Technology giants are trying to bring to videogames the same streaming capabilities that gave rise to Netflix and Spotify, a transformational leap that could usher in a new wave of growth for an industry bigger than Hollywood.

Microsoft Corp. and Alphabet Inc.’s Google recently announced efforts to let people play big-budget, visually complex videogames—so-called triple-A games—on internet-connected devices without requiring specialized hardware that costs hundreds of dollars. They join traditional publishers such as Electronic...