Microsoft launched Xbox Game Pass in 22 countries, including the United States and 19 European countries.
It requires a fast internet connection. It is expected to grow to $4.8 billion by 2023.
Analysts expect immersive experiences, via better sound and graphics, to drive sales of consoles.
Both Microsoft and Sony launching next-generation devices this year.
Microsoft is banking on offering many ways to play via the cloud service and consoles at different price points to give it an edge.
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