The concept of entertainment seems to not be restricted to movies, music, and TV shows anymore, with mainstream gaming coming into the picture. While the segment is considered to be developmental, introduction of new technologies is enabling the modern transition from how games used to be played. One of the technologies which is considered to be a benefactor is cloud computing, as it has the potential to help gaming reach the next phase of its growth. “I believe the integration of cloud technology in gaming allows players to access games by eliminating the need for hardware. Overall, cloud technology seems to have revolutionised the gaming market by offering convenience, accessibility and enhanced gameplay opportunities,” Rohit Bansal, founder, Super 4, an online fantasy sports gaming platform, told FE TransformX.
The market, as it stands
From what it’s understood, the influence of cloud computing in the gaming industry is based on the technology’s ability to enable users to play high graphics games on mobile devices, laptops, among others. This factor helps remove the need for one to subject their electrical appliances to regular hardware upgrades. Furthermore, cloud computing’s impact on the gaming industry has the potential to increase bandwidth of players for different games, thus enabling the market to increase its overall revenue. With the fifth-generation (5G) technology making its way, market experts believe that its influence on the cloud gaming industry will allow developers to have more sources of revenue backed by high profits.
In terms of benefits, cloud gaming allows increased accessibility for games to be enjoyed without the need to have expensive hardware. Market research has shown that as cloud gaming is played on servers, chances of embezzlement of gamers’ data is reduced, along with ensuring economical costs, no device-based restrictions, and real-time multiplayer gaming experiences. Overall, problems related to processing capacity and memory storage get eliminated through the cloud computing’s impact. “I think factors such as the availability of high-speed internet, the adoption of budget-friendly smartphones, and the surge in mobile gaming have contributed to the growth of cloud gaming. Additionally, the rollout of 5G Internet should enhance the cloud gaming experience by providing glitch-free gaming and enabling real-time gaming live streaming on smartphones,” Harshit Jain, co-founder and CEO, OnePlay, a cloud gaming company, stated.
Numbers, and more numbers
According to Mordor Intelligence, a market intelligence and advisory firm, the global cloud gaming market is expected to clock $1.69 billion in 2023 and should further achieve $6.8 billion by 2028, at a 32.14% compound annual growth rate (CAGR). As per reports published by Ericsson, the total count of cloud gaming subscribers should reach close to 99 million by 2031. Based on what market trends suggest, the rise in augmented reality (AR) and virtual reality (VR) technologies has been the driving force behind the cloud gaming sector.
Interestingly, India too has seen its side of developments. For instance, in January, 2023, Reliance JioGames entered into a 10-year partnership to unveil JioGamesCloud in India. Moreover, 2022 saw Microsoft introducing Xbox Cloud Gaming in New Zealand and Argentina and Nintendo completing the acquisition of SRD Co Ltd. Moreover, future predictions indicate that access to high-quality internet will amplify the level of cloud gaming, as it’s considered to be in a nascent stage. Market signs suggest that an upward trend in business collaborations between game creators and cloud gaming corporations will benefit this landscape, since developers such as Mainframe have already entered into the planning stage for cloud games.
“The trajectory of the cloud gaming market suggests an evolution ahead. As AI technology deepens its roots, its integration into gaming should transcend current boundaries. We can anticipate a shift from basic applications like chatbots to advanced AI-infused characters, possibly giving rise to digital athletes in sports simulations. Merged with advancements in VR/AR, these innovations could offer gaming experiences that mirror real-world interactions,” Krishan Deegalla, founder and CEO, Meta11, an AI-based online fantasy cricketing platform, concluded.
