The Cloud Gaming 1.0 era is coming to an end and the opportunities for 2.0 and 3.0 are becoming clear.

Since the introduction of Onlive and Gaikai almost 10 years ago, cloud gaming has mostly been utilised by players that already game on platforms such as PC / Console

1/
For existing console and PC gamers, cloud gaming is not a replacement for their current devices.

Cloud is a way for them to extend their gameplay to additional devices in different environments. Providing a seamless gaming experience at all times.

2/
The top cloud gaming services for this such as PS Now and GeForce Now understand this through deep integration with existing ecosystems and libraries

Playing a game locally with friends, then being able to resume with the same save and same friends via cloud ver., is appealing
We are now entering the 2.0 era which is designed to bring existing game experiences to a wider audience on the platform of their choice.

This is being driven by the roll out of 5G in the mobile space, the extension of cloud services to multiple devices and new business models
5G can be a huge enabler for cloud gaming 2.0, removing many of the barriers to cloud gaming today. Investment in edge computing can further reduce latency in cloud games on mobile.

xCloud is a good example of how cloud gaming can enable AAA games on mobile.
The extension of cloud gaming services to multiple devices such as mobile and Smart TV's can help target lapsed gamers.

I wrote about this segment previously and how it could enable them to game again. Esp. w/ cheap TV stick / controller bundles. https://twitter.com/ZhugeEX/status/1286070174416764930?s=20
The introduction of new business models such as subscriptions can help increase the reach of cloud gaming

Especially in markets where AAA gaming is expensive. Game Pass on mobile is cheaper than buying a console. A low cost cloud only tier could work in Asia for example.
However, there are many questions regarding the above-

- How can AAA games increase appeal beyond console / PC?

- How do existing and new gamers discover these cloud games / cloud game services?

- How is cloud gaming sustainable for the platform / service owner?
This is where I believe Cloud Gaming 3.0 comes in. A long term play that deeply integrates cloud across the games industry to increase the appeal, discoverability and monetisation potential of cloud games

This is essentially about creating new experiences within a cloud game SKU
We are already starting to see glimpses of this with platforms like Stadia.

The ability to instantly demo a game. Deep links embedded into ads / gaming platforms.

How about being able to instantly play a new hero before you buy them? https://twitter.com/ZhugeEX/status/1319385948325556226?s=20
Instant demos via deep links is one thing. Integrated cloud game ads in an app or platform is another.

Cloud offers more than HTML5. Instantly start playing a cloud game while scrolling TikTok. Let influencers create their own cloud game ads with high scores to beat etc...
Integration between live streaming platforms and cloud games. Providing tools and experiences not possible before.

Instantly jump into a cloud game with a streamer via invite.

Let people pay to manipulate the game via chat / other tools as their favorite streamer plays.
Games on the market today can utilise the above to increase the appeal and discoverability of games + drive additional sales of in app purchases / full game purchases.

However, the real growth from 3.0 comes from games designed with cloud in mind. Cloud native experiences.
Cloud native experiences are unique, adapt to each device and utilise remote servers to create games that weren't possible before.

Whether it be sophisticated AAA games played by 1000's of players, or simpler experiences where players can engage how they want when they want.
Cloud will not just enable these new experiences and ways to play, but as above, it will help increase the appeal of these games as well as the ways the games can be distributed. That in turn can increase the overall number of players and the viability of cloud games overall.
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