Is the future of gaming in the cloud?

Cloud gaming is beset by problems – but could it have a bright future? Join us as we explore the topic.

Once upon a time, the future of business, government and leisure all lay in the cloud. Today, that future is here.

From healthcare to manufacturing, from Netflix to NASA, the cloud has transformed the way we do things. The ability to access workloads from any device in any location has unlocked opportunities and cost savings with startling rapidity.

But what about gaming? In an industry that's embraced VR and handheld gaming PCs, you'd have thought that the cloud and gaming would go together like Laurel and Hardy. But in fact, the picture is mixed.

Cloud gaming is on the market – but it's not doing as well as you might expect. In this article, we analyse the reasons for this and ask whether things could change over the coming years.

What is cloud gaming?

"The cloud" is a term that covers any software that can be accessed remotely. If you're watching Netflix, you're watching content on the cloud. If you check your work emails on the train, you're accessing the cloud.

Cloud gaming, then, is any game that can be streamed to any device you own. You don't need a PC, Xbox or other chunky console cluttering up the place. With cloud gaming, you can play your favourite games on your smart TV, tablet or even phone.

The elevator pitch goes something like this: why be tied to one device? Liberate yourself from the tyranny of hardware. Let's do for gaming what Netflix and Amazon Prime have done for TV and films. Let's make gaming accessible, inclusive, flexible and affordable.

It's been rolled out by Google Stadia (now shuttered), Xbox Game Pass, PlayStation Now and others. While some people swear by it, others point to limitations.

It could be that one day consoles and PCs will go the way of DVDs. In the meantime, however, cloud gaming is a mighty engine that's not quite getting started. 

What are the limitations of cloud gaming?

Games are complicated things. To run smoothly, they need super-fast internet and a super-high bandwidth. Without these resources, frame rates suffer and your playing experience becomes beset with glitches.

This is related to the very nature of the cloud. The cloud is run off data centres that are, by definition, far away from your device. It takes time for the data to get from one place to another. This can lead to latency, crummy visuals and unwanted artefacts.

Another drawback is that cloud gaming platforms are limited in their offerings – especially when placed side by side with PCs and consoles. In an age where people expect limitless choice, cloud gaming can seem behind the times.

That's the state of play at present. However, it was once the case that films and TV shows were too resource-hungry to be streamed without buffering every three seconds. Today, you can watch Twilight on a mountaintop with crystal-clear quality.

If these advances can be made in film and TV, can't they be made in gaming, too?

What's the future of cloud gaming?

Despite the complaints that you'll commonly hear about cloud gaming, the market itself is set to grow substantially. One estimate forecasts a market value of $143.4 billion by 2032 – giant steps ahead of its 2023 value of $5 billion.

The same study suggests that the cloud gamer population will grow too, reaching 29.8 million users in 2024:

"This growth is distributed across major geographical reasons, with North America leading at 17.3 million users… Europe follows with 8 million users…. The Asia Pacific region, with 3.6 million users, reflects the growing penetration of cloud gaming in markets with high smartphone usage and improving internet infrastructure."

This mention of infrastructure points to a factor that could make or break cloud gaming. At present, the infrastructure is often not good enough to provide lag-free gaming. But as the tech develops, so too could the fortunes of gaming on the cloud.

How hopeful should we be? Well, one pertinent piece of information is that the gaming industry in 2023 made more money than the music and movie industries combined. With profits of these sizes splashing around, you can be sure that hefty sums will be poured into research and development.

This has the potential to benefit the world of cloud gaming in two ways. First, it can improve the backend necessary to make streaming as smooth as a PC or console.

Second, it could mean that the available library of games will increase. This is likely to entice potential gamers who are currently unimpressed by a perceived lack of variety.

Developments in Xbox Cloud Gaming

Xbox Cloud Gaming lets you stream games to your console or other devices. However, it only lets you stream titles from the Game Pass library – not the full plethora of your "owned games".

This, however, is set to change in 2024. Microsoft Gaming CEO Phil Spencer was asked on Reddit: "Any word or update on being able to play my owned games on Xcloud?

Spencer replied: "Should be this year."

This hasn't been corroborated by an official statement but does suggest that one common pain point could be fixed sooner rather than later.

Netflix Games

Netflix is one of the cloud's biggest success stories in the entertainment industry – so it's perhaps no surprise that it's putting a lot of time, money and energy into video games.

The streaming platform has already explored interactive titles including Carmen Sandiego and Black Mirror: Bandersnatch. And, since 2021, subscribers have been able to play some mobile games free of charge.

Then, in 2023, it launched tests for cloud-streamed games, allowing users to play titles on their devices.

It's unclear whether it will catch on – but it does show a commitment to cloud gaming from one of the entertainment industry's biggest players.

Conclusion

Despite its teething problems, cloud gaming is likely to improve in the coming years. If all goes well, it could be another glowing advertisement for the cloud's flexibility, versatility and cost-effectiveness. We'll keep you posted…

Are you looking for a managed cloud migration service ? At Ascend Cloud Solutions, we know the VMware SDDC like the backs of our hands. Get in touch today for a no-obligation consultation.