Cloud Gaming and Its Effects on the Industry

Jonatan Parski CEO

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Cloud Gaming and Its Effects on the Industry

Over the past couple of years, the gaming industry has grown significantly. The last few years might have had significant effects. However, the technological advancements in video game files certainly affect the industry. One such advancement is the implementation of cloud gaming services. What are these platforms, how to use them, and what are their benefits? Let’s find out!

What Is Cloud Gaming?

Cloud gaming technology uses remote servers to offload game processing and gives players instant access to all high-quality games over the web. You don’t need an expensive computer setup or the latest game console to play these video games or console games. 

The only requirement for these services is a fast internet connection that can handle the connection between you and the server. It’s similar to video-streaming services like Netflix. The difference with these services is that instead of having a one-directional content delivery, it has a two-directional process of receiving and sending data. 

How Does It Work?

A vast, centralized server transmits games to your computer or smartphone via a cloud service. The procedure is similar to streaming music or movies, except a high-speed Internet connection is required. 

This implies that when a player enters data into a game, everything takes place in milliseconds. The connection must be fixed. If there’s any lag between when a player offers input and when the visual displays on the screen, then that means there’s a problem with the connection.

How cloud gaming works
How cloud gaming works

Cloud gaming has two methods of working: command streaming and video streaming.

Command Streaming: with this method, the game logic and graphics are sent to the player’s device, where the hardware transforms the instructions from the server, converting them into playable content. This method is suitable for players with a slow internet connection, but it stresses the user’s hardware more.

Video Streaming: video streaming is the opposite of command streaming. It processes everything on the remote servers and delivers just the video signal to the players. This is the best option for users using weaker systems, like PC sticks or low-end laptops or PCs. But they need a strong internet connection to receive and send data. 

It Will Change the Gaming Industry

Remote services will change the game industry. As music and video streaming platforms become mainstream, pushing away older technologies and ways of listening to music and watching movies, remote server platforms will change how players play their favorite games. 

The cloud services will allow gamers direct access to the latest titles without buying or downloading them on their local drives. This means that platforms like Steam might be in danger. 

Cloud Gaming Market
Cloud Gaming Market

Moreover, cloud gaming platforms will forever change how we play games. These kinds of services offer seamless portability. Everything gets saved on the cloud without buying high-end local hardware or filling your device’s storage with game files. With this in mind, we can say that companies that sell game consoles and computers might lose their business because players would no longer need these powerful machines to run the latest AAA titles. 

Cloud services will allow players to play video games with a monthly subscription, meaning how we pay for games will change forever. Users can pay the subscription whenever they want instead of buying a copy of every game individually. 

While cloud gaming is one of the most critical themes in the game industry today, it’s still far from perfect, and we don’t expect it to replace the current “traditional” gaming methods. 

With the continued spread of 5G networks, we might start seeing faster internet speeds, which will “prepare the soil” for future cloud gaming providers. 

Is Cloud Gaming the Future?

While cloud gaming has seen tremendous usage and market growth in the past few years, it’s still far from perfect. We’ve seen many devices and platforms said to be the new big thing just disappear after one or two years. That’s why the future of cloud technology is still blurry. But we can say that it has the potential to change the whole gaming industry forever. 

The most significant advantage of remote gaming over conventional gaming is its remote. Currently, most games are being played on mobile devices or consoles. For example, smartphones or Nintendo Switch are widely used now. 

Will It Be Able to Replace On-device Gaming?

This currently needs to be determined. We see a lot of potential in remote gaming. But how video games get bought and played hasn’t changed that much since the start of the gaming industry. We still purchase copies of the games, but instead of them being on floppy disks or CDs, they’re digital. We still play these games on our devices, whether computers or consoles. We still haven’t seen the next big thing to revolutionize the worldwide gaming industry. 

We can think of it like this: Even though almost everyone has a TV at home and an endless library of movies and TV series, we still go to the cinema now and then to watch a movie. This shows that even tho we have a faster, cheaper, and more convenient way to watch a movie, sometimes it’s just better to do it the old-school way. 

Advantages of Cloud Gaming

Now that we talked about cloud gaming and how it works, let’s see if it has any significant advantages over conventional gaming. We’ll cover the most critical aspects of the gaming industry, such as speed, pricing, availability, etc. 

No Device Limitation

As we mentioned earlier, conventional gaming relies solely on the devices that the player has. If your computer or console is too old for a particular game, you just don’t have a way to play it. 

The only possibility that you have is to go and buy newer hardware so you can run the high-end games. With the help of cloud platforms, this could never happen. You can stream games on any internet device, even a cheap PC stick with a TV, and still play the latest PC or console games. 

Game Security and Reliability

With remote gaming, all the data gets saved on secure remote servers. Data transfer is also done on secure networks, which brings the chance of hacking to almost 0%. Moreover, the fact that game data gets stored in the cloud means that you don’t need to create backups and eliminate the fear of accidentally deleting a critical saved file. 

Nothing is worse than seeing your hard drive corrupted and losing all your game saves. With remote gaming, this is impossible. Nothing gets stored on your device, so even if it breaks or a system error occurs, you have all the information and data stored in the cloud. 

Best Possible Pricing

With how the gaming industry is set up now, you must pay for everything. You must buy good enough hardware, PC or console, to run the latest games. Then you need to buy the actual games. 

After some time, when you stop playing them, they just sit there and “collect digital dust.” With cloud gaming, you’ll have the availability to pay a monthly or annual subscription and get access to all the games on the cloud server. 

Triple-A Games Available Everywhere

You’ll only succeed a little if you try playing console games on your mobile phone. With cloud technologies, you can play games like Forza Horizon, The Witcher, Tomb Rider, and many more whenever and wherever you feel like it, similar to the iGaming industry.

With the implementation of 5G connections, cloud gaming will get more traction, becoming the better choice for players who like to play mobile games. 

Disadvantages of Cloud Gaming

While cloud gaming has some severe pros over traditional gaming, it still has flaws. One of them is connected to the internet requirements for the games. While this isn’t an issue at most times, provided that you have fast and stable internet speeds when the servers get loaded. 

However, the gaming experience can drastically decrease if you can’t maintain a fast and stable connection. Games start to stutter, quality drops to make up for the poor connection, and you can even get kicked out of the game server if the connection drops. 

Another con of cloud computing platforms is that you won’t be able to play games offline. Some players don’t always want to be connected to the server and like to have a pleasant and calm offline experience or just lose the internet signal. 

If you rely solely on remote gaming, this essentially means that you won’t be able to play anything, regardless if it’s an online or offline game. 


Cloud gaming has the potential to substantially alter the way customers interact with video games. It might have a tremendous influence on the gaming ecosystem and introduce the business to a whole new market. Because most casual gamers use mobile phones, they must be encouraged to play on a cloud gaming service. 

The ease of the cloud gaming service may take time to become apparent to them. But it’ll undoubtedly entice them with promises of platform access, instant access, no need to download updates, and no slowing down as devices age.  

Technology must be communicated to various users in several ways as technology advances. Users are tempted to use the product by emphasizing its frictionless benefits, such as instantaneously having an app on a consumer’s device, such as a smart TV.

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Chantelle started her career in IT before eventually finding her way into Marketing. This eventually became her passion, along with Digital Marketing, SEO, and Brand and Web Development. Today, she helps businesses find their voice and grow online.

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