Fact Check: Microsoft is NOT Creating a Streaming Game Service to Rival OnLive

Microsoft challenge OnLiveThis morning there are numerous reports that Microsoft is creating a universal gaming portal that will rival OnLive’s cloud gaming service. All of these reports stem from one article written by an author that goes by the name “ManPac”, and writes for electronictheatre.

No where in the article does it quote any reliable sources that that says that Microsoft is creating an OnLive rival. The article simply discusses many things that the Microsoft community have known for a long time.

The article states:

“Now it seems that the platform holder (Microsoft) is getting ready to utilise this success to leverage its products in other markets, with a universal gaming portal expected to rival OnLive upon its launch in 2012.”

Microsoft, however has not said that they plan on creating a cloud gaming service similar to OnLive. The only facts that we know, are that Microsoft’s Xbox LIVE is available on Windows 7 phones with limited access. You can not play all of the games on a phone, that you can play via Xbox Live on the Xbox 360. It’s just a very limited version, and definitely isn’t cloud gaming, or anything OnLive should be fearful of.

There was also an unconfirmed report back in July that Windows 8 will allow gamers to play Xbox 360 games on their PC (via the Windows Live Marketplace). This certainly isn’t cloud gaming, and definitely wouldn’t compare to OnLive either.

This article on electronictheatre states:

Having recently announced cloud storage for Xbox 360 gamers, it seems likely that Microsoft Studios will make available a game streaming service, allowing Xbox 360 games to be played on console, smartphone, tablet or PC.

It seems likely? Simply having cloud storage doesn’t make it seem likely that Microsoft will create a game streaming service. This is simply an assumption made by “ManPac”; an assumption that many media outlets seem to be taking as a fact. Rackspace, Google, Amazon, and thousands of other large companies offer cloud storage. Does this mean that they are working on creating streaming game services as well? Absolutely not.

In order to create a streaming game service like OnLive, Microsoft will need a lot more than cloud storage and games that can be played on multiple platforms. There are many obstacles standing in Microsoft’s way, if they intend to challenge OnLive with a cloud (streaming) game service. There are numerous patents, and a lot of investment in servers that they will need to find a way to maneuver through.

If you were like one of the many who read the news this morning, and took it as fact, go back and reread the article. The article simply made factless assumptions, by using phrases such as “now it seems”, and “it seems likely”. The fact remains that Microsoft has NOT many any announcements of a streaming game service, and no credible sources have stated otherwise.

What do you think? Will Microsoft create a rival to OnLive? Let us know at OnLiveFans.com Forum

For those of you unfamiliar with Xbox Live on the Windows 7 Phone, take a look at this video from Engadget below:


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Ed Krassenstein On October - 6 - 2011

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