Great Idea, Challenging Business Model, Says Analyst

Not one to miss an opportunity to go down a lucrative new path, last week Amazon (AMZN) announced it is launching a cloud gaming platform, Luna.

Luna will launch at an introductory price of $6 a month with a tiered subscription structure, and the new service will go head to head with other big players’ services such as Google’s Stadia, Microsoft’s xCloud, and EA’s Origin Access.

Powered by AWS and integrated with its own live streaming platform, Twitch, the aim is to have the service accessible to any device with a screen. Although users playing on TVs will need to connect a FireTV box or a FireTV stick. Gamers using phones, tablets or PCs already online will be able to access the service without FireTV.

One thing the service won’t have at launch is much content. To start off, only 50 games will be available, and with one

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