What is Cloud Gaming?

Cloud gaming is a method of playing video games using remote servers in data centers. There’s no need to download and install games on a PC or console. Instead, streaming services require a reliable internet connection to send gaming information to an app or browser installed on the recipient device. The game is rendered and played on the remote server, but you see and interact with everything locally on your device.

The global Cloud Gaming market is expected to generate $4.929 billion in 2023 and is forecast to record 65% growth over the next five years. Cloud gaming services are highly dependent on the network and therefore appear an ideal segment to conquer for telcos. 

Benefits For The Users

Cloud gaming gives the ability to play on any platform (Linux, Windows, Mac OS…). A simple screen and an internet-connected device allow you to play games, whatever the computing power required. Furthermore, users can access the latest versions of the games, without having neither to download nor to install the software. Finally, it is a good way to solve hard drive space issues. The servers are continuously updated, in a transparent manner.

What Opportunities For Telecom Operators in Cloud Gaming?

Telecom operators’ core revenue streams are flagging, and their markets are saturated. At the same time, they must keep investing in infrastructure to cope with the tremendous increase in mobile data consumption. Making matters worse is disruption from over-the-top players and competitive pricing, which have contributed to the decline in overall revenue and ARPU. 

Cloud-gaming represents a major opportunity to offer an innovative video game experience on all screens (TV, PC, tablets, and smartphones). 5G, which will offer a differentiated QoS, fits perfectly into this framework. Telcos already possess a robust network infrastructure, including high-speed internet connections and data centers. This infrastructure can be leveraged to provide low-latency and high-bandwidth connectivity, which is crucial for a smooth cloud gaming experience.

Cloud gaming relies on streaming technology to deliver games over the internet. Telcos can utilize their existing content delivery networks (CDNs) to efficiently distribute game content, reducing latency and ensuring fast downloads. By partnering with game developers and publishers, telcos can establish agreements to host game content on their servers, enabling faster access for gamers.

The global cloud gaming market projections to reach several billion dollars by 2025.

5G Edge computing involves placing computational resources closer to the end-users, reducing latency, and improving performance. Telcos can deploy edge computing infrastructure in their data centers or network edge locations, allowing gamers to access games with minimal delay. This can be particularly beneficial for real-time multiplayer gaming, where low latency is critical.

There are major benefits for telecom operators that establish themselves in video gaming. An association with video gaming would change in brand perception among the digitally adept younger population. If that younger population is impressed by the operator’s venture into gaming, then this may increase their loyalty to the brand, thereby reducing customer churn. The overall video gaming ecosystem would further increase data usage, the main growth area among operators’ core revenue streams.

Continuous monitoring of network performance is crucial for identifying and resolving any bottlenecks or issues that may affect gaming performance. Telcos should employ network monitoring tools and analytics such as Cirries DART platform to detect and address latency spikes, packet loss, jitter, or other network problems promptly.

Are you ready to implement real-time network monitoring and measurements for gaming?