Newzoo: revenue of the cloud gaming market will exceed $500 million by the end of the year

A new Newzoo study has shown the dynamics of the cloud gaming market. It is assumed that by the end of this year, revenue from such services will reach half a billion dollars. At the same time, this area still has a lot of problems that companies have yet to solve.General data and forecasts

in 2019, revenue from cloud gaming services in the world amounted to $170 million.

• Since then, the market has been growing rapidly and continues to develop actively;according to Newzoo forecasts, by the end of 2020, this market will generate revenue of $584.7 million;
• two-thirds of the amount will fall on Western countries (39% on North America and 29% on Europe);
• analysts also believe that by 2023, the market’s revenue will reach $4.8 billion and continue to grow at the same rapid pace.
• Revenue of the cloud gaming market

Ecosystem problems

Newzoo notes that now cloud gaming services are far from becoming “Netflix for Games” — both in terms of business models and user convenience;

• many gamers still believe that the quality of such services leaves much to be desired.
• Representatives of Antstream, which specializes in streaming arcade and retro games, note: “Debunking this preconceived opinion is one of our main problems”;Polystream, in a conversation with Newzoo, stated that cloud gaming services should provide players with a “completely new experience” and use all the advantages of such technologies.
• Key growth factors

The COVID-19 pandemic has had an impact on the entire video game industry, and many companies have shown record revenues.

• The same applies to cloud gaming, which allows people to play new games without buying expensive PCs.;adding the xCloud cloud service to the Ultimate Xbox Game Pass subscription.
• Thus, Microsoft attracts additional attention to its service;a growing number of new services from smaller companies, especially in emerging markets.
• Also on the topic:
  

• Apple: Cloud games won’t appear on iOSUbisoft may launch a Cloud gaming platform
• The cloud gaming market will reach a turnover of $56.6 billion by 2027
• Is there any news?