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Future of Gaming: Will Cloud Gaming Ever Replace PCs and Consoles?

December 2022

Cloud gaming has been gaining lots of traction in recent years as it allows people to access graphically demanding games without owning top-tier gaming hardware. As it offers low entry price for a PC or console experience, many expected it to take the gaming market by storm. Will cloud gaming ever replace high-end PCs and consoles?

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This report comes in PPT.

Key findings

Video games penetrate mainstream market

Video games enjoyed lasting impact post-pandemic as many turned to gaming in order to relax or connect with family and friends virtually.

Mobile speed gap and 5G slow adoption are major hurdles for cloud gaming

A huge gap in mobile speed between key cities and the low penetration of 5G due to cost and slow deployment become limiting factors for cloud gaming’s growth.

Microsoft shows commitment to increase cloud gaming’s popularity

Microsoft invests in cloud gaming by building strong subscription service and making large acquisition to position itself as a leader in the market.

Cloud gaming can benefit from increasing paid streaming popularity

Increasing willingness among consumers to pay for video, music, or sport means that paying for cloud gaming subscriptions would not be much of an issue.

Cloud gaming remains a complementary product for PCs and consoles

Avid gamers will want to stick with PCs or consoles when playing at home while using cloud gaming services on the go.

Cloud gaming to eventually reach casual gamers

Manufacturers have high ambition to reach casual gamers who are mainly mobile gamers and bring the PC and console experience to them at a low entry price through cloud gaming.

Executive summary
What is cloud gaming?
Video gaming are becoming mainstream
The younger consumers are avid gamers
Online gaming is gaining traction despite mobile games dominating video games sales
Huge gap in mobile speed between key cities remains a challenge
Demand for new generation consoles set to dwindle from 2023
Sony remains cautious in going big for cloud gaming
Xbox Game Pass is the undisputed leader of cloud gaming
Google Stadia’s failure and what it means for cloud gaming
5G will be crucial in appealing gamers to cloud gaming
AR/VR and metaverse give more value in cloud gaming
Cloud gaming can benefit from the increasing popularity of paid streaming services
Apple strong subscription shows the strength of all-in-one subscription
Who’s next? Various industries are exploring cloud gaming
Cloud gaming remains a complementary product for PCs and consoles
Hardware will be crucial in cloud gaming development
Cloud gaming on smart TVs
Where is cloud gaming heading in the next 5-10 years?

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