Cloud Gaming To Generate $1.4 Billion This Year
While many have highlighted the individual challenges for cloud gaming companies, a careful analysis of the overall market speaks a different language. The sector is on track to surpass the $5 billion mark by 2023 as technology and infrastructure continue to improve. In addition, this type of gaming is a viable and accessible market that could reach nearly $1.4 billion this year. Continuous development and innovation in this sector mean that the revenue potential of gaming markets will continue to soar.
Continuous development and innovation in this sector mean that the revenue potential of cloud gaming markets will continue to soar. While many people focus on the individual challenges of cloud gaming companies, a careful analysis of the overall market tells a different story. In this article, we present high-level cloud gaming data, insights, and report updates, including a foretaste of an exclusive conversation we had with two cloud gaming stakeholders. The full report contains three different scenarios for limiting the pay-per-user market.
Newzoo claims that many focus on the individual challenges of cloud gaming companies and refuse to take an overall view of the market. Looking at the cloud gaming market from this perspective, the narrative around the market and revenue will change.
For millions of people confined to their homes, games have proven to be an important source of entertainment. This is why many companies, large and small, have decided to enter the space. Perhaps the biggest is Microsoft’s Project xCloud. The company launched its cloud-based gaming service last year, which allows mobile users to play games on Xbox Game Pass on their devices.
According to the latest estimates of Newzoo, global cloud gaming revenues are expected to more than double by the end of 2021. In money terms, the company expects revenue from cloud games to reach the $1.4 billion mark.
Massive M launched its server-based gaming service last year, which allowed mobile customers to play video games and Xbox games on the go with their devices. At the moment, users of Microsoft’s service reach a resolution of 720p. Massif M is currently testing the 1080p resolution.
The report suggests that the main reason why this platform of gaming generates so much revenue is due to the interest of large corporations. These companies invest large sums in cloud-based gaming and expect high returns from it.
Simply put, online gaming will remain and its importance and significance will only grow. Remote.app is a B2B cloud gaming solution for gaming and content aggregator companies. Regarding the future of gaming, Newzoo reiterated that it was very promising, even in its pessimistic revenue scenario.
From multiple sources, rumors, and news, the platform has begun to attract the interest of other large companies that have approached it with plans to buy. So far, Microsoft has been the one engaging in exclusive takeover talks. The deal could be worth up to $10 billion, but we won’t know until it’s done.
This is not surprising considering that Microsoft already owns Skype, Discord’s competitor platform. Microsoft has teamed up with Skype to offer three months of Discord Nitro as a perk for a Game Pass subscription. It is estimated that Skype had 40 million active users last March, well above the 140 million monthly active users Discord recorded at the end of 2020.
