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At a Glance
Cloud gaming, often known as “gaming on-demand,” allows consumers to view and play video games without specialized equipment or gaming devices. Cloud-based subscription models help consumers tremendously, owing to their ease of use and accessibility. By 2023, cloud gaming is expected to be worth $450 million, up from $45 million in 2017. This is a 900 percent increase in online gaming.
Over the previous decade, cloud technology has proven to be one of the most significant disruptors. Breakthroughs in cloud technology are responsible for many of the new-age firms we see in today’s success stories, and they’ve radically altered how businesses used to function in the past – from streaming movies and TV episodes on Netflix to listening to music on Spotify to CRM systems on Salesforce.
Another area where cloud technology is making inroads is gaming. The growth of a new business model, subscription-based services, is owing to cloud-based services. Major industries are transitioning to a subscription model, and gaming is no different – the magnitude of the changes underway threatens to throw the industry on its head.
Gaming is anticipated to make significant advancements in the cloud. Physical game copies have been slowly declining in popularity over the last few years, and like vinyl records, they will eventually be relegated to collector’s goods.
“Multi-player” online gaming, in which you compete against others online in a game, is currently one of the most popular forms of gaming. Cloud gaming is the most recent approach to do this, in which you connect your device to play games stored on the cloud.
Cloud gaming, often known as “gaming on-demand,” allows users to watch and play video games without the need for specialized gear or gaming devices.
Instead of utilizing the device in front of you to power the game, cloud gaming uses a server, a powerful, industrial-strength PC, within a secure data center. Gameplay is then broadcast back to you over the internet, allowing you to play the latest games on almost any device, including those who cannot run that game.
Consumers benefit greatly from cloud-based subscription models due to their simplicity of use and accessibility. Users may log in to their subscription, search for a game in a library of accessible titles, and immediately begin streaming the game. Gone are the days when downloading a game took hours, assuming that you had the necessary hardware.
The games are now easier to obtain and play, thanks to cloud-based models. As a result, it’s no surprise that the cloud has shook the gaming business to its core. Cloud gaming is anticipated to reach $450 million by 2023, up from $45 million in 2017, representing a 900 percent rise in online gaming.
In a huge announcement, Sony revealed in its 2019 Q1 financials that digital game sales had overtaken traditional game sales for the first time. Physical game copies are anticipated to continue to lose ground against digital copies. The disparity will continue to widen, and cloud-based gaming will profit handsomely from it.
The considerable growth will be fueled by the advantages it provides to consumers and the emergence of supporting technologies that make it smooth, such as 5G, CDN, PaaS, IaaS, and SaaS.
Google’s Stadia cloud gaming service went into testing in November. Microsoft’s xCloud service is scheduled to launch this year, and Amazon just unveiled Wavelength, a solution for 5G game streaming.
Global technological behemoths have recognized the potential in this sector, and they look to be prepared with a well-thought-out plan and substantial expenditures. Sony and Microsoft have established a collaboration to deliver game streaming services using Microsoft’s Azure cloud network. Since its introduction, Sony’s digital PlayStation Plus, an online membership service, has been an enormous success.
Microsoft’s ProjectXCloud streaming service is another significant declaration of intent in this sector, with the company planning to launch a “truckload” of games on the platform in 2020. Stadia, Google’s cloud gaming service, was introduced in November 2019. Stadia can broadcast video games at a resolution of up to 4K at 60 frames per second.
Cloud-based online gaming has ushered in a new age in the gaming business, and tomorrow’s leaders will need to be well-prepared to react to this new paradigm and make winning bets.
Investing in the right set of technologies will be crucial, which will help providers ensure that they are providing the optimal user experience to stake their position as the leaders in this emerging space.
Because the online game application will almost certainly demand a lot of streaming, having a dependable internet connection is a must for the user. Because so many parts of the world still lack access to a consistent internet connection at actual threshold speeds, this is difficult for game developers.