Microsoft’s cloud aspirations extend beyond Azure and enterprise. To emphasize the point, the company has announced a collaboration with chipmaker AMD. The two companies say the goal of the partnership is to further the development of cloud gaming. In fact, Microsoft and AMD say they want to usher in a new era of gaming on the cloud.

AMD will work with Microsoft to create a new generation of devices that enhance the cloud gaming experience. The concept of gaming on the cloud could transform the industry as it would give users easier access.

If you are unfamiliar with cloud gaming, it allows gamers to share resources from a central hub. A company would provide graphics card and processing power in the cloud. The upside to the concept would be gamers won’t need powerful PCs to play top tier games.

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Microsoft has been reportedly working on two new Xbox consoles. One is Project Scarlett, which will be a local console and a follow up to the Xbox One. Another rumoured console is the “Scarlett Cloud”, which would be a more affordable cloud-based device.

To ensure the machine is capable of giving the best experience, Microsoft has teamed with AMD. The chipmaker discussed its collaboration with Microsoft and confirmed the partnership was to develop consoles:

“We’re partnered with them in game consoles. I think we have a vision of where cloud computing is going and we’re working closely with them. I really think the interesting thing about semiconductors is we’re making decisions now that you won’t see the outcome for 3, 4, 5 years. I love the fact we’re trying to predict the future and hopefully we make some good decisions.” – Dr. Su, CEO, AMD

Cloud Gaming Division

Earlier this year, Microsoft announced a new cloud gaming division. The new division is helmed by Kareem Choudhry, who has previously worked in Outlook and Xbox.

Microsoft wants the division to act as a magnet for developers to create games and services through Microsoft’s cloud products. Driving devs to use Azure to underpin their cloud experience will be a core part of the cloud gaming division.

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