Will Cloud Gaming & Streaming Replace Consoles ?
Whoever you are, you have undoubtedly heard of the Cloud. This is because storing files and servers on the Cloud can free up space to increase internet speed and the ability to stream larger files. This will help tech of all kinds become more accessible. One of the industries that will greatly benefit from this tech is video gaming. Not only will Cloud-based gaming eliminate the need for large hardware, it will provide the ability to stream games like movies or shows. This will help grow an already huge market.
The market of video games continues to grow. In 2018, the industry grossed $138 billion. Last year, it grew to over $150 billion. Predictions for future years show the growth not slowing down at all. This year, gaming is expected to have a revenue of $164 billion. The years after that will make $178 billion in 2021 and $196 billion in 2022. This growth is due to a lot of things, but the ability to play games anywhere, on any device, is undoubtedly a factor.
With the PlayStation 5 and Xbox 2, this might be the last big generation of hardware gaming. This is because the industry is moving to the Cloud. Cheap local boxes could provide access to the high-end games streamed on servers on the Cloud. The shift is quick to a streaming-centric gaming market might seem hard to believe from the vantage point of 2018.
With broadband increasing by almost six times in ten years. In ten more we could see another order of magnitude increase in the average bandwidth. This combined with the technology to combat apparent latency, games that run off a server farm could be indistinguishable from the ones running in the same room.
Streaming & Mobile Gaming
With the servers running on the Cloud, streaming will become a very enticing method for playing games. Game manufacturers are creating their own streaming services to charge customers to play. This will enable people to play games from anywhere on any device. This means that you can play the same game on your computer, tablet, or phone.
The market for mobile games is now the largest segment of the gaming industry in general. The game market was valued in $68.5 billion in the year 2018. Almost $55 billion of this comes from smart phones. Comparatively, tablets take up a much smaller fraction, 13.6 billion from tablets. For the next few years, the mobile gaming market is growing while PC and browser-based games will diminish.
Most of the revenue is coming from iOS devices, but Android is set to overtake Apple’s platform before the year 2023. The highest-grossing iPhone game in the US is Fortnite by daily revenue. Microsoft is one of the biggest games in the industry, the Xbox and its games will likely become a streaming service. It is no surprise, they are trying to optimize their product.
Most game revenue actually comes from in-app purchases. According to MoneyPug, the site that is known for finding the best mobile phone deals, over 40 percent of the grossed revenue comes from digital purchases and this will increase as the ability to buy games in apps. It will become the norm to buy games in these apps.
The Future of Gaming Technology
Gaming is one of the leaders of technology. While virtual reality is struggling to gain real traction as 5G slowly becomes available, augmented reality is expected to overtake VR by next year. One reason is that the user base will grow at a higher rate. Games are expected to remain the main use of both VR and AR. Millions of people will embrace their use for watching live events and video entertainment. With the ability to stream high quality games anywhere, on any device, games will be able to integrate more sophisticated technologies.
With these developments, the gaming market will continue to grow. The industry will make more and more money, and it is not expected to stop. Multiplayer gaming is here to stay, and streaming will only facilitate this. Gamers will get to play with anyone around the world on whatever device they happen to have with them at the time. If you’re into gaming or not, it is an interesting development that will actually change the technology industry and the way people relate to each other when they are playing games.