Cloud Gaming Expected to Generate Over $500 Million in 2020

Even with people’s lukewarm response to Google Stadia, it seems cloud gaming’s future is bright. The global cloud gaming market will generate $585 million this year, video game analytics firm Newzoo predicts in their report. And by 2023, the market is also expected to grow up to 720%, to $4.8 billion. While 2023’s projection could be a stretch, the COVID-19 pandemic and the ensuing lockdown rules definitely have helped its growth this year. But hey, who am I to argue with a report from professional analysts?

Still, with potential revenues that high, it’s no wonder many tech companies are now trying to get their hands into this golden egg basket. From well-known household names such as Microsoft, Google, Amazon, and Nvidia to up-and-coming companies like Parsec. Early this August, the freeware streaming application has partnered up with Ubisoft to help them power their game streaming technology. Parsec showcased the strength of their application in July’s Ubisoft Forward, via a demonstration of live gameplay of Watch Dogs: Legion and Assassin’s Creed Valhalla.

Quoting Fortune, Newzoo analyst Guilherme Fernandes said among all the tech giants Microsoft is the “strongest player right now” thanks to the whole Xbox ecosystem they’ve built and nurtured since the last few years. Their streaming service, xCloud, will be launched and bundled into Xbox Game Pass in mid-September. And in April they’ve hit 10 million subscribers already. It’s just going to get bigger in the near future.

On the other hand, the public is still not convinced Amazon can pull off their cloud gaming service, Tempo. Especially after their in-house developed titles, Crucible and New World, keep garnering negative feedback and releases keep getting delayed. Meanwhile, a lack of exclusives has hindered Google Stadia’s success. “I think Google’s launch of Stadia was a little bit underwhelming because they have not delivered enough content to really get people on board,” said Fernandes.

Fernandes added that he expects the cloud gaming market to gain more momentum as more 5G network adoptions spread all over the world. Obviously increased internet speed should give less latency and smoother experiences, thus making streaming a more appealing alternative to the conventional console or PC gaming. Have you tried game streaming with PS Now, Stadia, or other services? Don’t forget to share with us your stories in the comments.