Gone are the days when gamers had to rely solely on high-end PCs or consoles for playing graphic-intensive games. With the rise of cloud gaming, also known as gaming on demand or gaming as a service, players can now access games via remote servers hosted in data centres. This approach eliminates the need to download games onto personal devices, allowing users with stable internet connections to stream and play games directly from the cloud. It is believed that cloud gaming reduces costs and removes platform barriers, making high-quality gaming more accessible.
According to a video gaming data presenter Gameopedia, Game Cluster, a startup demonstrated the technology of cloud gaming in 2000. They released it around 2003. Almost two years later, they offered PC games on their servers. But despite its introduction, it is believed that cloud gaming suffered to compete with PC games due to latency and Internet connectivity issues. But with the advent of new technologies and digitisation, it seems to get the attention from players worldwide. As per market research firm Statista, the worldwide cloud gaming market is expected to reach $ 6.91 billion by 2024. It is also expected that there will be 501.1 million cloud gamers by 2029. So, what impacts does cloud gaming have on the online gaming industry? In this article, BrandWagon Online takes a look into the impacts and challenges ahead of cloud gaming.
Democracy… we love you
It seems like cloud gaming has the potential to provide a level playing field to the industry. Some gamers can’t afford expensive PC or consoles. Cloud gaming seems to bring this category of gamers on board with other players, opening up the gaming world to a wider audience. Interestingly, the USA is expected to generate the highest revenue in cloud gaming amounting to $ 1,938 million in 2024, as per a report by Statista.
Transformation of business model
Currently, the traditional gaming industry which includes PC or console gaming is believed to revolve around the sale of physical or digital game copies. This phenomenon is believed to be challenged by cloud gaming. Currently, most cloud gaming servers are paid. Service providers like Xbox Cloud Gaming, PlayStation Plus Premium, Luna, and GeForce Now have been offering their services starting from $ 4.99- $ 19.99 per month. They offer a library of games rather than an individual game.
Slippery road ahead…
Despite having several advantages, cloud gaming hasn’t been able to replace traditional gaming as latency and Internet related problems haven’t faded completely. Especially in India, where 48% of Indians doesn’t have access to the Internet, and the quality of Internet service does not match up to other G20 countries, as per a report by ICRIER, it becomes a slippery path for cloud gaming to emerge as an alternative to traditional gaming.