In a move that could give Microsoft (MSFT  ) a hand up in the next chapter of the console wars, the company has announced that it will be bundling its xCloud service with a subscription for its Xbox Game Pass service. The announcement comes a month after Microsoft announced that xCloud would have integration with Facebook Gaming (FB  ) after the company announced plans to shut down Mixer.

On June 22, Microsoft announced that it was shutting down Mixer, the company's game streaming service, and that users would be migrated to Facebook Gaming as part of a partnership between the two tech firms. As part of its announcement, Microsoft announced that xCloud, the company's game streaming service, would have Facebook Gaming integration so users could stream their gameplay straight from xCloud.

Now, Microsoft is offering xCloud as part of a larger bundle. The bundle includes Xbox Game Pass, a subscription service that lets users play a variety of Xbox games without needing to purchase them directly, Xbox Live membership, and xCloud. Users will be able to utilize the Xbox Game Pass and xCloud together, allowing users to play Xbox games on any device, including phones and tablets. Combined with Facebook Gaming integration, Microsoft's new offering ahead of its next-gen launch should give the company a substantial leg up on Sony in terms of content offerings, should Sony not attempt to meet Microsoft's offerings.

A drawback to Microsoft's offering, however, is that xCloud will be limited to the bundle, at least for the first few months or so while Microsoft fine-tunes the product.

"Over time we will continue to expand how we introduce streaming as part of the platform, and playing games that you own that aren't part of the subscription. For launch we're putting it in Ultimate for no additional cost. We think it's a good audience for us to start with, and it's an audience that plays a lot of games," Phil Spencer, Microsoft's Head of Gaming, told The Verge.

xCloud is Microsoft's entry into the nascent game streaming market. Game streaming services such as xCloud or Google's (GOOGL  ) Stadia host popular games on servers and allow users to stream games directly to any device, similarly to video streaming services such as Netflix (NFLX  ) or Hulu (parent company Disney, (DIS  ). Google was the first to the market with Stadia, although Stadia is now notorious for its rough launch, which was marred by technical problems and unfulfilled promises.

As was explained in a previous article on Passport to Wall Street, Microsoft stands to benefit immensely from its xCloud launch, if executed correctly. Stadia's subpar launch leaves a lot to be desired in the gaming community. If xCloud lives up to expectations and Microsoft can steadily grow the service past launch, Microsoft could stake a substantial claim in the game streaming market, which some tech companies are hedging on becoming the "next generation" of gaming beyond consoles and PCs. Streaming integration through Facebook Gaming and combining xCloud with an already popular bundle only makes any potential success by xCloud that much more lucrative for the tech-sector veteran.