Market intelligence group Newzoo launched its 2022 Global Cloud Gaming Report. The document includes market forecasts and estimates, an overview of the cloud gaming ecosystem, results of a cloud gaming consumer survey, interviews with key stakeholders, and more. The analysis says that the cloud gaming market is on pace to generate USD 2.4 billion in 2022, with 31.7 million consumers participating globally. Looking ahead, Newzoo predicts that the cloud gaming market will produce USD 8.2 billion by the year 2025, a +241.67% in comparison to 2022. Regarding users, this indicator will expand to more than 86.9 million by 2025, almost tripling 2022 numbers.
Some of the key factors impacting the performance of the cloud gaming market are the following: 1) New cloud gaming services continue to launch, existing ones are expanding, and all of them are tweaking their marketing and business to better align with consumers’ wants and needs; 2) Cloud gaming’s use cases continue to expand, offering something appealing to almost every player (across all platforms) while benefitting developers and publishers; 3) More accessible cloud gaming monetization improves adoption but could limit revenue potential; 4) New AAA and upcoming cloud-enabled games are catalysts for cloud gaming’s growth, and 5) Supply constraints mean consumers are still struggling to buy the latest gaming hardware, nudging them toward cloud gaming.
The report from Newzoo includes two special focus topics. The first examines how cloud gamers across four key markets (the United States, Germany, Brazil, and China) are engaging with cloud gaming, their motivations, and what could improve their experience. The results are encouraging for the market’s future. Then, it dives into how the metaverse is leveraging the foundations of cloud gaming to pave the way for the future of the Internet.
WHAT IS CLOUD GAMING
Cloud gaming revenues can be defined as the amount the market generates in consumer spending on cloud gaming services: digital full-game purchases, in-game spending, and monthly fees to use the services themselves, as well as spending on game subscriptions that operate with cloud gaming services.
With gaming technology constantly evolving, upgrading hardware every few years is mandatory to enjoy the latest titles, but this comes with a large price tag. By connecting to devices in the cloud, costs are rapidly reduced to a subscription fee, and the provider takes on all the responsibilities of maintaining high-end gaming systems. With no need for on-site hardware, cloud gaming saves space in the home and eliminates the noise and heat generated by gaming machines.
In the near future, cloud gaming will allow consumers to play blockbuster titles on virtually any screen with an Internet connection, regardless of the hardware. The global rollout of 5G technology will ameliorate existing connectivity issues, spurring further growth of cloud gaming throughout the next years.