Approximately 2.7 billion individuals globally, more than a third of the world’s population, engage in gaming activities. These gamers are projected to collectively expend a staggering $160 billion on games in 2020 alone. Forecasts indicate that within the next three years, the gaming market will exceed the $200 billion mark, positioning it as one of the rare industries to achieve noteworthy progress despite the challenges posed by the pandemic.
The gaming industry has experienced a steady rise in popularity, but the global pandemic has genuinely transformed the landscape. The period of lockdown and its aftermath saw an unprecedented surge in mobile gaming, particularly in regions with a strong focus on mobile devices, such as Asia.
India, one of the leading markets for mobile gaming, exhibits notably high adoption rates. A prime illustration is a remarkable increase in usage observed by Mobile Premier League (MPL), an indigenous startup offering an esports and mobile gaming platform. Since March of this year, MPL has experienced an astounding fourfold surge in activity, directly influenced by the global pandemic. The dominance of mobile gaming as a catalyst for the expansion of digital game consumption is evident. Anticipated mobile gaming revenues for this year are projected to exceed $100 billion, surpassing the combined earnings of console titles for Nintendo Switch, Xbox One, and PlayStation 4 by more than threefold, as reported by IDC-App Annie.
How Cloud is powering mobile games
Will mobile gaming remain a temporary digital distraction? Why is mobile or online gaming favored as a medium for entertainment? The accessibility and capacity to deliver distinctive experiences to gamers are vital factors in its appeal.
The rise of multiplayer games has led to a heightened focus on enhancing the user experience. Gaming companies are now utilizing advanced technologies such as Cloud and AI to provide a seamless experience to their users. The days of non-interactive single-user games are fading, as developers are expected to create entire ecosystems or virtual worlds around their games. The introduction of Cloud gaming infrastructure has proven to be a tremendous advantage for gaming startups and developers at the forefront of innovation.
Cloud technology ensures that games are captivating but also efficient and immersive, eliminating any issues with speed or lag. A prime example is MPL, a popular esports platform that utilizes cloud-enabled systems to introduce innovations and enhance user experiences in mobile games. Boasting 40 million subscribers, which reportedly contributed to 14 percent of India’s total mobile gaming market, MPL relies on various cloud services AWS provides. These services enable the platform to deliver sub-millisecond latency to players while maintaining an impressive app uptime of 99.9 percent. Additionally, the cloud-based infrastructure has empowered MPL to handle the significant scale and volume it experienced, reaching 10 million users within three months of launching the platform.
Another prominent example is Activision Blizzard, the publisher of the renowned Call of Duty video game series. They leverage the AWS platform to run real-time analytics and machine learning pipelines, delivering personalized experiences to millions of players.
In fact, a staggering 90 percent of the world’s largest public game companies are utilizing hyper scalers like AWS to develop faster, more reliable, more thoughtful, and more innovative gameplay for their players.
Cloud game streaming: The next big thing?
The concept of online streaming has been rapidly gaining traction in the gaming industry, generating significant excitement around “cloud gaming.” This innovative approach is predicted to revolutionize gaming by eliminating the necessity for local hardware, thus challenging the existence of traditional consoles.
Much like content streaming services like Netflix or Amazon, the backend storage and processing of the games happen in cloud data centers, while users can stream graphics onto their devices. Advances in cloud computing allow real-time inputs and ultra-low latency, which are gaming characteristics.
The mobile gaming industry already holds a significant share of nearly 50 percent of the overall gaming market. With the emergence of cloud gaming, a vast group of individuals who have never played video games before is anticipated to be drawn in, creating a direct-to-consumer market worth billions of dollars. The upcoming 5G networks are projected to expedite significantly and enhance this trend, opening up new possibilities and opportunities for the mobile gaming sector.
Several prominent technology giants and critical players in the cloud industry, including AWS, have made significant investments in cloud gaming. Amazon, for instance, has recently entered the cloud gaming market with its platform, Luna. Powered by AWS, Luna allows players to enjoy games on their preferred devices without purchasing costly hardware or enduring lengthy downloads and updates. Moreover, players can effortlessly transition from one screen to another, seamlessly resuming their gaming experience wherever they left off.
With powerful new entrants in the market, cloud-native games are predicted to disrupt the gaming space in the near future by redefining the gameplay experience. Mainstream gaming is set to transform into a new avatar, and it’s all thanks to Cloud!
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