The Future of Gaming and The IP House Colocation Solution

Jamieson Lee Hill, Videogame Story Writer and Copywriter

With the rapid advance of cloud gaming technology, could it eventually replace traditional gaming consoles and PCs? This is the $100 question. In this article, we explore the topic of cloud gaming and the future of consoles and PCs. We also look at IP House's colocation solution for the thriving cloud gaming sector. 

What is Cloud Gaming?

“With cloud gaming, all you need is an internet connection and, depending on which cloud gaming service you’re using, a web browser on a computer, a smartphone, or a video streaming box along with a controller.”

Source: Alan Lu, Vodafone, Aug 2023

This definition of cloud gaming demonstrates that ultimately it doesn’t depend on high-end PCs or consoles. It requires a speedy internet connection and either a phone or smart TV and/or video streaming device. Cloud gaming is another entry point for gaming. 

The Netflix of Gaming

Cloud gaming has been called the ‘Netflix of gaming’ as it has the vast potential for growth, similar to Netflix as a streaming service. However, back in 2007 when Netflix started its services, streaming was much less common. As Deloitte points out,

“Few at the time (in 2007) recognised the value of streaming, so competition was minimal and the company found it relatively easy to licence content. Neither of these conditions exists today and streaming video games is a much bigger technical challenge than streaming video.”

Source: Deloitte, March 9th 2020

The increased competition in current times for streaming and the ‘bigger technical challenge’ for streaming cloud games are significant factors. Gamers who invest in high-end gaming PCs and consoles usually play triple AAA games. They purchase their hardware to run big games with massive GB downloads & updates, with advanced graphics and animation. There is very low tolerance in the gamer communities for any lagging in games aka high latency. 

Console and PC Free Cloud Gaming Is Here!

For many years, AAA games required massive GB downloads and high streaming requirements that only consoles and high-end PCs could deliver. Flip forward, nowadays cloud gaming providers like Luna + and Geoforce Now are already providing AAA titles through your smart TV without a console or PC in sight! Check out this Luna + Tik Tok advert!

A Change in the Balance of Power In Gaming

Ultimately, in the cloud, one can run games of all sizes. As the technology develops, this could see an end to the prevalent downloads and updates that currently exist with consoles and PC gaming. With cloud gaming, gamers can stream titles directly from servers rather than playing them on local hardware. As the cloud grows bigger in power, so will the capacity and potential of games. 

According to Deloitte, cloud gaming's rise is powered by increasingly robust internet connections and the growing preference for streaming services across media types. This eliminates the need for expensive hardware upgrades, making high-quality gaming experiences more accessible to a broader audience. Deloitte predicted back in 2020, that cloud gaming could remove the necessity for specialised consoles with cloud gaming being enabled on ‘almost any device’, 

“With more than 2.5 billion gamers worldwide, the opportunity and the impact may be considerable.Cloud gaming could eliminate the need for specialised consoles while allowing gamers to play any game from almost any device; it could enable game companies to develop richer experiences supporting far more players”

Source: Deloitte.com, 19 March 2020

Deloitte also forecasted in 2020 a potential movement in the ‘balance of power’ in the gaming industry as cloud gaming gets a stronger hold,

“...it could drive telecoms, internet service providers and content delivery networks to significantly expand their capabilities while stoking demand for 5G; and it could shift the balance of power across the video game industry, placing top cloud gaming providers at the hub of the distribution pipeline.”

Source: Deloitte.com, 19 March 2020

In 2024, with the number of cloud gaming platforms growing, we see that a new status quo is already forming.

Gaming Consoles and PCs Here To Stay?

Before we ring the death knell, it is prudent to say that consoles and PCs are unlikely to disappear in the near future. Despite the huge advances in cloud gaming technology, big brands like Playstation and XBox are incorporating cloud gaming into their existing business models. 

It is perhaps not over for consoles and PCs just yet. According to Tom's Guide, a popular tech website,  the tactile feel of hardware, the culturally ingrained nature of console and PC gaming, and the high performance of dedicated gaming machines mean that both are here to stay. Tom’s Guide speculates that gaming on your TV (without a console or PC) is definitely a new format for gaming, but it isn’t ready to take over,

“Thus, while TVs could be a new form of entry with gaming on the cloud and could serve as a new battleground in the still thriving console wars, the likelihood is incredibly slim even in the long term. Physical hardware is just too hard to beat, and given the multitude of constraints and seemingly unwillingness by some to conform to game streaming, the future of a cloud gaming TV-dominated market may just be a pipe dream for now.”

Source: Tom’s Guide, Dec 29, 2023

Console, PCs And Cloud Gaming Evolving Together?

Cloud gaming platforms like Playstation and XBox offer specialised hardware that can deliver experiences that cloud gaming currently cannot. This is especially true in terms of high-fidelity graphics and minimal latency. Indeed, rather than replace PCs and consoles, some billion-dollar gaming brands have used cloud gaming as a complement to existing console and PC services. 

Read more about some of the top cloud gaming platforms here. 

IP House & The Role of Colocation in Cloud Gaming

IP House Colocation Data Centre is at the forefront of supporting gaming studios and brands with cloud gaming infrastructure. IP House offers leading-edge colocation services with the necessary server support and robust cybersecurity for gaming companies. What's more, our high-specification colocation data centre guarantees seamless and uninterrupted gameplay with our low latency capabilities. 

Final Thoughts

Cloud gaming is redefining the industry, making gaming more accessible and reducing the dependence on expensive hardware. However, it is unlikely to fully replace consoles and gaming PCs any time soon. As the future unfolds for cloud gaming, IP House colocation services are a crucial part of this transition. 

Overall, IP House’s collocation solutions improve the reliability and performance of cloud gaming services. They provide the low latency and lag free gaming experience that players expect. Together with our gaming brand partners, we are a core aspect of the evolution of the cloud gaming ecosystem.

Are you a gaming company interested in colocation data centre services? Fill out the contact form below. Let’s Talk!

Sources:

1. https://www.deloitte.com/ug/en/our-thinking/insights/industry/media-telecommunications/future-of-cloud-gaming.html
2. https://www.tomsguide.com/features/your-tv-could-one-day-replace-your-game-console-but-it-wont-happen-in-2024
3. https://www.vodafone.co.uk/newscentre/smart-living/lifestyle/how-cloud-gaming-c
4. https://www.deloitte.com/ug/en/our-thinking/insights/industry/media-telecommunications/future-of-cloud-gaming.htmlould-make-consoles-and-pcs-obsolete
5. https://www.tomsguide.com/features/your-tv-could-one-day-replace-your-game-console-but-it-wont-happen-in-2024
6. https://www.youtube.com/watch?v=Vs-ge5uvp6A&ab_channel=ByteSizeTech