Cloud Gaming Is Changing the World of Games as We Know It

Throughout 2020 and 2021, video gaming has become an increasingly important part of everyday life for people around the globe. While more gamers are stepping into the virtual worlds of video games, one trend has begun to take shape: cloud gaming is on the rise and seems set to change the way we play games for good. The cloud gaming industry, though still in its infancy, has been gaining traction, with engagement and spending on the new services growing significantly. Newzoo, a leading provider of games and esports data, did an extensive analysis on the subject, examined the cloud gaming market today, how it got there and where it might be heading. Is cloud gaming just a fad, or could it be the future of gaming?

Playing without a download

Cloud gaming allows users to play games via the internet, streaming content from the cloud onto their devices rather than downloading a game. Although the cloud gaming trend is still a new one, the option to access games online without downloading them has already been around for a while, as browser games clearly show. While it used to be a place for casual mini-games, the variety of browser games has grown immensely. It is a common platform for classic games, as Catan Universe shows, the browser game based on the famous board game. This is also evident in the iGaming genre, with many online casinos offering a wide variety of casino games on the web. Table games such as roulette, baccarat, and blackjack as well as slots, bingo, and more can now easily be accessed in the browser on computers and mobile devices without having to wait for a download first. With continuous technological advancements, even complex games such as the MMORPG Dragon Awaken or the real-time strategy game Starborne: Sovereign Space can now be played in a browser. Cloud gaming, however, is taking this to the next level, allowing users to play console games without the need for a download on almost any device.

Cloud gaming records massive growth

Google was the first player on the market, launching their cloud gaming service Google Stadia in 2019. Many companies followed suit, with most of the big tech businesses jumping on the bandwagon. With NVIDIA’s GeForce NOW, Microsoft’s Xbox Game Pass Ultimate, Amazon’s Luna, Facebook Gaming, and more, the cloud gaming ecosystem is growing steadily. As cloud gaming has been getting more attention, both businesses and players are showing increasing interest. If the trend continues as it has, Newzoo estimates that there will be 23.7 million paying cloud gaming users by the end of the year. This number is estimated to increase to more than 60 million users by 2024. The total cloud gaming revenue is supposed to reach almost 1.6 million dollars by the end of 2021 and is estimated to pass the 6.5-billion-dollar mark in 2024. It’s a transformative time for the market as it is slowly but surely taking off, attracting businesses, content creators, and gamers alike.

Huge potential for the future

When Google Stadia first launched in 2019, it fell short of the huge expectations Google had raised. However, a lot has happened since then, with continuous technological enhancements and a greater variety of services and games improving the cloud gaming experience. As more of the technological hurdles are overcome and cloud gaming services further improved, the market is likely to grow more. Widespread internet availability and proliferation of smartphones around the world, as well as enhancements in 5G network services, are expected to drive cloud gaming growth and increase demand. Cost-effectiveness, convenience, and the ability to access games through the cloud on almost any device make cloud gaming an increasingly attractive alternative to traditional consoles and PCs. By eliminating the need for high-end gaming equipment, cloud gaming is likely to attract more casual gamers who don’t want to buy expensive gaming hardware. The shortage of the new gaming consoles PS5 and Xbox Series X and S, due to the unavailability of certain components, could likely drive cloud gaming growth even further.

Although cloud gaming is still a relatively new market, it has seen massive growth throughout the last two years and is likely to continue to do so well into the future. According to estimations by Newzoo and as the current developments suggest, it seems cloud gaming is here to stay and might just change the way we play games for good.