- Cloud gaming is being seen as the future of gaming and computing.
- Using this technology, any laptop or mobile device can be converted into a high-end gaming PC.
- The users can play games across devices without using expensive hardware systems.
Cloud gaming is being seen as the next big thing in the gaming world globally. The nascent technology, also known as gaming on-demand or gaming-as-a-service, is being seen as the future of gaming and computing.
It has emerged in a huge way in the US with the likes of tech behemoths such as Amazon, Google, Microsoft and Nvidia, which are aiming at employing big-budget cloud gaming strategies. Using cloud gaming technology, any laptop or mobile device can be converted into a high-end gaming PC.
The users can employ the cost-efficient technology to play games across devices without using expensive hardware systems.
How does cloud gaming work?
In other words, online gaming technology runs video games on remote servers and streams them directly to a user's device. The user plays a game remotely from a cloud. In traditional means of gaming, a game runs locally on a user's video game console, personal computer, or mobile device.
The gaming technology requires significant infrastructure for the services to work. It requires data centres and server farms for running games and high-bandwidth internet connections with low latency for delivering streams to users.
What is the cloud gaming revenue model?
Companies operating in the cloud gaming space globally generally operate on a subscription basis. The users of these services pay to get access to stream content.
What is cloud gaming? How has it evolved in Australia?
How is the Australian market placed?
There are a number of ASX stocks directly or indirectly involved with cloud computing. According to Gartner’s estimates, the gaming technology will grow to US$6.7 billion in 2024.
Pentanet (ASX:5GG), a telecommunication company that is based out of Perth, is known for offering next-gen internet speed to the clients who subscribe to its service.
It took a lead and launched GeForce NOW – American multinational technology company NVIDIA’s premier cloud-based game streaming service powered by Pentanet in Australia.
The company installed GeForce NOW RTX servers in Perth and Sydney last year. The installation was done with Internal Beta cloud gaming sessions for GeForce NOW in Australia from the Perth infrastructure. The Beta Play stage ran for nearly a month and collected data on performance, system demands, queue times.
Meanwhile, the company’s stock fell over 14% year-to-date (YTD). In past year, the stock fell nearly 17%.
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