J. Clement
Research lead covering internet and gaming
Cloud gaming - statistics & facts
Cloud gaming refers to video game streaming that allows players to play games on their devices through an online connection, without the need for dedicated gaming hardware or local installation of games. Cloud gaming can make video games more accessible, as modern graphics-intensive games require specialized gaming PCs or consoles, which often are costly, and hardware space is also mostly limited unless upgraded manually. In 2027, the global cloud gaming market is projected to reach 18.71 billion U.S. dollars in revenue, up from an estimated 4.34 billion U.S. dollars in 2022.
The spread of high-speed internet connections and developments in cloud computing technology have led to the growth of the cloud gaming market in recent years, but the practice is still far from mainstream. Additionally, major gaming companies like Sony still cite technical difficulties, latency, and cost inefficiencies as concerns regarding the business sustainability of cloud gaming.
Despite the variety of services, the cloud gaming market is tough to break into, and not every service generates the critical mass of adoption to make it sustainable to run on its own. Even major digital companies do not automatically find success with their cloud streaming concepts. In mid-2022, Sony’s long-running PlayStation Now cloud gaming service was integrated into its general gaming subscription service PlayStation Plus at the most expensive tier level, PlayStation Plus Premium. Another now defunct service is Google Stadia, which launched publicly in November 2019 before being abandoned in February 2021 and completely shuttered in January 2023.
Despite currently limited usage, cloud gaming’s potential as a distribution channel has been cited as a major reason for the holdup of Microsoft’s proposed acquisition of video game company Activision Blizzard. In the 18 months since the announcement of the deal, Microsoft has since taken steps to sign multiple 10-year deals with cloud gaming services to bring Xbox games on PC to Nvidia's GeForce Now, Boosteroid, Ubitus, and Nware.
What is cloud gaming?
In cloud gaming, games are stored and run on remote servers. The player's device only needs to send inputs and receive streaming video and audio output – a game-changer for players who do not want or cannot afford to keep up with upgrading their gaming hardware every few years. Cloud gaming as a concept has been experimented with since the early 2000s but did not take off until more than a decade later due to technology and infrastructure constraints.The spread of high-speed internet connections and developments in cloud computing technology have led to the growth of the cloud gaming market in recent years, but the practice is still far from mainstream. Additionally, major gaming companies like Sony still cite technical difficulties, latency, and cost inefficiencies as concerns regarding the business sustainability of cloud gaming.
What are the leading cloud gaming services?
Major cloud gaming providers include NVIDIA GeForce Now, Boosteroid, and Microsoft’s offering Xbox Cloud Gaming (also known as xCloud). Another cloud gaming platform is Amazon Luna (available only in the US, UK, Canada, and Germany), which is included in Amazon Prime.Despite the variety of services, the cloud gaming market is tough to break into, and not every service generates the critical mass of adoption to make it sustainable to run on its own. Even major digital companies do not automatically find success with their cloud streaming concepts. In mid-2022, Sony’s long-running PlayStation Now cloud gaming service was integrated into its general gaming subscription service PlayStation Plus at the most expensive tier level, PlayStation Plus Premium. Another now defunct service is Google Stadia, which launched publicly in November 2019 before being abandoned in February 2021 and completely shuttered in January 2023.
Consumer interest in cloud gaming
In the past few years, consumer awareness of cloud gaming increased significantly. As of April 2022, 43 percent of online users in the United States were aware of cloud gaming, up from 14 percent in November 2020. Similar levels of interest were also reported for the UK and Germany. Another early 2023 survey found that 24 percent of U.S. gamers were very interested in subscribing to a cloud gaming service, and an additional 24 percent were at least somewhat interested in doing so. Overall, the share of gamers who subscribe specifically to cloud gaming services is still lower than the share of gamers who pay for video gaming subscriptions in general.Despite currently limited usage, cloud gaming’s potential as a distribution channel has been cited as a major reason for the holdup of Microsoft’s proposed acquisition of video game company Activision Blizzard. In the 18 months since the announcement of the deal, Microsoft has since taken steps to sign multiple 10-year deals with cloud gaming services to bring Xbox games on PC to Nvidia's GeForce Now, Boosteroid, Ubitus, and Nware.
