How Cloud Gaming Will Take Over The Industry

Cloud technology is one of several recent advances that have opened up new business possibilities, including in the world of iGaming. As we explore below, it may become the dominant force in this sector.

What Exactly is Cloud Gaming?

Xbox (Microsoft) and PlayStation (Sony) have been duking it out over the console gaming space for decades now, but this battle is not restricted to consoles and discs anymore. Curiously, this would mirror the way that NFTs have, to an extent, replaced physical editions of art. Where consoles are tangible, the cloud is intangible and all around us. Instead of requiring specific hardware, cloud gaming enables players to play their games via streaming to any compatible internet-connected device. Because the game is played on a remote server but accessed via a player’s device, it offers immediacy without the costly hardware requirements. Unsurprisingly, this has been compared to TV live-streaming services. Cloud gaming has huge potential, though the tech remains in a relatively early stage of development.

For the most part, cloud gaming operates on a subscription model with a monthly fee. This approach has also proved popular with console and disc players. For those who want to play a game once and move on, it can be far more cost-effective than buying physical or digital copies of a game. However, for those who sink their teeth into a game for hundreds or thousands of hours, whether that’s a lengthy RPG like Skyrim or a strategy game like Civ VI, it may be cheaper to opt for single-game purchases than a subscription.

That’s not to say missteps can’t happen, of course. The now-defunct Google Stadia proves that while advanced technology, including cloud gaming, opens up new possibilities, more is needed to guarantee their success. Any technology implementation has to make sense in the current and future business landscape. Stadia’s problem was that it did not offer a superior model to existing options (as players already owned consoles and PCs) and had its own set of drawbacks, not least charging full price to stream a game rather than own it. As such, consumer interest was lower than desired and, in the end, the project got canned.

Advantages of Cloud Technology in Gaming

Both Xbox and PlayStation already offer subscription services which are very popular with players, especially those who adopt a broad but shallow approach. Subscriptions are not ideal if you want to sink two thousand hours into a game Manual, but if you prefer a one-and-done approach, they are just the ticket. And the shift from a subscription model with a physical console to one without is a relatively small step (although those who have forked out a small fortune for the latest consoles are unlikely to ditch them immediately).

Another big advantage is that a gaming collection can become stable over time across multiple devices. While this has existed on PC, the cloud enables this to occur across various devices (including smartphones, which many people own for social or professional reasons).

New technologies, including the cloud, smartphones, and live-streaming, have helped make online entertainment more accessible and flexible. Players in Europe can easily play video games online, or have fun at the leading EU online casino. There is an abundance of offshore operators that provide users with amazing games, casino bonuses, and whatnot. Increased revenues inevitably accompanied the migration from offline to online gaming. As hardware and software innovation grows, casino gaming becomes more popular. Therefore the European online iGaming market is expected to grow.

For both video games and games of chance, cloud gaming can add to the increasingly wide selection of monetization avenues. Operating on the service/subscription model, which was growing organically via Xbox/PlayStation anyway and proven viable by TV streaming services, cloud gaming may eventually surpass the income potential of the traditional buy-and-own model.

Rising Price of Europe’s Public Cloud

While cloud technology is one of the most useful advances in recent years, it is not immune to the current economic state of affairs (in much the same way as soaring energy prices has affected the viability and attractiveness of Bitcoin mining). With both the cost of borrowing and energy prices firmly on an upward trajectory, the cost of public cloud prices is expected to rise significantly in Europe (the current forecast is for prices to increase by a third or thereabouts). A higher interest rate increases borrowing costs and capital expenditure for buildings and tech equipment. At the best of times, extending the cloud infrastructure is expensive, let alone when the world (especially Europe) finds itself in turbulent economic waters. However, investment in technology, especially financial technology, remains essential for economies seeking to maintain their competitive standing internationally. It benefits individuals who want to take advantage of business and leisure opportunities, thereby opening up.

Expectations for the Future – Was Stadia Just too Soon?

An intriguing question regarding Stadia’s failure is whether the technology was ready, but the public was not. One of cloud gaming’s biggest advantages is that it makes expensive (and sometimes hard-to-find) consoles and PCs unnecessary. But the world in which Stadia arrived already had gamers who, by and large, owned said hardware. So the theoretical saving did not exist in reality. Stadia didn’t get everything right (games were overpriced because they weren’t owned), but the basic approach might work.

Stadia also struggled with its games library compared to other options. It’s not that it was bad. It’s just that alternatives had more (multi-platform titles plus exclusives). However, a cloud gaming platform by Microsoft or Sony could easily become a big player in the future. It might even be that Xbox and PlayStation continue to wrestle for dominance in cloud gaming, with consoles going on the back burner or eventually fading away altogether.

Cloud technology is already making significant inroads into gaming. In the future, there’s every chance it will become a dominant force in the industry.