Cloud gaming: Stadia, an example of an unforgiving market

Cloud gaming: Stadia, an example of an unforgiving market

Google is not the first company to stumble upon this market. What factors explain the difficulties of finding a place there?

Before I launched Blacknut in 2016, I looked through the company’s entire corporate graveyard. cloud games who had started earlier. I was particularly interested in OnLive at the time and contacted the leaders to understand why it wasn’t working. to serve cloud games There are three pillars to success: content, infrastructure and market access. Most failed services appealed to a user base players. Or create a service for players It is a prerequisite for many factors that will contribute to the service’s failure later on.

if we take playersYou must have the games. players. This means that you should get the largest licenses, which are the most difficult to obtain and the most costly. This includes huge investments. Then, you must have an infrastructure for it. players. Since the latter already has their console, its service cloud games it should have a level of quality almost equivalent to that of the console. It’s super hard because cloud games it stays connected to the network, bandwidth… It’s complicated.

That’s why you have to have the best games, but for that you need the best infrastructure that encourages monstrous investments. It also means addressing console gamers as a reference to an audience that is most difficult to satisfy. OnLive collapsed here because it incurs horrendous investment costs in content and capital expenditures. Also, there was neither bandwidth nor fiber back then. As such, it was very difficult to appeal to its user base.

The same problem arose for Shadow. The promise was to deliver a state-of-the-art computer in the cloud, but marketing such an offer for just a few tens of euros a month did not work because the promise was not kept. Having the latest PC in the cloud always means investing in the latest graphics cards. It got complicated over time.

As for Stadia, the problem was different. It went all the way to the infrastructure, but there was no console to meet the supply or demand of the content. Unlike Shadow, Google had the infrastructure, but its content offering killed the service.

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