Is the future of the gaming industry in cloud streaming?

The rise of cloud gaming, or game streaming as it is sometimes also known, raises questions on whether this technology will become the backbone of the sector.

Microsoft hit headlines recently when it revealed a surprise preview launch of its cloud game streaming service, Xbox Game Streaming (previously known as xCloud), for its Xbox Game Pass Ultimate subscribers. With this release, subscribers can now test a limited selection of titles available for streaming onto smartphone or tablet. Meanwhile, the company is in the final stages of readying the experience for broad availability across Android devices from September 15, when it will be integrated with the Xbox Pass Ultimate system. Once launched, players will be able to stream titles ranging from Halo 5 to Destiny 2 onto personal devices.

Cloud gaming is increasing momentum in the $150bn gaming industry. As I discussed previously, this momentum has been encouraged in no small part by the proliferation of 5G technology, which will allow streaming to run more smoothly and without lagging.

Microsoft is not the first to throw its hat into the cloud gaming ring. Other game streaming platforms already exist, but they are not without their issues. Google’s Stadia has been met with mixed reviews, with much of the criticism centering around its limited selection. GeForce Now from Nvidia has already seen some of its developers pull from the platform. Though PlayStation Now has had success, its scope (it is only available on PS4 and PC) is relatively narrow. Could Microsoft’s product be the first real ‘breakthrough’ in this space? If it pulls off the launch successfully, it could really set the pace and gain a critical foothold in this growing corner of the industry.

So what are the benefits of cloud gaming? The mobility that it offers (how intriguing it will be to log onto a AAA title from your phone) is certainly interesting. Not to mention that it opens up the gaming market to a whole raft of new players who may not be in a position to afford a console or a PC gaming rig, but almost certainly have at least one device and the budget for an eminently affordable phone mount.

In the case of Microsoft, the fact that Xbox Game Streaming will be unavailable on iOS devices due to restrictions inherent to Apple’s software is, analysts have agreed, a blow to the burgeoning platform. Though Apple is hesitant to give its exact number of users, research conducted by financial firm Piper Jaffray in 2018 found that as many as 82% of all teens in the US have an iPhone. A report in 2019 from payments advisory group Mercator Advisory similarly found that the majority of the 18-34 age group use iPhone.

Losing a portion of smartphone users notwithstanding, the broadening of access is still an interesting (and potentially profitable) prospect, as evinced by the amount of Big Tech firms trying their hand at it. Yet it begs another question: do people really want AAA games on their phones or tablets?

The ability to take a device, and the game therein, on the go is appealing. It is important to note that most of these games still require controllers to enjoy proper in-game movement and functionality. However, this is a small nuisance compared to hauling bulky and potentially fragile hardware around. This new departure poses a far more seamless way to game while on the move and the potential is truly exciting.

One wonders whether the impressive graphics and art in major titles arguably can be properly enjoyed on a smaller screen. The success of cloud gaming will largely depend on user priorities when it comes to the gaming experience.

Some developers have bemoaned the labor-intensive re-coding required to port games and make them cloud streaming-compatible. This will likely be a temporary snag that future developments won’t have to undergo, because most will be coded going forward with cross-platform gaming in mind. Will the extra labor costs required to factor in this mode of gaming (and, by extension, the unique security issues it creates) be justified by increased adoption? Perhaps it won’t make a difference to AAA titles, but it certainly could be a make-or-break requirement for smaller indie productions. The fear would be that down the line, this could lock out indies from appearing on major cloud-integrated platforms.

Whether companies are interested in streaming or not, greater facilitation of cross-platform multiplayer experiences should be a priority: it feels counterintuitive that presently, many titles are available on PC, console and mobile yet players on those different platforms can’t play together. Fortnite and Minecraft are notable exceptions here; and as a result, they’ve put a lot of pressure on larger firms to follow suit.

For many reasons, the designation ‘Netflix for gaming’ does a disservice to cloud gaming. The Netflix model already exists in the world of gaming and has for a long time. What cloud gaming provides is broadened access, and there is no real equivalent in the world of video streaming. Above all, cloud gaming continues to be a fascinating development in the industry that is still in its infancy. The most exciting changes are yet to come.