When we talk about cloud gaming on Xboxsquad, very naturally we are talking about the service offered by Xbox. If the program is a must in the sector, it is not the only one in this field. Today, we offer you a dive into this market which has been booming since 2019. Cornerstone of Microsoft to achieve its goal of “reaching two billion players”, the sector seems to have reached its inflection point. By this expression, it must be understood that the technology behind it is viable, allowing the market to move into the adoption and democratization phase.
Nearly 22 million players for 1.5 billion dollars
The latest figures from the sector give us a first image of the market. In 2021, an estimated 21.7 million gamers spent money to play or access content on a cloud title. Nearly 1.5 billion dollars have been generated thanks to these. A tidy sum that is more than double the amount of the previous year. Analysts are also confident and predict that the market will reach a valuation four times higher by 2024.
The remote game ecosystem has been slowly developing in its own corner since 2019. Publishers, both large and small, are embarking on the adventure every day. And if the Xbox Game Pass is an actor that immediately comes to mind, we can see that the sector is much larger than we think.
New trends not limited to mobile
As we can see, many still unknown players are trying new approaches to assert their place. What must be remembered is that the issue is not limited to mobile. Indeed, the very idea behind cloud gaming is based on being able to reach the Internet user wherever he is, on the medium of his choice. This is why some players like Tencent or Samsung are focusing on the offer of connected televisions. Ivan Schvaichenkoat the head of Boosteroid, has signed several partnerships with manufacturers to develop its offer:
We’ve also partnered with a number of TV manufacturers (the most recent deals were with Philips and TCL) to allow PC games to be streamed directly to TVs without consoles. Finally, we discuss B2B cloud gaming projects with hotels, airports, transport companies and many other potential partners that people don’t necessarily think of when it comes to cloud gaming.
What we quickly notice on this infographic is the presence of companies whose names we discover, but also the absence of major media players such as Disney, Warner Bros and others.
We easily assimilate new technologies in the imagination with regions such as North America, Europe or even East Asia (Japan or South Korea). However, we see that the majority of the user base is located in Southeast Asia (Philippines, Thailand or Indonesia) and Latin America. The question therefore rests more on the habits of consumption of the medium rather than on the standard of living of the country. On the other hand, the quality of hardware in data centers is an important factor. A real criterion of differentiation, each service does not offer the same technical characteristics. Depending on the provider, the experience may range from perfectly smooth to memories of a 56K modem. Microsoft and Nvidia have, as such, made significant investments in this segment, which is the responsibility of service providers and not of users.
Accessibility and Convenience
The pandemic has made it possible to highlight three main modes of consumption of the format:
- Discover visually demanding games without worrying about the hardware issue
- Play game demos before downloading them
- Reduce the storage occupied by high-definition games
However, the argument that stands out the most from the Newzoo study is the ease of access to cloud gaming. Several industry representatives spoke as Benjamin Athuilpresident of CareGame, which designs a solution for mobile operators and developers:
[…] We want to give all mobile gamers access to the games they love, regardless of smartphone, connection or budget. No one should be left behind. Games should not be reserved for the privileged. This is our mission.
While the news suggests a bright future, the picture is never pristine white. Of course, there are still challenges to overcome. In particular, that of finding the balance between technical performance, flexibility and cost. Several players have already paid the price, as was the case in Germany with the operator Deutsche Telekom. However, the arrival of technology on connected TVs, consoles and broadcast stick shows that the future is quite bright.
What place do you give to cloud gaming?
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