August 15, 2010

Massive Growth In The Online Gaming Industry

By Glenn Blake

Online Gaming Industry

Cloud computing has a huge role to play in the video game industry in the near future. Applying cloud computing to video games is good not only for consumers, but for companies as well. This latest technique has solved many problems of the video game industry and has shown new horizons. Following are some problems which video games selling companies have been facing for years.

Piracy

There is a lot of piracy in video games. And in fact, many parts of the world with pirated games produce more business than the original games itself.  Although there are laws to stop piracy, its not so easy to implement there.  As a result, the video game companies have to face a huge loss.

Hardware and Software Requirements of the End-Systems

Most of the popular best selling games have very high graphic resolutions and complex algorithms. These games require a lot of processing power which standard PC computers can’t accommodate. This problem keeps many potential video game players away from purchasing and playing such games. So a major part of the market share is lost only because of the system-game compatibility issues.

Availability of the Latest Games in Market

In traditional technology you have to wait for the video games to be come available through a retail or distribution channel. In many countries and cities it becomes very difficult to find out where and when the latest game/s will become available. So again a large portion of potential customers are lost because of this problem.

Supply Chain Problems

When a video game has to pass through the whole supply chain before reaching the customers, its price increases to a significant amount, making it too expensive for many potential gamers.  the impact is to both the company and the customers.

Until recently the video industry was losing the battle in terms of creating affordable games.

Benefits To The Industry

  1. It removes all chances of piracy. The physical Gaming software will no longer be available to the market eliminating the potential for pirated versions. The gamers will play the game on cloud servers, controlling within their own system and watching on their own display screens.
  2. The compatibility issue will no more be there. Gamers will not need be required to purchase high priced hardware for playing video games. Playing the game on a providers server will also increase the visual effects and performance of the game because of the very sophisticated and advanced systems.
  3. The game will be available to the whole world within a few seconds after it is launched, giving everyone equal chances to enjoy the excitement of the  latest games.
  4. Cloud computing removes the whole supply chain of video game. Now gamers will have direct access to their favorite video game companies, reducing the price of the game for gamer and increasing the profit for the company.

These advantages to both video game consumers and companies are evident and will automatically result in a reduction of prices and expansion of the video game industry to many levels. It just seems to be a matter of time when the cloud-based video games will dominate the industry and the world…

By Glenn Blake

Glenn Blake

Glenn Blake is a writer for CloudTweaks and has been writing about technology trends for over 25 years.
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