What does cloud gaming cost to build: trends for the near future

What does cloud gaming cost to build: trends for the near future
Computer and video games are constantly evolving. According to Newzoo forecasts, by 2023 the number of gamers be 3 billion

The share of the cloud gaming market is also growing - according to experts, the cumulative annual growth rate (GAGR) of this area until 2025 will be more 30%. If we talk about financial indicators, then the market size by 2025-2026 will reach about $ 3-6 billion. The pandemic does not slow down, but accelerates the development of the entire industry. There are several steady trends in the field of cloud gaming that will intensify in the near future. More about them - under the cut.

5G and cloud gaming

The bandwidth of wireless networks, delays are the main factors that affect the quality of the game, since the data is processed in the data center of the service, after which the finished video stream is transmitted to the user's device. The better the connection, the smoother the picture and the higher the image resolution. If earlier it was possible to achieve good quality only with an Ethernet connection, now mobile broadband Internet is gradually freeing players from wires.

With the penetration of 5G, cloud gaming is becoming more accessible. 5G networks allow you to run services like Google Stadia and Playkey not only on PCs and laptops, but also on mobile devices in any region where there is 2G coverage. Gamers have the opportunity to play AAA titles on the way to the airport, in a cafe, and just on a bench in the park, if such a desire arises. In fact, users of mobile devices have millions of gaming gadgets in their hands. Already now the number of mobile gamers exceeds XNUMX billion, and over time their number will only grow.

What does cloud gaming cost to build: trends for the near future

Commercial 5G communications are already operating in South Korea, some regions of China, and Japan. Other countries are actively developing fifth generation mobile network infrastructure. All this contributes to the active development of cloud gaming.

Arrival of big players

Cloud games got interested the largest companies in the world, including Microsoft, Google, Amazon, Nvidia, Sony, Tencent, NetEase. There are more and more market participants. For example, Amazon promised launch its own gaming platform “Project Tempo” this year.

The niche of cloud games in Asia is actively expanding. So, in March 2020, Sanqi Interactive Entertainment and Huawei Cloud agreed to jointly develop a cloud gaming platform.

Russia is not far behind. Currently available in the country:

  • GeForceNow.
  • playkey.
  • Loud play.
  • Megadrom.
  • Power Cloud Game.
  • Drova.

Russian and foreign operators cooperate with these services, including Beeline, Megafon, MTS, Tele2 and others. They are investing heavily in the development of cloud gaming. Joint projects are being implemented that gradually improve the quality of services, while expanding their capabilities. There is still work to be done, but progress is clear.

On the possibilities, advantages and disadvantages of Russian cloud gaming services, I wrote earlier.

Clouds, consoles and expensive hardware

The cost of gaming PCs and consoles of the latest generations very high>. So, the cost of low-end gaming systems is $300-400. The cost of top models that are able to cope with even the most “heavy” game is an order of magnitude higher.

Of course, not every gamer can afford to buy a system for $4000-$5000. On average, a player spends $800-1000 to purchase or modify a gaming system. But that's a lot too. High prices for gaming equipment scare away 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 receive. As a result, the characteristics of 60% of user PCs fall short of the resource requirements of AAA-class games. If the cost of powerful gaming systems fell, the market would immediately receive millions of new players.

What does cloud gaming cost to build: trends for the near future

And here cloud gaming services come to the rescue, allowing you to avoid unnecessary spending on computer hardware or consoles. To play those same AAA-class games, you only need the appropriate service, an inexpensive PC, laptop, tablet or smartphone, good internet and a controller or keyboard.

Games as a Service

With the elimination of hardware, cloud gaming has virtually no barrier to entry. A new model of game content consumption is being formed. In addition, a new class of games is being developed, cloud-native, which are initially created for cloud platforms and which do not have hardware requirements. A prominent representative of this niche is Fortnite.

Cloud gaming services go out of their way to make it easy for players to access content. For example, Google combines YouTube and Google Stadia. So, YouTube demonstrates the broadcast of the game. In order to join the process, you just need to click on the button. You don't need to download or buy anything - just click on the "Join" button and play. This model got its own name - click to keep play.

What does cloud gaming cost to build: trends for the near future
Integration example in Google Stadia demo with NBA 2K livestream​

Having entered the game, the user immediately plunges into a friendly environment where you can not only play, but also communicate with your “colleagues”. By the way, games are gradually socialized, turning into a kind of social networks.

Expanding the Cloud Gaming Audience

Just a few years ago, a user who wanted to play cloud games had to be quite tech-savvy. Downloading a client, setting it up, choosing a server is a difficult task for some users. Now you can start a cloud game in just a couple of clicks.

The audience of cloud gaming is gradually expanding, the share of the young audience is increasing. So, in January 2020, the share of players under 20 was close to 25%. Already in late May - early June, this figure doubled. Perhaps this was influenced by the transition of students and schoolchildren to distance learning. There was more free time, and students began to spend it on games. According to Telecom Italia, after the introduction of the self-isolation regime, gaming traffic increased by 70% compared to the same period last year. In Russia, the number of players during the quarantine increased by 1,5 times, but the revenue of cloud service providers increased immediately by 300%.

In general, “Netflix for gaming”, as the cloud gaming industry is called, is growing day by day. Progress is noticeable, the development of the industry will not be stopped by either pandemics or possible economic problems. The main thing for services is to develop the technical side, not forgetting the variety of available game titles and the low entry threshold for users of any age, with any technical knowledge.

Source: habr.com

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