As Microsoft looks to continue to bolster the social aspect of its Xbox video game console, the technology giant announced Thursday that it has acquired gaming company Beam.
Boasting of a community of over 100,000, Beam is a company that is just a few months old. The platform is unique as it lets viewers impact the game by giving players challenges or even making real-time choices that affect their gameplay as the viewers are allowed to watch others playing video games. A watcher could select the weapon, for example, if you are playing a shooting game.
Microsoft said that the acquisition “supports our ongoing commitment to make Xbox Live more social and fun” even though the company did not disclose the price of the deal or how it would fit into its strategy. These were mentioned by the company in a blog post that announced the deal on Thursday.
$2.5 billion was spent by the company nearly two years ago when Microsoft had bought Mojang, the Swedish firm behind Minecraft. Minecraft is another game with a big community.
The aim of Microsoft seems to be to building up and enhancing its social capabilities on Xbox Live. It is the online gaming platform of the company. Users can play with friends online and share game clips after they sign up to Xbox Live. Microsoft is attempting to foster an online gaming ecosystem and one that it can monetize and this is a part of that effort by the company.
Washington-based tech titan, the Redmond, has been struggling in the gaming business recently. said gaming revenue decreased $152 million or 9 percent, due to lower Xbox hardware revenue in its fiscal fourth-quarter earnings release, Microsoft said. However the company added that this was offset in part by higher sales from Xbox Live.
Sony’s PlayStation 4 has its own rival online service and has charged ahead. With a TV streaming service called Vue, the company has also looked to create a broader ecosystem of products. The threat coming from non-traditional gaming players like Amazon is also being tried to be fended off by Microsoft. Video game streaming service Twitch was bought in 2014 by the U.S. e-commerce giant for around $970 million.
Users are allowed to steam games and hence both Twitch and Beam are similar. But the fact that users can interact and influence the game sets Beam apart.
Xbox One S, a slimmer and more powerful console than the previous iteration, is being released by Microsoft this month which is a new version of the Xbox. In addition to laying the foundation for future virtual reality gaming, it’s aimed at boosting hardware sales.
Microsoft would be helped to foster a larger community to help recurring revenues in its gaming division if hardware sales falter by the acquisition of Beam given that Xbox Live was such a bright spot in Microsoft’s earnings.
Seattle-based Beam is also based in Redmond and will remain there.
“As part of Xbox, we’ll be able to scale faster than we’ve ever been able to before. We’re expanding the team, bolstering our infrastructure, and most importantly, continuing to grow and support the amazing community at Beam,” Beam Chief Executive Matt Salsamendi, said in a blog post.
(Adapted from CNBC)









