By Aashish Bhatnagar
Cloud Gaming: A new shift in the gaming world
Cloud gaming or online gaming allows players to stream and play mobile games over the internet without the need for high-end gaming hardware. Cloud gaming stands as a transformative force in the gaming industry, reshaping the way gaming enthusiasts interact with their favorite gaming titles and profoundly influencing gaming market dynamics. The advent of high-speed internet like 5G has paved the way for seamless streaming of graphically intensive games, catalyzing a substantial shift in consumer behavior. According to Lumikai report, Indian gaming industry poised for strong growth: projected to reach $7.5 Bn by FY28. PwC’s insightful study forecasts a decline of 2.2% annually in traditional gaming console sales through 2024, contrasted against the swift rise in cloud gaming revenues. This flourishing sector, however, faces some challenges like latency and internet infrastructure limitations that demand ongoing technological innovations. Despite this, the fascination of cloud gaming lies in its potential to redefine accessibility and convenience in the gaming landscape, thereby shaping the industry’s trajectory in the years ahead.
The main contributor to the growth of cloud gaming is the penetration of 5G technology, that has profoundly impacted the landscape of cloud gaming. It is playing a pivotal role in transforming the gaming experience for users worldwide. One of the primary contributions of 5G to cloud gaming is its ability to provide unparalleled data transfer speeds and low latency. These features are paramount in the gaming realm, where split-second decisions and rapid response times are crucial. The high speeds of 5G networks facilitate the swift transmission of data between the player’s device and the remote servers where the game is processed, resulting in reduced lag and a more responsive gaming environment.
The potential rise of 5G has led to a significant growth of Cloud Gaming, a report by Statista says that this growth is expected to continue, with a compound annual growth rate worldwide (CAGR) of 39.32% from 2023 to 2028.
Reasons for adoption of cloud gaming in 2023
1- Greater reach – Gamers are playing across devices. The games are streamed over the internet to the player’s device. This can be a computer, laptop, tablet, smartphone, or even a smart TV. Developers are looking at ways to make the game available across all platforms without additional development spend. Hence, Cloud fits in perfectly where games are easily accessible to gamers without high-end gaming gadgets or a dedicated gaming space.
2- Marketing potential – With game as a link, access becomes easy. Gamers get access to a wide range of games without the need for large downloads or installations, and the potential for more seamless cross-device gaming experiences. Cloud gaming offers the advantage of sharing a game via a link conveniently amongst gamers, thus increasing the potential for shareability and an increased chance of the game going viral as well.
3- Driving trial is easier – Many users want to try the game before they invest in downloading it. Cloud allows that capability to a developer. A gamer can choose to try and test as many games as possible as per choice. Gamers find it easy to play the game on browser as a trial and if they like it, they can install it.
4- In-game purchases – Merchandize purchase within games is a huge market. App stores charge a steep commission from developers which results in inflated prices for gamers. On cloud, developers can integrate third party stores without steep commission. This means merchandise is cheaper on the cloud.
5- Innovations are easy on cloud – Deployment of updates and new features is easier on cloud since only the cloud version of game needs to be updated and all gamers can access it instantly. This feature allows users to quickly update and switch directly to gameplay in no time. Features on Cloud like instant sharing, live streaming, and collaborative gaming contribute to a more interactive and social gaming environment enhancing the multiplayer experience.
Cloud Gaming so far in 2023
In 2023, cloud gaming has witnessed transformative advancements, reshaping the gaming landscape. The integration of 5G technology has bolstered performance, reducing latency and elevating streaming quality. Cloud gaming platforms have expanded their libraries, offering a diverse array of titles, while cross-platform integration ensures a seamless gaming experience across devices. The industry has also seen the rise of niche cloud gaming platforms tailored to specific genres or demographics. User interfaces have undergone improvements for better navigation, and social features are increasingly emphasized. Diverse monetization models, including subscriptions and freemium options, showcase a dynamic approach to evaluating profitability and user value. Overall, 2023 marks a pivotal year for cloud gaming, characterized by technological innovation, innovation in game design and an enriched gaming experience for users.
The author is global marketing director, now.gg
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