A recent report by the Amsterdam-based market research company Newzoo forecasts the global cloud gaming revenue to touch $1.4 billion by the end of this year, a growth of 125 percent from 2020.
Fuelled by the movement restriction brought by the COVID-19 pandemic, the cloud gaming market is on track to cross the $5 billion mark in 2023 as technology and infrastructure continue to improve, the report states.
“Continuous developments and innovation across the sector mean the cloud gaming market’s revenues and potential will continue to skyrocket. Part of 2021’s massive jump in revenues is due to increased cloud gaming activity from companies big and small, as we expected in last year’s report simply put, cloud gaming is here to stay, and its importance and prominence will only grow.”
Cloud gaming which is also called gaming-on-demand or gaming-as-a-service, runs video games on remote servers and streams them directly to a user’s device.
In the last few months, the consumer appetite for cloud gaming surged rapidly especially due to the creation of new platforms like Microsoft’s xCloud as part of Xbox game pass ultimate and Nvidia resolving the early licensing issues with its GeForce Now. The eCommerce giant Amazon and social networking platform Facebook also entered into the market with their own cloud gaming services.
Newzoo’s report further predicts that, due to the high frequency of new services and the big feature improvements for existing ones, there will be 23.7 million paying cloud gaming users by the end of this year.
“2020 has been a year full of fantastic achievements for us, business-wise. Having so many people that were suddenly stuck at home was an opportunity of a lifetime for all companies offering entertainment services,” Andreas Hestbeck, chief executive of Poland-based RemoteMyApp, a cloud gaming solution and gaming content aggregator, said.