Cloud News & Insights

The Future of Gaming Consoles Lies in the Cloud

Male gamer sitting on a couch

The ever-growing demand for cloud gaming is making more and more game developers turn to cloud computing. Recent research and analysis offered by multiple companies on cloud computing trends indicates rapid growth of this technology. The increasing popularity of cloud gaming has raised a few questions: Is this cloud-based gaming segment a threat to the future of video gaming consoles? Speculations are on the rise because every game hardware manufacturing company is getting closer to becoming a cloud-based gaming company.

The recent acquisition of Gaikai by Sony is an example of this new trend. Microsoft has been keen to take over OnLive cloud gaming company. However, this acquisition still remains in the rumor stage. Under such conditions, we’re very curious to know what lies ahead in for the industry.

The future of gaming consoles

Sony’s acquisition of Gaikai creates an entirely new scenario in the gaming industry. In a traditional gaming setup, hardware consoles like the Sony PSP are powered with high-end GPUs to offer seamless entertainment for gaming lovers. While the initial cost of the hardware is not expensive, the purchase of games and licenses increases your overall expenditure. The entrance of cloud computing technology into the gaming segment has changed hardware configurations. Companies like OnLive and Gaikai are able to host powerful GPU resources in the cloud to offer seamless entertainment to users.

Gaming consoles to media centers

Another concern for the gaming console market is the entrance of high-end mobile gadgets into the gaming arena. Android and iOS games are becoming increasingly popular. Amid this fierce competition, gaming consoles have to come up with innovative features. To stay in the competition, consoles are turning into media centers and entertainment boxes. Netflix Applications and Xbox Music are some examples of this changing trend. Though this is a good marketing strategy by gaming hardware manufacturers, competing against cloud technology is not easy.

While cloud-based gaming services offer seamless entertainment, not every gamer has a high-speed internet connection. To overcome this challenge, gaming companies are coming up with new business models that combine the power of gaming consoles with the scalability of the cloud computing network. Free to Play (F2P) is a new model in the gaming segment. There are no subscriptions or monthly charges. These companies make money when users purchase additional features to facilitate an enticing gaming experience. Whatever the business model, one thing is for sure: Gaming consoles will be missing their high-end hardware, and cloud-based gaming is going to dominate the gaming industry very soon.

It is a win-win situation for game developers as well as users. While game developers get the flexibility to incorporate innovation into games, users enjoy cost-effective plans. Every gaming company needs to adapt to changing trends to stay in the competition. Presently, there is no threat to the video gaming console market. However, with more and more game developers turning to the cloud, the future for hardware consoles looks bleak.

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About the Guest Author:

Kaushik Das

Kaushik Das is an engineer, research analyst and a technical writer in the areas wireless, IT, enterprise software, next-generation hosting, storage and renewable energy. He specializes in competitive analysis, market research, industry insights, white paper and actionable web content development.

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