Microsoft's Cloud Gaming is killin' it. 

Microsoft Corp. (MSFT) - Get Report represents a "$100 billion opportunity for Microsoft" according to a note published by KeyBanc Capital Markets on Monday, June 4. The note summarized the analysts' findings of the franchise ahead of E3. 

According to KeyBanc, Microsoft's Gaming division is on track to surpass $10 billion for the first time in 37 years. 

The note states that the "software and services segment could account for more than 65% of gaming revenue" for Microsoft. Xbox Live subscriptions are growing by 20%. 

KeyBanc states its "bull-case scenario analysis suggest Gaming could sustain double-digit growth over the next five years on increasing subscription and software attach-rates with overall revenue increasing to $15 billion by [Fiscal Year 2023] vs. $8 billion in [Fiscal Year 2017]."

Microsoft's recent acquisitions of developers, such as the studio who developed and published Minecraft, have made it a more valuable software subscription franchise. Especially after the release of GamePass, which KeyBanc refers to as "the Netflix of video games." GamePass is a subscription service offered by Microsoft. 

"We see the annual gaming conference, E3, as a potential catalyst that could further expose potential upside levers to Microsoft's burgeoning software subscription franchise within gaming," the note stated.

In midday trading, Microsoft was up slightly. 

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