“Larger publishers would normally have more buying power to invest such amounts up front but the smaller developers would not. “However, today – cloud technology and the leasing of infrastructure means that smaller companies can get up and running for little investment upfront. “If the game does not succeed, then they simply shut off their services with the cloud provider.”
THE PRICE OF CLOUD GAMING There are two common types of business model around cloud gaming. Pay-to-play has users pay a monthly subscription fee for access to a service’s content – for example, OnLive’s PlayPack games bundle. However, it has proven to be a more natural fit for free-to-play titles. Many freemium games – where extra content can be bought via microtransactions – utilise cloud technology to reach as many gamers as possible. It also allows them to interact with each other no matter what device they’re on: FarmVilleusers on Facebook, for example, can still send gifts to those playing on iOS platforms. “Free-to-play is the fastest growing model,” explains Grimwood. “It allows gaming companies to not only attract the hardcore gamers, but it opens up the game to more casual gamers as well because they can play when they want, purchase what they want with no set monthly
CASE STUDY: ROKU
EVEN RETAILERS can participate in cloud gaming by selling devices such as Roku, a console that streams movies and games straight to the TV. There are currently two players available in the UK: the Roku 2 XS and the Roku LT. Each features over 150 channels while the 2 XS grants access to online entertainment content and games such as Angry Birds. Clive Hudson, vice president and general manager of Europe at Roku, says: “The way consumers access their media has evolved into a digital world where content is available at the click of a button. “Streaming is gaining in popularity. Cloud gaming and other cloud services can help grow Roku into an even more fully-featured platform that is more attractive to consumers and easy to market and sell for retailers. We believe any transition
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will be an easy one for all involved– and we will support retailers in any way that we can to ensure the transition towards cloud technology runs smoothly. “As we continue to move into the gaming space and bring games from portable devices to the TV, the opportunity to offer customers access to a wealth of content with one deal becomes incredibly valuable. Games are a very important part of
our platform and we expect games to grow on Roku, just as they have exploded on smartphones and tablets. “Currently our focus is on simple casual games – similar to Angry Birds. However, we see Angry Birds as just the beginning for Roku and we are spending a lot of time with major casual games publishers to make sure we have the best selection available. Because we have an open platform that’s easy to develop for, there’s no limit to how much our entertainment range can grow. “It’s a very exciting time for the television globally as it’s currently undergoing its biggest transformation to date with the popularity of streaming growing rapidly and we’re excited to play a part in this.”
what the most successful elements will become – any successful service will be seamless, easily accessible and just work intuitively.” But any uncertainty about the present does not diminish the potential for the future.
There is no greater proof about
OnLive is one of the best-known cloud gaming services, but the technology is sure to surface in other titles and platforms over the next few years
outgoings, which might deter this type of player otherwise.” Of course, there is a catch: cloud gaming is wholly dependent on the reliability of broadband connections. As StreamMyGame’s co-founder Joanna Softly puts it: “If your broadband network stutters when you are watching BBC iPlayer then you can be sure that cloud gaming will also stutter. You need premium broadband connections for cloud gaming and games streaming to work. “Broadband companies will have to expect, that just like streaming video, there will be high demand to stream games and they will have to adjust their data models to allow for this.”
But broadband connections and widespread penetration is improving all the time, and cloud computing
companies insist that as this strengthens, so does the potential for their services.
GETTING INVOLVED Companies are still working out what does and doesn’t work – cloud gaming is still being perfected. “We have to think about the audience, pricing models, ease of use and most of all, it should be something people don’t have to think about any more than they do turning on the TV to watch a show or firing up an app on their smartphone,” says Grove Gem’s Croft adds: “A more straight forward consumer offering – with minimal restrictions or ‘hoops to jump through’ – will assist in gaining momentum and increasing popularity. Gamers will determine
how relevant the technology has become than Sony’s recent $380m acquisition of Gaikai, and the benefits are plain to see in other markets. “We can already see things like Netflix and LoveFilm spreading in film and TV,” says Wisler. “And we’ve already seen what happened to the music industry. Technology enabled a lot of people to get access to entertainment and consume it when they want.”
Grove adds: “Cloud gaming is still in its infancy, but it’s growing quickly, and as broadband and mobile networks get faster cloud gaming will grow with them. As more TVs and connected devices make their way into the living room, cloud gaming will allow video games to be as accessible as TV channels are today. “Like any new technology it can
take time for people to get past the negatives and see the direction it’s going. But I think we’ve established it’s here to stay, whether it’s something you get involved with now or in a couple of years. “It’s going to be part of the landscape and everyone should be considering what it means to them.”
European VP and GM Clive Hudson says the inclusion of Angry Birds is just the beginning of Roku’s gaming offering