How Cloud Computing is Changing the Gaming Industry

Last updated on September 20th, 2023 at 10:40 am

Over the past few years, the cloud gaming industry has grown at an astounding pace.

According to research studies, the number of global online gamers is expected to grow from 2.3 billion in 2018 to 2.725 billion in 2021.

Game developers are keeping pace with this ever-evolving industry. They are continually striving to improve user experiences by introducing new technologies and producing codes for diverse consoles.

Cloud computing is a key technology that has enabled the rapid growth of the gaming industry. According to Statista, the global cloud gaming market was worth $0.17 billion in 2019. By 2023, it will reach $4.8 billion in 2023.

Let’s see how cloud computing has revolutionized the gaming environment.

What Is Cloud Gaming?

Traditionally, gaming required expensive hardware. That included set-top boxes, gaming PCs, and video game consoles.

Cloud computing has changed the approach to gaming.

Cloud gaming is an online gaming service powered by the cloud. It does not require any expensive hardware investments. Games are running on remote servers and are directly streamed to users over the internet, much like TV shows on Netflix.

The growing popularity of the cloud has also led to the evolution of live streaming. With live streaming, online gamers are not limited to a single device. online gamers are not limited to a single device. They can play their favorite games across multiple devices.

Examples of Companies Investing in Cloud Gaming

Sony, Google, Amazon, Microsoft, and Verizon are just some of the leading IT companies investing in cloud gaming. Their gaming platforms are changing the way games are developed and distributed.

Let’s analyze a few leading cloud gaming platforms that are revolutionizing the industry.

GeForce Now

Apart from keyboard and mouse support, the platform also supports the Xbox One controller, Xbox 360 controller, Logitech Gamepad, and DualShock 4.

The performance of the platform is quite impressive. It offers the Ultra Streaming Mode, offering 4K gaming at up to 60FPS.

PlayStation Now

With it, you can stream more than 800 games to your PS4 or PC. New game titles are added every month.

All you have to do is connect your DualShock 4 controller via USB, install PlayStation now, and you are all set up.

PlayStation offers free trials for users wanting to test their cloud platform before registering.

Google Stadia

Google rolled out Google Stadia in 2019. The cloud streaming platform comes with numerous impressive features, including 4K streaming at 60FPS and two free games monthly for its users.

Google Stadia includes a wireless controller and Chromecast Ultra. That way, games can be streamed directly to your TV without any additional hardware. Users can also play games on PCs and smartphones.

Project xCloud

The Microsoft Project xCloud focuses on delivering Xbox gaming to mobile devices. It requires 5Ghz Wi-Fi or 10Mbps mobile internet. The platform includes over 50 games.

All you need to use the platform is a Bluetooth Xbox One controller. You can also purchase an optional gaming clip that connects the controller to your smartphone.

The Benefits of Cloud Computing for the Gaming Industry

Cloud gaming undoubtedly has tremendous potential. Here are some of its benefits:

  • Gamers are finally untethered from the expensive gaming hardware that they have. The cloud brings high-end AAA games with high processing speeds to gamers’ households.
  • Players can access their accounts irrespective of their locations or devices. Multichannel experiences mean they can play games via their smartphones, laptops, tablets, and smart TVs.
  • Gamers use the computing power coming from the gaming providers’ servers. That way, they can leverage the latest components and patches without the subscription price increasing every time there is an infrastructure update.
  • Loading times are reduced, while games are accessible directly from users’ browsers. That reduces the need for manual downloads and updates. They take place automatically in the background without compromising user experiences.

The Online Gaming Challenges

Multiple cloud gaming challenges occur parallel with the rapid growth of this sector. Here are some of them:


Latency is a common problem in game streaming. The issue occurs in synchronous multiplayer games with high player interaction.

Smartphone games are even more sensitive to latency since the connection can be interrupted at any time.

Data consumption

We already mentioned the data consumption requirements set by popular game streaming platforms. For example, while movies are streamed at 30FPS, games are streamed at 60FPS.

Game ownership

Similar to music industry enthusiasts, passionate gamers would rather have their copy of a game instead of streaming it.

The Role of Artificial Intelligence in Cloud Gaming

Cloud gaming often goes hand in hand with artificial intelligence and deep learning.

Now, AI can improve cloud gaming in multiple ways:

Deep learning technologies improve user experiences

For instance, the AI-powered Deep Neural Network (DNN) technology can improve data analysis from previous game instances. That is how it allows for more efficient compression of video images. That can maximize the gaming speed and deliver better gamer experiences.

Artificial intelligence can boost online gaming security

It makes cloud gaming safer for storing user data. For example, the Microsoft Azure gaming platform uses advanced online security solutions that prevent DDoS attacks.

AI and deep learning provide innovative game designs and experiences

One such example is the virtual scene generation, where users can design customized gaming universes and invite friends to play games with them.

AI-driven technologies, such as natural language processing, speech recognition, and computer vision, are also taking gamer experiences to the next level. For example, StarCraft II uses AI-powered characters to boost user engagement.

Machine learning allows for the creation of smarter games that use artificial players and personalization.

Machine learning also improves Big Data analysis, allowing gaming companies to track essential metrics, such as the number of daily/monthly users, the number of new sign-ups, active gamers, the customer lifetime value, etc.

That way, game developers can deliver highly personalized user experiences, boost engagement, and minimize game abandonment.

Cloud Computing Is the Future of Gaming

Cloud computing is driving innovation in the gaming industry. With technologies such as cloud virtualization, analytics, and engineering, companies in the gaming sector can improve game accessibility and deliver seamless user experiences across multiple devices.

I hope these insights will help!

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