The analysts expect the cloud gaming market to keep growing quadrupling to $6.3 billion by 2024.
Newzoo has shared new data on the cloud gaming market reporting 21.7 million paying users of cloud games that generated $1.5 billion in 2021. The analysts also expect that by 2024 the number of paying users will increase to 58.6 million with global revenues in the area quadrupling reaching $6.3 billion.
According to the report, the cloud gaming ecosystem is currently in a pretty robust state and it keeps flourishing. The analysts also cited several trends in the cloud gaming market including the importance of hardware in data centers and cloud gaming services’ integration with TVs.
They also noted that currently smaller cloud gaming services are taking huge steps with their innovative approaches which lead to quick successes, while bigger companies keep on acquiring the smaller ones to grow their footprint in the cloud ecosystem.
The firm also predicts that large media and entertainment companies will enter the cloud games market as well. It cites Netflix which recently added games to its subscription. So far, users have to download games via App Store or Google Play, although cloud gaming could remove that barrier and keep users directly connected to its ecosystem.
However, the analysts also claim that cloud gaming still has several challenges to overcome with the major one being capacity as the companies still need to find a constant balance between technical performance, flexibility, and cost. Newzoo claimed that several companies struggled with this issue which eventually led to many early platforms having to shut down.
Although despite those challenges and obstacles, the firm still sees the future of cloud gaming as "unanimously positive" with these services attracting new users and spreading to multiple platforms including smart TVs, consoles, and streaming sticks.
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