Computer and video games are continuously evolving. According to Newzoo forecasts, by 2023 the number of gamers 3 billion.
The share of the cloud gaming market is also growing — experts estimate that the compound annual growth rate (CAGR) of this sector will exceed . In terms of financial indicators, the market volume by 2025-2026 will reach around $3-6 billion. The pandemic is not slowing down but rather accelerating the development of the entire industry. Currently, several stable trends have formed in the sphere of cloud gaming, which will strengthen in the near future. More about them below.
5G and Cloud Gaming
The bandwidth of wireless networks and latency are the main factors affecting game quality since data is processed in the service's data center, after which the finished video stream is transmitted to the user's device. The better the connection, the smoother the image and higher the resolution. If good quality could previously only be achieved with an Ethernet connection, mobile broadband is gradually freeing players from wires.
With the emergence of 5G, cloud gaming is becoming more accessible. Fifth-generation networks allow services like Google Stadia and Playkey to run not only on PCs and laptops but also on mobile devices in any region with 5G coverage. Gamers can now play AAA titles while on their way to the airport, in a café, or simply on a park bench if they desire. In fact, mobile devices put millions of gaming gadgets in users' hands. Already, the number of mobile gamers exceeds 2 billion, and over time their numbers .
Commercial 5G networks are already operational in South Korea, certain regions of China, and Japan. Other countries are actively developing fifth-generation mobile infrastructure. All of this contributes to the active development of cloud gaming.
The Arrival of Major Players
Cloud gaming the world's largest companies, including Microsoft, Google, Amazon, Nvidia, Sony, Tencent, and NetEase. The number of market participants is increasing. For example, Amazon is set to launch its own gaming platform “Project Tempo” this year.
The cloud gaming niche is rapidly expanding in Asia. In March 2020, Sanqi Interactive Entertainment and Huawei Cloud agreed to jointly develop a cloud gaming platform.
Russia is also keeping pace. Currently, the following are available in the country:
- GeForceNow.
- Playkey.
- Loudplay.
- Megadrom.
- Power Cloud Game.
- Drova.
These services collaborate with both Russian and foreign operators, including Beeline, MegaFon, MTS, Tele2, and others. They are investing significant resources in the development of cloud gaming. Joint projects are being implemented to gradually improve service quality while expanding their capabilities. There is still work to be done, but the progress is evident.
I previously wrote about the capabilities, advantages, and disadvantages of Russian cloud gaming services. .
The cost of the latest generation gaming PCs and consoles
is quite high. Of course, not every gamer can afford a system priced at $4000-$5000. On average, gamers spend $800-1000 to purchase or upgrade a gaming system. But even that is a lot. High prices for gaming equipment deter millions of gamers. According to experts, about 70% of potential buyers of gaming computers or laptops do not have the desire or ability to purchase what they would like to have. As a result, the specifications of 60% of personal computers fail to meet the resource requirements of AAA games. If the prices for powerful gaming systems were reduced, the market would immediately gain millions of new players.
Here, cloud gaming services come to the rescue, allowing users to avoid unnecessary expenses on computer hardware or consoles. To play those AAA-class games, you only need the appropriate service, an affordable PC, laptop, tablet, or smartphone, good internet, and a controller or keyboard.
Games as a service
Thanks to the abandonment of 'hardware', cloud gaming has virtually no entry barrier. A new model of consuming gaming content is forming. Additionally, a new class of games, cloud-native, is evolving, which are specifically created for cloud platforms and do not have hardware requirements. A prominent representative of this niche is Fortnite.
With the shift away from hardware, cloud gaming has virtually eliminated the entry barrier. A new model of consuming gaming content is emerging. Additionally, a new class of games, cloud-native, is being developed, specifically designed for cloud platforms and with no hardware requirements. A prominent representative of this niche is Fortnite.
Cloud gaming services are doing everything possible to simplify content access for players. For example, Google combines YouTube and Google Stadia. Thus, YouTube showcases game streaming. To join the process, you just need to click a button. No downloads or purchases are necessary — just click the 'join' button and start playing. This model has its own name — click to keep play.
An example of integration in the Google Stadia demo with the NBA 2K live stream.
Once in the game, users immediately immerse themselves in a friendly environment where they can not only play but also communicate with 'colleagues.' Gradually, games are becoming social networks of their own.
Expanding the audience of cloud gaming.
Just a few years ago, a user wanting to play cloud games had to be relatively tech-savvy. Downloading a client, setting it up, selecting a server — this was a complex task for some users. Now, you can start a cloud game literally in a couple of clicks.
The audience for cloud gaming is gradually expanding, with an increasing share of young players. In January 2020, the share of players under 20 was By late May to early June, this figure had doubled. This may have been influenced by the shift to remote learning for students. With more free time, students began spending it on games. after the introduction of the lockdown, gaming traffic surged by 70% compared to the same period last year. In Russia, the number of players during the quarantine while the revenue for cloud service providers skyrocketed by 300%.
Overall, the 'Netflix for gaming,' as the cloud gaming industry is called, is developing more actively day by day. The progress is noticeable, and the industry's development will not be halted by pandemics or potential economic issues. The key for services is to enhance their technical aspects while ensuring a variety of available game titles and a low entry threshold for users of all ages and technical backgrounds.
Source: habr.com
