Deutsche Telekom to take on Google with MagentaGaming

Deutsche Telekom AG is betting that building the Netflix of video games can stave off competition from the likes of Google and Microsoft in the burgeoning sector of cloud gaming.

The German phone company said it will open MagentaGaming, which allows users to stream more than 100 titles, to beta testers on August 24. Microsoft and Google plan to start their comparable xCloud and Stadia services in October and November, respectively.

Companies are investing heavily in the service because the technology relies on superfast internet access and eliminates the need for expensive hardware, paving the way for millions of additional gamers to become customers.