Snap announced a new ad-supported gaming platform Thursday, joining Google and Apple in a quest to grab attention and dollars from the multi-billion gaming industry.
Snap is betting that engagement with games will also lure more advertising dollars to its platform with non-skippable, six second video ads. Analysts were still skeptical about the company's ability to maintain its user base even after posting better than expected earnings with stabilizing user engagement in its fourth quarter 2018.
Google has also gotten into the gaming space, announcing last month it will launch a new streaming service called Stadia this year, which will let users play high quality games without expensive gaming consoles or computers. But like Apple, Google has yet to name a price for the service. "We wanted to build something that makes us feel like we're playing a board game with family over a long holiday weekend," Wu said. While there are several steps involved in getting a group of friends to join a game together on a separate app, Wu said Snapchat's existing platform gives it"the right ingredients to break down these barriers."
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