No cloud gaming service has achieved mainstream success yet, as just 6% of global unique gamers subscribed to a cloud gaming service in 2023, according to GlobalData.
GlobalData’s latest thematic report “Cloud Gaming”, reveals that the cloud gaming market will be worth over $22-billion in 2030, up from $3-billion in 2023. Cloud gaming subscribers will grow from 184-million in 2023 to over 687-million in 2030.
Rupantar Guha, principal analyst: thematic intelligence at GlobalData, comments: “It is still early days for cloud gaming, but it will ultimately disrupt the video games industry, just as video and audio streaming changed the music, film, and TV industries.
“Its ease of use and flexibility will transform how games are distributed, consumed, and monetized. The major cloud gaming providers, including Microsoft, Sony, and Nvidia, are banking on subscription models to become the ‘Netflix of gaming’.”
The cloud gaming market is attracting investments from tech giants (e.g., Microsoft, Nvidia) and telcos (such as Swisscom, China Mobile). Game publishers like Ubisoft and Electronic Arts are partnering with service providers to strengthen their position in this market. Tencent, Valve, and Netflix also plan to enter the market in the next two years.
Guha concludes: “Cloud gaming’s success depends on the availability of reliable, fast networks, large game libraries, and competitive pricing. Some companies will use ad or usage-based plans to attract casual users. However, data privacy and copyright issues must be addressed if cloud gaming is to flourish.”