Cloud gaming is the future of game monetization, not gameplay

Comment

When you look at all of the tech trend stories of the past decade, one important saga that’s likely to be overlooked is the platformization of gaming. In the 2010s, the value of video games was realized in a way that completely transformed how the majority of users experienced sitting down with their favorite FPS or RPG.

The gaming industry questioned everything about the gaming experience in the past decade, but only in the past year have there been earnest efforts from major players to rethink where the game was actually rendered. Google Stadia isn’t the first cloud gaming effort by any means, but the platform, where games are rendered on remote servers and streamed to users’ screens over the web, was one of the most-talked about gaming announcements of the year.

The platform has already launched and everything is smooth enough, but the platform won’t fail because of quirks, it’s the fundamentals that lead me to believe it’s something Google won’t continue to support. Google doesn’t have an awesome track record in boldly committing to gaming efforts that don’t show good traction within a year or two of launch. For almost all products, that’s a completely reasonable time frame to give an effort, but when Google sells a vision of the near-term future that isn’t quite ready, the company seems to be susceptible to throwing in the towel entirely if the timing isn’t right at launch.

The company’s Daydream VR gaming platform was unveiled three years ago only to be seemingly abandoned less than 18 months later. This year, Google announced it wouldn’t be certifying any new devices for the platform and discontinuing sales of its own headset. I wouldn’t be surprised if this is the fate Stadia shares. Cloud gaming is obviously far less niche than mobile VR, especially in the near term, but they both share the distinction of being platforms that don’t really enable experiences that users feel they need.

Cloud gaming brings a lot of technology into the fold, but the fundamental advance is that it can reduce friction in the user experience.

The interpretation of where that friction is best reduced seems to be what separates the current players, including most notably Google, Microsoft and Sony. Facebook also bought a cloud-gaming startup this month, so expect some developments from them in the future.

Facebook acquires Madrid-based cloud gaming startup PlayGiga

While Sony and Microsoft both operate established platforms, Google (and perhaps down the road, Facebook) wants to use cloud gaming tech as a way to leverage an adjacent technology (in Google’s case, Google Cloud tech; in Facebook’s case, it would likely be their social graph) in order to realize their long-held desires to build a consumer gaming platform.

Stadia is in the unfortunate position of having to hold all of these ambitions at launch which means that the cloud has to be the solution to more user experience problems than currently exist. Stadia banks hard on the idea that allowing gamers to play games across devices will bring them in droves but playing console quality titles on mobile devices really isn’t something gamers have indicated that they’ve wanted. Dealing with the ISP quirks that come from streaming 4K footage over long sessions arguably adds that friction back into the gameplay experience.

Microsoft and Sony have well-established platforms that can lean on cloud gaming to solve different, more-focused, problems for them, namely getting users to play more titles with less friction from downloads. For existing platforms, it’s a way to reshape purchasing habits and when combined with subscription platforms it’s something that could be a major boon to indies that might not have gotten the time of day beforehand. Stadia has a limited bit of this benefit as well inside YouTube Gaming, but its new-mover advantage isn’t bringing a lot to the table to coax new users into buying games on the platform in the first place.

As is so often the case with “the next big tech advance,” cloud streaming tech is much more likely to become the next big feature of a more traditional platform rather than the entire platform itself. Existing platforms don’t have to worry as much about user complications with internet speeds and data caps because ultimately it’s an auxiliary service that doesn’t have to work for every user. Google doesn’t have that luxury.

Whenever a developing technology crosses that threshold for usability, it’s natural that a tech giant with deep pockets is going to try to swing in and steal incumbents’ lunches. I really don’t think Google’s going to pull this off though. Google has enough existing infrastructure with Google Cloud that this won’t be a terrible expenditure if things go south but they might end up owning a few game studios they don’t know what to do with when the dust settles, as is already the case with VR.

More TechCrunch

Booking.com has been designated a gatekeeper under the bloc’s Digital Markets Act (DMA), meaning the online travel agency will face regulation under the bloc’s market fairness and contestability framework —…

Booking latest to fall under EU market power rules

Featured Article

‘Got that boomer!’: How cyber-criminals steal one-time passcodes for SIM swap attacks and raiding bank accounts

Estate is an invite-only website that has helped hundreds of attackers make thousands of phone calls aimed at stealing account passcodes, according to its leaked database.

40 mins ago
‘Got that boomer!’: How cyber-criminals steal one-time passcodes for SIM swap attacks and raiding bank accounts

Website builder Squarespace is going private in an all-cash deal that values the company on an equity basis at $6.6 billion, or a $6.9 billion enterprise valuation. The acquiring company…

Permira is taking Squarespace private in $6.9 billion deal

AI-powered tools like OpenAI’s Whisper have enabled many apps to make transcription an integral part of their feature set for personal note-taking, and the space has quickly flourished as a…

Buymeacoffee’s founder has built an AI-powered voice note app

Airtel, India’s second-largest telco, is partnering with Google Cloud to develop and deliver cloud and GenAI solutions to Indian businesses.

Google partners with Airtel to offer cloud and genAI products to Indian businesses

To give AI-focused women academics and others their well-deserved — and overdue — time in the spotlight, TechCrunch has been publishing a series of interviews focused on remarkable women who’ve contributed to…

Women in AI: Rep. Dar’shun Kendrick wants to pass more AI legislation

We took the pulse of emerging fund managers about what it’s been like for them during these post-ZERP, venture-capital-winter years.

A reckoning is coming for emerging venture funds, and that, VCs say, is a good thing

It’s been a busy weekend for union organizing efforts at U.S. Apple stores, with the union at one store voting to authorize a strike, while workers at another store voted…

Workers at a Maryland Apple store authorize strike

Alora Baby is not just aiming to manufacture baby cribs in an environmentally friendly way but is attempting to overhaul the whole lifecycle of a product

Alora Baby aims to push baby gear away from the ‘landfill economy’

Bumble founder and executive chair Whitney Wolfe Herd raised eyebrows this week with her comments about how AI might change the dating experience. During an onstage interview, Bloomberg’s Emily Chang…

Go on, let bots date other bots

Welcome to Week in Review: TechCrunch’s newsletter recapping the week’s biggest news. This week Apple unveiled new iPad models at its Let Loose event, including a new 13-inch display for…

Why Apple’s ‘Crush’ ad is so misguided

The U.K. Safety Institute, the U.K.’s recently established AI safety body, has released a toolset designed to “strengthen AI safety” by making it easier for industry, research organizations and academia…

U.K. agency releases tools to test AI model safety

AI startup Runway’s second annual AI Film Festival showcased movies that incorporated AI tech in some fashion, from backgrounds to animations.

At the AI Film Festival, humanity triumphed over tech

Rachel Coldicutt is the founder of Careful Industries, which researches the social impact technology has on society.

Women in AI: Rachel Coldicutt researches how technology impacts society

SAP Chief Sustainability Officer Sophia Mendelsohn wants to incentivize companies to be green because it’s profitable, not just because it’s right.

SAP’s chief sustainability officer isn’t interested in getting your company to do the right thing

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls