Emerge Gaming Announced Roadmap For The Distribution Of Cloudzen’s ‘GameCloud’

On 11 February 2019, Emerge Gaming Limited (ASX:EM1) announced its strategic roadmap for the distribution of Cloudzen’s ‘GameCloud’, an advanced and revolutionary game streaming technology in different markets in 2019. It plans to target high-value tier 1 markets such as the USA and Australia, and emerging markets via Arcade X’s Telco VAS model (Value Added Services). Its revenue model includes unique e-commerce and advertising streaming functionalities.

GAMECLOUD is considered as the “Netflix of Gaming” with simple and instant streaming of more than hundreds of high-quality 3D games for mobile devices, allowing video streaming, social networking, and multiplayer gaming. Its key features are expected to enhance user experience which includes ability to stream directly to Twitch from mobile devices, interactive social group and in-game chat functionality, live streaming of video games, movies and entertainment, interactive eSports streaming feature, overlay of eCommerce and advertising in stream functionality, compatibility with all video games, stream ability on 4G networks, and accessibility on mid-level smart devices.

Its advantage provides a significant edge over its peers group due to its streaming technology created for any device, compression algorithm allowing affordable streaming of the technology with most devices, good video quality, revolutionary consistency of its compression technology, usability on mobile phones as well as tablets to play AAA games and stream content, fast response time, unnoticeable lag between control inputs and on-screen action with the technology latency times similar to “Netflix”.

Under the company’s exclusive global distribution agreement, markets such as South Africa, the United States of America, the United Kingdom, Australia, South America, Africa, and India have been identified and agreed upon by the company based on its existing rollout strategy for its Arcade X technology. Its strategy mainly comprises of establishing relationships with telecommunication companies as the potential partners to distribute the technologies to their network, providing access to potential subscribers to fast track rollouts and regional integration. The company has showcased its adoption of 5G cellular technology at 5G Garage, Singapore’s only live 5G facility opened by Singtel, Ericsson and Singapore Polytechnic. Along with distribution partnerships with telcos, the company plans to secure marketing and content distribution partners in each region.

The company’s go-to-market strategy ensures that a solid network base is established throughout the targeted regions to maximize exposure of the product and drive revenue integration in these markets. The revenue model comprises the monthly subscription fee which will be considered conservative in comparison to other streaming service providers, the aim of which is to attract subscribers to the platform as a viable alternative to traditional purchases of PC and console games. This eliminates the need for gamers to continuously upgrade their hardware devices to keep up with changing technological requirements in order to play newly released games. eCommerce and advertising streaming functionality provide the company with an additional revenue stream that will be utilized to drive revenue through corporate sponsorships.

The company faces multiple challenges in adoption rates, where AAA games require large downloads and storage capacity which need a compatible console and expensive PC setups. These barriers often obstruct and deflect gamers’ desire to engage fully.

About the company: Emerge Gaming focuses on all gaming segments by operating the casual gaming tournaments, online esports, and lifestyle hub “Arcade X,” allowing gamers to play hundreds of gaming titles against each other via their mobile, console or PC.

Cloudzen is a Singapore based leading cloud gaming and mobile entertainment platform as a service provider offering various means of communications channels through digital entertainment via social and communities’ networks, and game stores.

GameCloud is the technology platform which provides gamers with a one-stop portal for instant access to hundreds of AAA-rated 3D graphics games without having to download the game or any further hardware requirements. It enables gamers to play at any time from handheld devices and smart TVs, with multiplayer gaming, video streaming, and social networking.

On stock information, Emerge Gaming last traded at A$0.007 (up 16.667% as on February 11, 2019) with the market capitalization of A$3.53 mn. Its 52 weeks high has been noted at A$0.024 and low at A$0.006. The stock has offered negative absolute return of 7.14%, 69.05%, and 95.05% for 3 months, 1 year and 5 years respectively.

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