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A gamer plays soccer title Pro Evolution Soccer 2019 on an Xbox console.
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Microsoft is developing dedicated streaming hardware that people will be able to hook up to their TVs to use its Netflix-like cloud gaming service.

The company is betting the future of video games will be a subscription-based model where people pay a certain amount of money each month to get access to a plethora of titles.

Its Xbox Game Pass service does exactly that, offering access to a library of games developed both in-house and by third-party studios.

That’s mostly digital downloads, but last year streaming was added with Microsoft publicly releasing Xbox Cloud Gaming. The feature is sort of like a “Netflix for games,” allowing gamers to play games that are hosted on remote servers and then streamed to users over the internet.

A number of other companies have launched similar game-streaming services, including Google with Stadia and Amazon with Luna.

Now, Microsoft is aiming to push its cloud gaming product to other platforms. It started rolling out Xbox Cloud Gaming to some users via a web browser on iPhones, iPads and PCs in April (Microsoft couldn’t launch a proper mobile app for cloud gaming on Apple devices due to a dispute over App Store policies). And on Thursday, the company announced it wants to expand the service to TVs as well.

One way it plans to do that is by partnering with manufacturers to add cloud gaming to smart TVs. But Microsoft is also developing streaming devices which users can plug into their TV or computer monitor to stream games from the cloud. The company didn’t elaborate on what those devices could look like, though it’s reminiscent of Amazon’s Fire TV and Google’s Chromecast dongles, both of which now support cloud gaming.

In addition, Microsoft says it is working with mobile carriers like Telstra in Australia to offer new Xbox subscription models. It’s also expanding cloud gaming to four new countries — Australia, Brazil, Mexico and Japan —  later this year, and aims to publicly launch the browser-based version of the software to all members of its $15-a-month Xbox Game Pass Ultimate subscription in the coming weeks.

Microsoft said it plans to add cloud gaming to its new Xbox Series X console, which launched last November to compete with Sony’s PlayStation 5. In the next few weeks, the company will also upgrade the servers that power its cloud gaming service from its old Xbox One hardware to the Xbox Series X.

Microsoft competes aggressively with Sony when it comes to gaming. But it’s taking a different strategy to its Japanese counterpart. While Sony is known for blockbuster exclusives that can only be played on a PlayStation console, Microsoft is focusing on embedding its Xbox services onto multiple platforms, including mobile and PC.

Microsoft has been stepping up its investments in gaming, buying the iconic studio Bethesda for $7.5 billion in its biggest video game-related acquisition yet.

The company is holding a joint event with Bethesda on Sunday as part of the E3 gaming conference to show off new games, with fans speculating they will reveal some details about a hotly-anticipated sci-fi game called Starfield.

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Amazon sued by DC attorney general for allegedly excluding neighborhoods from Prime delivery

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Amazon sued by DC attorney general for allegedly excluding neighborhoods from Prime delivery

Washington, D.C.’s attorney general sued Amazon on Wednesday, accusing the company of covertly depriving residents in certain ZIP codes in the nation’s capital from access to Prime’s high-speed delivery.

The lawsuit from AG Brian Schwalb alleges that, since 2022, Amazon has “secretly excluded” two “historically underserved” D.C. ZIP codes from its expedited delivery service while charging Prime members living there the full subscription price. Amazon’s Prime membership program costs $139 a year and includes perks like two-day shipping and access to streaming content.

“Amazon is charging tens of thousands of hard-working Ward 7 and 8 residents for an expedited delivery service it promises but does not provide,” Schwalb said in a statement. “While Amazon has every right to make operational changes, it cannot covertly decide that a dollar in one zip code is worth less than a dollar in another.”

Amazon spokesperson Steve Kelly said in a statement it’s “categorically false” that its business practices are “discriminatory or deceptive.”

“We want to be able to deliver as fast as we possibly can to every zip code across the country, however, at the same time we must put the safety of delivery drivers first,” Kelly said in a statement. “In the zip codes in question, there have been specific and targeted acts against drivers delivering Amazon packages. We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers.”

Kelly said Amazon has offered to work with the AG’s office on efforts “to reduce crime and improve safety in these areas.”

In June 2022, Amazon allegedly stopped using its own delivery trucks to shuttle packages in the ZIP codes 20019 and 20020 based on concerns over driver safety, the suit states. In place of its in-house delivery network, the company relied on outside carriers like UPS and the U.S. Postal Service to make deliveries, according to the complaint, which was filed in D.C. Superior Court.

The decision caused residents in those ZIP codes to experience “significantly longer delivery times than their neighbors in other District ZIP codes, despite paying the exact same membership price for Prime,” the lawsuit says.

Data from the AG shows that before Amazon instituted the change, more than 72% of Prime packages in the two ZIP codes were delivered within two days of checkout. That number dropped to as low as 24% following the move, while two-day delivery rates across the district increased to 74%.

Amazon has faced prior complaints of disparities in its Prime program. In 2016, the company said it would expand access to same-day delivery in cities including Atlanta, Chicago, Dallas and Washington, after a Bloomberg investigation found Black residents were “about half as likely” to be eligible for same-day delivery as white residents.

The ZIP codes in Schwalb’s complaint are in areas with large Black populations, according to 2022 Census data based on its American Community Survey.

The Federal Trade Commission also sued Amazon in June 2023, accusing the company of tricking consumers into signing up for Prime and “sabotaging” their attempts to cancel by employing so-called dark patterns, or deceptive design tactics meant to steer users toward a specific choice. Amazon said the complaint was “false on the facts and the law.” The case is set to go to trial in June 2025.

According to Scwalb’s complaint, Amazon never communicated the delivery exclusion to Prime members in the area. When consumers in the affected ZIP codes complained to Amazon about slower delivery speeds, the company said it was due to circumstances outside its control, the suit says.

The lawsuit accuses Amazon of violating the district’s consumer protection laws. It also asks the court to “put an end to Amazon’s deceptive conduct,” as well as for damages and penalties.

To get packages to customers’ doorsteps, Amazon uses a combination of its own contracted delivery companies, usually distinguishable by Amazon-branded cargo vans, as well as carriers like USPS, UPS and FedEx, and a network of gig workers who make deliveries from their own vehicles as part of its Flex program.

Amazon has rapidly expanded its in-house logistics army in recent years as it looks to speed up deliveries from two days to one day or even a few hours. In July, the company said it recorded its “fastest Prime delivery speeds ever” in the first half of the year, delivering more than 5 billion items within a day.

In relying on its own workforce, Amazon has assumed greater control over its delivery operations.

In his complaint, Schwalb cites an internal company policy that says Amazon may choose to exclude certain areas from being served by its in-house delivery network if a driver experiences “violence, intimidation or harassment.” The company relies on UPS or USPS to deliver packages in excluded areas.

WATCH: Amazon bets on consumers shopping while tuning into Black Friday game

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Spotify Wrapped is out. Here’s who topped the 2024 streaming charts

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Spotify Wrapped is out. Here's who topped the 2024 streaming charts

This photograph taken in Paris on April 19, 2024, shows a smatphone displaying the US singer-songwriter Taylor Swift’s new album “The Tortured Poets Department” on Spotify. Queen of pop Taylor Swift released her highly anticipated record “The Tortured Poets Department” on April 19, 2024 — the 11th studio album from the megastar who is already having a blockbuster year. 

– | Afp | Getty Images

Spotify Wrapped 2024 is out, giving hundreds of millions of users the ability to see their most-played songs and artists over the course of the year.

The annual report, which allows users to compare their music listening habits with other fans around the world, on Wednesday began rolling out to all users on the streaming platform.

This year, Spotify added additional artificial intelligence features to enhance individual users’ Wrapped experiences, including personalized AI podcasts about users’ music listening histories, a feature powered by Google’s NotebookLM and stemming from an expanded partnership between the two companies.

Last month, Spotify reported earnings that included optimistic profit guidance for the fourth quarter, despite missing analysts’ third-quarter targets for both revenue and earnings per share. The company also said it had about 640 million monthly active users on the platform, which slightly surpassed analyst expectations.

Taylor Swift is Spotify’s Global Top Artist for the second year in a row, dominating the most-streamed global albums chart with “The Tortured Poets Department: The Anthology,” and Sabrina Carpenter’s hit song “Espresso” is the most-streamed song both globally and nationally.

Here are some of this year’s chart-toppers:

Most-streamed songs in the United States

  1. “Espresso” by Sabrina Carpenter
  2. “Not Like Us” by Kendrick Lamar
  3. “A Bar Song (Tipsy)” by Shaboozey
  4. “I Had Some Help (Feat. Morgan Wallen)” by Post Malone
  5. “MILLION DOLLAR BABY” by Tommy Richman

Kendrick Lamar’s “Not Like Us” skyrocketed to second-most-streamed song in the country this year. Drake, Lamar’s opponent in a renewed public rap battle earlier this spring, surged on the most-streamed artists’ list, while Lamar ended up in seventh place on that list.

Most-streamed artists in the United States

  1. Taylor Swift
  2. Drake
  3. Zach Bryan
  4. Morgan Wallen
  5. Kanye West

“The Joe Rogan Experience,” which hosted President-elect Donald Trump in October, took the No. 1 spot for top podcasts worldwide. “Call Her Daddy,” which hosted Vice President Kamala Harris that same month, took second place.

Both appearances represented a distinct shift in presidential campaigning strategies toward non-legacy-media outlets, reaching millions of weekly listeners.

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Okta shares pop 18% on earnings beat, strong guidance

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Okta shares pop 18% on earnings beat, strong guidance

File photo of Todd McKinnon, chief executive officer of Okta Inc.

Bloomberg | Bloomberg | Getty Images

Shares of Okta popped more than 18% in extended trading Tuesday after the identity management company released third-quarter results that beat analysts’ estimates and offered rosy guidance.

Here’s how the company did:

  • Earnings per share: 67 cents adjusted vs. 58 cents expected by LSEG
  • Revenue: $665 million vs. $650 million expected by LSEG

Okta helps companies manage employees’ access to applications or devices with features such as single sign-on and multifactor authentication. The company swung to profitability, reporting net income of $16 million, or 9 cents per share, during the quarter, compared with a net loss of $81 million, or 49 cents per share, in the same period last year.

Revenue increased 14% from $569 million a year ago, according to a release. The company reported $651 million in subscription revenue for the quarter, beating the $635 million average analyst estimate, according to Street Account.

“Our solid Q3 results were underpinned by continued strong profitability and cash flow,” Okta CEO Todd McKinnon said in a statement. “The focused investments we’ve made in our partner ecosystem, the public sector vertical, and large customers are materializing in our business with each of these areas contributing meaningfully to top-line growth.”

For the fourth quarter, Okta said it expects to report revenue between $667 million and $669 million, topping the $651 million average estimate, according to LSEG. The company expects to report earnings of 73 cents to 74 cents per share for the period, which also exceeded estimates.

Prior to the close, Okta shares were down 10% for the year, while the Nasdaq is up 30% over that stretch.

Okta will host its quarterly call with investors at 5 p.m. ET. 

WATCH: CNBC’s full interview with Okta CEO Todd McKinnon

Watch CNBC's full interview with Okta CEO Todd McKinnon

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