Computer and video games are developing steadily. According to Newzoo forecasts, the number of gamers will reach 3 billion by 2023. The
share of the cloud gaming market is also growing - according to experts, the compound annual growth rate (GAGR) of this area will be more than 30% until 2025 . If we talk about financial indicators, the market volume 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 strong trends in cloud gaming that will intensify in the near future. Read more about them under the cut.
5G and cloud gaming
The bandwidth of wireless networks, latency are the main factors that affect the quality of the game, since the data is processed in the service data center, 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. Whereas earlier it was possible to achieve good quality only with an Ethernet connection, now mobile broadband Internet is gradually freeing players from wires.
With 5G penetration, 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 have the opportunity to play AAA titles on their way to the airport, in a cafe, and just on a bench in the park, if such a desire arises. In fact, the users of mobile devices have millions of gaming gadgets in their hands. Already, the number of mobile gamers exceeds 2 billion, and over time, their number will only grow .
Commercial 5G communications are already operating in South Korea, some regions of China, and Japan. Other countries are actively developing the infrastructure of fifth generation mobile networks. All this contributes to the active development of cloud gaming.
The arrival of major players
The largest companies in the world are interested in cloud games , including Microsoft, Google, Amazon, Nvidia, Sony, Tencent, NetEase. The number of market participants is growing. For example, Amazon has promised to launch its own gaming platform “Project Tempo” this year.
The niche of cloud gaming 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 lagging behind either. Now available in the country:
- GeForceNow.
- Playkey.
- Loudplay.
- 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 simultaneously expanding their capabilities. There is still work to do, but progress is evident.
I wrote earlier about the possibilities, advantages and disadvantages of Russian cloud gaming services .
Clouds, consoles and expensive hardware
The cost of the latest generation gaming PCs and consoles is 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 "difficult" game is much higher.
Of course, not every gamer can afford to purchase a system for $ 4000- $ 5000. On average, a player spends $ 800-1000 to purchase or modify a gaming system. But that's a lot. High prices for gaming equipment scare off millions of gamers. According to experts, about 70% of potential buyers of gaming computers or laptops do not have the desire or opportunity to purchase what they would like to get. As a result, 60% of consumer PCs do not meet the resource requirements of AAA-class games. If the cost of powerful gaming systems were to come down, the market would immediately get millions of new players.
And this is where cloud gaming services come to the rescue, allowing you to avoid unnecessary spending on computer hardware or consoles. To play those very AAA-class games, you only need an appropriate service, an inexpensive PC, laptop, tablet or smartphone, a good Internet connection and a controller or keyboard.
Games as a service
Due to the abandonment of hardware, cloud gaming has virtually no entry threshold. A new model of consumption of game content is being formed. In addition, a new class of games, cloud-native, is developing, which are initially created for cloud platforms and have no hardware requirements. Fortnite is a prominent representative of this niche.
Cloud gaming services are committed to making it easier 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 anything, buy - just click on the "join" button and play. This model got its own name - click to keep play.
An example of integration in the demo version of Google Stadia with NBA 2K livestream
Having entered the game, the user is immediately immersed in a friendly environment, where you can not only play, but also communicate with “colleagues”. By the way, games are gradually being socialized, turning into a kind of social networks.
Expanding the audience of cloud gaming
Just a few years ago, a user who wanted to play cloud games had to be technically savvy enough. Downloading a client, configuring it, choosing a server is a difficult task for some users. Now you can start a cloud game in just a couple of clicks.
The cloud gaming audience is gradually expanding, the share of a young audience is increasing. So, in January 2020, the share of players under 20 was close to 25% . Already at the end of May - beginning of June, this figure doubled. Perhaps this was influenced by the transition of students and schoolchildren to distance learning. Free time increased, and students began to spend it on games. According to Telecom Italia, after the introduction of the self-isolation regime, game traffic grew by 70% compared to the same period last year. In Russia, the number of players during quarantine increased by 1.5 times , but the revenue of cloud service providers grew by 300% at once.
In general, "Netflix for gaming", as the cloud gaming industry is called, is growing more and more actively day by day. Progress is noticeable, the development of the industry will not be stopped by pandemics or possible economic problems. The main thing for services is to develop the technical side, not forgetting about the variety of available game titles and a low entry threshold for users of any age, with any baggage of technical knowledge.