CMA’s Finding Shows Cloud Gaming Might Replace Consoles Soon

We all have our preferences regarding gaming, and nobody can call you out on that. You can be a console player, a PC player, or even enjoy the cloud-gaming services. The point is that gaming has advanced to a point where we have many choices on how we play.

If we look at the fun part, some people have beaten games using a treadmill or even their mouths. As for gaming devices, the industry shifts based on what games come out. For example, the upcoming release of God of War Ragnarök has boosted PlayStation 5’s US shipments by a whopping 400%. 

The industry is ever-evolving, but we also have cloud gaming that allows you to play high-end games without spending so much money. Although many may not hold it so highly, it is one of the best things the gaming industry has gotten. According to the internal documents shared with CMA by Activision Blizzard, it seems like we have underestimated cloud gaming for far too long.

About Cloud Gaming

If you are one of the few people who doesn’t know how cloud gaming works, it is simple, instead of downloading a game for hours, you can hook up to the streaming services and play the game directly within just minutes. These services have various packages, and you can try different games based on your subscription.

There are many games, and they are disposable. Don’t take that literally, though. These games run on remote servers that stream them directly to the users’ devices. So, you are playing a game remotely without downloading or purchasing it.

Major Points

  • According to the documents, it was observed that the gaming industry would transition from device-based to cloud-based.
  • One of the primary reasons is that multiple-subscription services are increasing significantly, similar to the traditional buy-to-play model.
  • Although the exact figures and statements have been deleted from the document for confidentiality purposes, they reveal prominent data that can predict the direction the gaming industry is going toward.

Cloud-Based Gaming Over Device-Based

Our keen eyes at TopTierList found some interesting details in the Internal Documents shared with the CMA from Activision Blizzard. It mentioned something about how the multiple subscription service model, like GeForce Now, is growing significantly along with the traditional buy-to-play model.

One ABK internal document stated that “multi-game subscription services gained traction as Microsoft continues to invest in XGP. The document added that multi-game subscription services are increasing on console and mobile. Additionally, a third-party report held by ABK and shared with the CMA states that the expansion of new business models has boosted monetization in the gaming industry, one of those models being multi-game subscription services.

Cloud gaming
Internal Document Stating Reasons for Cloud Gaming’s Growth.

A third-report party provided further information. According to this, “multi-game subscription services are one ‘key theme’ for the gaming industry in 2022. The document explained that the gaming industry is going through a transition towards digital services, particularly multi-game subscription services. Gamers will be attracted to these services because they have a lower-cost access point and a large game library.

In addition, the gaming industry is expected to become more towards cloud-based gaming instead of traditional device-based. Their first reason stated:

A third-party report provided to the CMA by Microsoft states that cloud gaming services and multi-game subscription services will become an increasingly important part of the games market.

Gamers will Transition to Cloud-Based Gaming

In addition to what we already discussed, CMA believes that the recurring theme nowadays regarding streaming games has changed and become a lot more apparent. It will likely replace even consoles, allowing them to have entire game libraries on multiple devices.

Having services that offer multiple game subscriptions instead of buying each is also financially better. Not to mention, gamers also may be unable to keep up with the expensive console and PC hardware prices. Due to this and other reasons, CMA believes that the gaming industry will shift toward cloud-based streaming.

streaming games
Document Stating Cloud-Based Gaming will Replace Device-Based Gaming.

If you want to read these parts extensively, they can be found here under points 216 and 244.

In Conclusion

The gaming industry is evolving rapidly; with it, technology is also growing. So, these changes are expected, but the only question remains whether this transition will be smooth or if we will have to force ourselves to adapt to some of these significant changes.

Do you think the gaming industry will go in that direction? Let us know your thoughts, and if we changed to cloud-based gaming, would you enjoy that? Share your opinions below, and we will discuss them with you!

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