Facebook Buys Cloud Gaming Firm PlayGiga

Facebook, Inc. (FB) acquired Spanish cloud gaming startup PlayGiga, with the social media giant confirming the deal to CNBC as well as on Twitter. The acquisition is part of Facebook's increased focus on the video gaming market in recent years. Last week, Spanish business newspaper Cinco Dias reported that Facebook was in talks to acquire PlayGiga for about 70 million euros. In a tweet confirming the acquisition, Facebook Gaming said, "We're thrilled to welcome @PlayGigaOficial to the Facebook Gaming team. We'll decline further comment for now." On its website, PlayGiga said the team is moving onto "something new" but will continue its work in cloud gaming with a new mission. Facebook has expanded into video gaming in recent years. The company acquired virtual reality headset maker Oculus for $2 billion in 2014. Last year, Facebook launched Facebook Gaming, which it claims now has more than 700 million monthly users. In March of this year, Facebook added a 'Gaming' section to its main navigation menu. Other tech giants have launched their own cloud video gaming services recently. Apple launched Apple Arcade, a new $4.99 per month game subscription service, in more than 150 countries in mid-September. Google's game streaming service Stadia was launched in November with a special Founder's Edition at a cost of $129.99. Stadia offers premium subscription, Stadia Pro, at a cost of $9.99 a month. Individual games without a subscription will be available in 2020. Sony Corp. (SNE) also has a cloud gaming service of its own, called PlayStation Now. Microsoft Corp. (MSFT) began previewing its own xCloud streaming gaming service in October, ahead of its official launch in 2020.