Microsoft is closing its Mixer service on July and plans to move existing partners over to Facebook Gaming. The surprise announcement means Mixer partners and streamers will be moved to Facebook Gaming starting today, and Microsoft will no longer operate Mixer as a service in a month's time

GlobalData Senior Analyst of Thematic Research Rupantar Guha said that the platform was struggling due to limited content and a lack of exclusive streaming rights. The integration of Mixer with Facebook Gaming also makes sense given the similar propositions of the two platforms and Microsoft’s long-term plans with cloud gaming. However, the transition of streamers from Mixer to Facebook Gaming will be a challenge.

“Microsoft failed to understand consumer behaviours associated with streaming. It prioritized bringing popular streamers such as Ninja and Shroud from Amazon’s Twitch platform when it should have focused on acquiring exclusive streaming rights for esports events. This would have not only attracted viewers but also improved its content library. Viewers tend to choose the platforms that stream their favourite games, irrespective of who is playing them.

“The integration with Facebook Gaming is logical given that both the platforms claim to offer streamers the ability to build their fan base and earn money faster than Twitch or YouTube. Streamers on Mixer now have access to Facebook Gaming’s 700 million monthly users, however, top streamers such as Ninja and Shroud are unlikely to move to Facebook Gaming as the platform does not allow them to earn money from user donations and advertisements.

“Microsoft plans to bring xCloud to Facebook Gaming later this year to allow gamers to play and stream xCloud games directly on Facebook Gaming, just as Google Stadia links with YouTube. Facebook Gaming will serve as a vehicle for Microsoft to challenge both cloud gaming companies such as Sony and Nvidia, as well as streaming platforms such as Twitch (Amazon) and YouTube (Google).”