Cloud Gaming Market to Exceed $0.5 Billion This Year, Growing to $4.8B by 2023
The cloud gaming market forecast for 2020 has been upgraded by Newzoo. According to the games industry research firm, almost $585 million in revenue will be generated this year, while the cloud gaming market as a whole is poised to vastly grow up to $4.8 billion by 2023. Beyond that, the current projection suggests even bigger growth.
In a press release, Newzoo explained that the catalysts for the upgraded forecast were the revenue increase due to COVID-19 lockdown measures as well as Microsoft's decision to bundle Project xCloud with Xbox Game Pass Ultimate at no additional cost, which is expected to promote further uptake than if it came with an extra premium charge.
Critically, while big companies such as Microsoft, Google, NVIDIA, and Sony have grabbed the spotlights with their services for the cloud gaming market, there are plenty of smaller players as well within the same ecosystem, albeit servicing different niches.
Newzoo shared some choice quotes from some of these companies operating within the cloud gaming market.
- GameBench, a leader in providing B2B performance analysis and optimization services that has recently started to analyze cloud gaming services: "There are certainly differences between platforms, with some standing out for better latency, while others stand out for better visuals. No one platform rules them all!"
- Gamestream, a B2B cloud gaming service whose main customers are telecommunication service providers and hospitality companies: "The dawn of 5G has led telcos to search for the best use case for this new technology and how to best advertise its potential. Cloud gaming provides a clear and obvious use case. After all, we’ve already worked with Chunghwa Telecom in Asia and Sunrise Telecom in Europe to provide our service for 5G. "
- Polystream, a B2B cloud gaming platform that sets itself apart by instantly running interactive in-game spectators from any cloud: "We need to move away from racks of consoles in data centers and focus on using the cloud to offer gamers entirely new experiences, not just spending time in-game lobbies waiting for a slot on a virtual console."
- Playkey, a B2C cloud gaming service that has its own servers but has also experimented with decentralized servers by renting individual and PC cafés’ hardware: "The cloud gamer has access to far more powerful hardware than the average PC gamer on Steam has."
- Antstream, a B2C cloud gaming service that focuses on offering a vast library of retro or arcade games: "The preconceived notion that quality and streaming can't be synonymous still exists and debunking it is one of our biggest challenges."
- Dixper, a company who pivoted away from a pure cloud gaming service to focus on tools that allow streamers and viewers to interact in real-time via the stream: "Not every game is suitable for Crowdplay [a service where players could self-stream games and play with other people]. We can see it growing in a future where new games with local/cloud cooperative features are developed with this use case at their core."
Are you among those who are entering the cloud gaming market this year? Let us know in the comments.