by Artificial intelligence developer OpenAI — in which Microsoft ( MSFT ) owns 49% — is reportedly developing a web search product to compete with Google Alphabet ( GOOG , GOOGL ), according to The Information.
Yahoo Finance Tech Editor Dan Howley breaks down the report, also discussing Microsoft’s plans to expand Xbox exclusive gaming titles to now be available to play on the Sony PlayStation 5 and the Nintendo Switch.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Note to editor: This article was written by Luke Carberry Mogan.
Video transcript
JULIE HYMAN: OpenAI has been reported to develop a web search product that could compete with Google, according to a report from the intelligence. Yahoo Finance’s Dan Howley is here with the details on what we know and whether it will really be a contender.
DAN HOWLEY: Yes. I mean, it’s an interesting story, right? This is basically the flip side of what Microsoft tried to do, right. They took Bing. They integrated OpenAI’s GPT technology into it, as well as their own AI. And they said we are going to steal market share from Google. And it’s been a year, and it didn’t really happen.
So now they just kind of reversed it, I guess. And OpenAI is working on some kind of search product that would be powered by Bing technology. So it’s weird. You know, There is a reason that Google is where it is, because they are the best search engine, right? I mean, they are for a very long time. Don’t tell Yahoo that.
But– just the idea that Microsoft is going to be able to overcome that 90-something– I think it’s like a desktop rate of 97% of market share, I mean, it’s tough. There has to be something radical to do that. And you know, according to that article, they were saying that ChatGPT is continuing to grow the number of website users. You know, Bing stayed relatively the same. So, I mean, maybe it’s a better idea to go with ChatGPT, maybe that’s the name and it’s going to get more people into it. It’s a good idea.
But, you know, for me, actually, I use the Edge browser, the Microsoft Edge browser rather than Google Chrome. But I use Google search instead of Bing, because the search results aren’t as good, you know? I mean, if I’m looking for something, Google is going to pull it up. It’s not just Bing.
JOSH LIPTON: Yes. Shifting gears here, Dan, to another tech giant. Microsoft with some updates on its Xbox business. What are the updates in there? What is it–
DAN HOWLEY: So, this has been kind of bubbling around in gaming when there was talk that Microsoft was going to bring first party titles to rival consoles. And they are. And there’s a reason this is a big deal, because you have a first-party title, which means the company that makes the console also makes the game. They are basically the way to buy a console. You wait until a company releases a good first party game. And then you say, now I’m going to go buy that Xbox, or I’m going to go buy that PlayStation.
Sony is great with that. Nintendo, I mean, great about that. And that’s like 136 million switch consoles. And Microsoft is not that good. So what they’re doing is saying they’re going to bring four games. They did not specifically announce them. They want to let the studios develop those games on their own for the Playstation and the Switch.
The most important thing to note here, however, said Xbox CEO Phil Spencer, is that it’s not a fundamental change to its exclusivity strategy. So they’re still going to have that. But they are now looking at the idea of bringing some of those to other consoles as well.
The reason that makes sense for Microsoft is because you’re getting more people into those games. After all, this is what Microsoft Game Pass is all about, it’s their subscription service. They have 34 million subscribers. They advertised just $9.99 per month $16.99 per month for the ultimate version. I subscribed.
And if you get people hooked through the Playstation or through the Switch, it doesn’t matter if they don’t have the console, they can get it on a computer. You can do it through your Mac, right? A Chromebook can make it through. And that’s the ultimate goal of Game Pass being the big subscription service that draws people in. And look, 34 million players a month, that’s not bad.
JOSH LIPTON: Yes. Not bad. Quick question, number one game in the Howley family right now?
DAN HOWLEY: Right now it is “Like a Dragon,” “Infinite Wealth,” and it will be “Persona 3.” And then “Tekken 8.” My wife is also good at “Tekken.” We played – really fast, we played at an arcade. I kicked the arc, and I got kicked out, like that.
JOSH LIPTON: Yes. Well, it’s frustrating.
JULIE HYMAN: But it sounds fun.
JOSH LIPTON: It’s frustrating. Dan Howley, thank you.
