Newzoo has presented three scenarios for the development of streaming streaming until 2023

Newzoo analysts have prepared three forecasts for cloud market revenues until 2023. According to the most realistic, the segment’s revenue will grow 20 times by the specified year.

Last year, the cloud market generated $158 million. Now Newzoo sees three possible scenarios of how the segment will develop further.

Basic forecast

  • In 2020, the market volume will be $356 million.
  • In 2023, its revenue will increase to $3.2 billion.

According to Newzoo, such a scenario will be possible if the current growth rates continue.

Optimistic forecast

  • In 2020 — $459 million in revenue.
  • In 2023 — $5.1 billion.

This scenario seems realistic to analysts due to the following factors:

  • The release of Google Stadia showed that the underlying cloud technology can be scaled globally. Although, we recall that the site had technical problems at the start. But still, now nothing prevents other companies from deploying and globalizing their own streaming services;
  • publishers of existing cloud services have begun to change their content strategy in order to retain gamers (for example, PlayStation Now, began to replenish its catalog with AAA projects).

Pessimistic scenario

  • In 2020 — $187 million.
  • In 2023 — $1.5 billion.

Despite the above factors, a number of cloud platforms have recorded a gradual outflow of players. For example, Stadia (because of the small and rarely replenished library) and GeForce Now (because of licensing problems, which wrote here).

If players cannot be retained, then the growth rate of the cloud infrastructure will decrease. The situation is also affected by the global deployment of 5G networks. If this process is delayed, it will have a bad effect on the dynamics of revenue “in the cloud”.

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