Cloud Gaming Is Ready: The Games Industry Isn’t

Cloud Gaming Is Ready: The Games Industry Isn’t

Cloud Gaming Is Ready: The Games Industry Isn’t

The current perception of cloud streaming technology in the Games Industry, particularly in the Massively Multiplayer Online (MMO) marketplace, is to put it mildly ‘mixed’.

Recent comments at Gamescom 2013 have only cemented for some that while Cloud Gaming is a great idea, the technology isn’t quite ready for the primetime (no doubt in part aided by the meteoric rise and spectacularly public fall of OnLive).  The truth is that not only is it ready- the online gaming market space is in desperate need of real file streaming cloud solutions.

Obviously the MMO games market is big business, estimated to reach $17.5 billion dollars by 2015. This massive expansion over the last two decades has for the most part been fueled by the importation and adoption of the Free to Play (F2P) model from the East and Western Publishing giants like Blizzard and Electronic Arts.  This expansion has not gone unchallenged, not just by consoles but by the explosion of Social and Mobile games. Competition to attract and keep consumer interest is fierce. The key challenge faced by game Developers and Publishers is customer engagement, especially in a saturated marketplace where consumers are increasingly spoilt for choice.

The irony here is that the software delivery mechanisms used by MMO publishers for their online products have over the last decade remained relatively unchanged. The standard procedure for a consumer interested in trying a new MMO game is to:

    1. Download a hefty client running into the gigabytes (Often taking hours)
    2. Wait as the client downloads the latest software patches for the product (some patches being larger than the initial client download )
    3. Create and then register a user account.

For consumers new to MMO games (and used to the convenience and quick access of Mobile and Social), the whole process is off-putting. For veteran players it’s a painful procedure that erodes any willingness to try unknown titles. All in all a situation best described as frustrating.

This entire arrangement not only places unnecessary barriers to consumer entry. It eats into the very foundation upon which online games survive: Capitalizing on interest and creating engagement in the shortest time possible. The quicker you can convert a consumer click of an offer into a gamer inside a title, the higher your chances are of creating a new customer. Placing hurdles like extensive downloads and patch frustrations only delay that magic moment of conversion, translating into lost revenues and a decreasing marketplace share.

The truly sad part is that it doesn’t have to be this way. These bulky content delivery systems should have disappeared years ago but the games industry still persists using them. Part of the reason I believe is the public and industry perception that Cloud Gaming is just about video streaming. An expensive model, requiring extensive server farms, extreme bandwidth requirements and often a loss of graphic fidelity. When it comes to Cloud Gaming based on video streaming, the technological and bandwidth limitations just don’t cut it.

What has and continues to work is Cloud Gaming based on file streaming. MMO Games powered by optimized file streaming, with tight data compression and prediction algorithms, are transformed from bloated data monsters into lean engaging titles. No more patching and no more lengthy downloads – just a simple client and optimized streaming that’s light on bandwidth. Customers take minutes, not hours, to get into optimized games.

This isn’t just fanciful marketing speak. We recently converted Remnant Knights, a popular MMO published by GameSamba. Originally weighing in at 1.2 gigs, it took just under 2 hours to download, with 12 clicks from registration to play. The company was managing to only convert 40% of its users from registration into actually playing. Take a look at the massive rise in conversion numbers after they optimized with Kalydo and discarded their antiquated client.

The Gaming Industry is only going to become more saturated in the years to come. Consumers from developing markets with lower bandwidth infrastructures and a rising spend in the F2P MMO market will opt for less bandwidth intensive options. The bottom line is that in any tightly competitive market, an edge that increases conversions and decreases customer frustration is a critical asset. The question is no longer whether Cloud Gaming is ready.

The real question is: When will the Games Industry wake up?

The complete GameSamba conversion case study is located here

Doki-CEO

By Doki Tops CEO/Co-Founder,

Doki Started Kalydo to revolutionize the way games are played, distributed and operated. Over the years he has developed a deep understanding of how technology affects both the business of gaming and gamers themselves. Doki remains a game nerd with a passion to make gaming better for developers, publishers and players.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

One Response to Cloud Gaming Is Ready: The Games Industry Isn’t

  1. Spot on! The tedious hoops Sqeenix set forth for the FFXIV beta stopped me in my tracks. I barely have time to play a game. I surely don’t have time to research how to set up even a temporary account to get permission to download the trial product. They expect me to spend several hours prior to getting to try anything?. That may take me a few days with my aloted free time to get to the point where I can even customize a character.


CloudTweaks Sponsors - Find out more!


Popular

Top Viral Impact

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs

Cloud Infographic – Cloud Computing And SMEs SMEs (Small/Medium Sized Enterprises) make up the bulk of businesses today. Most cloud based applications created today are geared toward the SME market. Accounting, Storage, Backup services are just a few of them. According to the European Commission, cloud based technology could help 80% of organisations reduce costs by…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

BYOD Will Continue To Define Workplaces In 2014

BYOD Will Continue To Define Workplaces In 2014

BYOD Will Continue To Define Workplaces In 2014 The bring-your-own-device trend has been the subject of scrutiny ever since its initial formation. Given how quickly personal smartphones and tablets became a fixture in everyday life, it makes perfect sense that these mobile machines would slip into workplaces. While BYOD has caused headaches for many businesses,…

Cloud Infographic: Cloud Computing Growth

Cloud Infographic: Cloud Computing Growth

An excellent infographic provided by AwesomeCloud which predicts a continued high level of growth in the cloud computing industry. Potentially staggering numbers for Public Cloud IT Services of $100 Billion by 2016. Infographic Source: AwesomeCloud About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the…

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends For nearly every business, the concept of business intelligence is nothing new. Ambitious organizations have been searching for any type of data-driven advantage for some time now – perhaps for as long as they’ve existed. However, the historical use of competitive intelligence pales in comparison to the…


Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021
contact@cloudtweaks.com

Join our newsletter