A large installed base of cloud gaming capable devices, big brand names entering the cloud gaming market, and improving network performance will drive cloud gaming to new heights in 2015, according to the Strategy Analytics report, NVIDIA Goes off the Grid with Cloud Gaming Service.
“2014 is proving to be a watershed moment with major players putting their credibility and brand names on the line to make cloud gaming work,” said Michael Goodman, Director of Digital Media Strategies and co-author of Strategy Analytics’ gaming study. “While broadband speeds and consumer acceptance of subscription models have come a long way, access to content remains an issue for all services. The major video game publishers have so far successfully managed an incremental transition from physical to digital media, but cloud gaming offers publishers a new revenue stream.”
Key findings in the gaming study include:
- PlayStation Now and NVIDIA Grid Game Streaming Service will reach nearly 30 million devices by year-end 2014 and will grow 500% to almost 150 million by year-end 2015.
- Game streaming is more resource intense and lag-sensitive than OTT video streaming, so cloud gaming companies must be mindful of acceptable trade-offs in quality of experience and network performance requirements in order to reach a significant portion of the market.
- Primarily to support and profit from backward compatibility, Strategy Analytics expects other major players in the gaming industry to jump into the cloud gaming market once Sony or NVIDIA craft a successful pricing strategy.
“As Sony and NVIDIA launched cloud gaming services this year, the addressable market of traditional gaming devices already covers nearly 30 million devices,” added Eric Smith, Analyst of Connected Home Devices. “This is set to increase fivefold in 2015 to nearly 150 million devices as PlayStation Now enters Europe and we expect NVIDIA to allow GeForce GPU equipped PCs access to Grid.”
Strategy Analytics, Inc. provides advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.