Capturing gaming revenue opportunities
Cloud gaming subscriptions are rising fast in North America. Our latest report explores how this segment represents huge revenue potential for service providers.
Unlocking the next level path to monetizing 5G
Cloud gaming is a revolutionary technology, enabling gaming on any device via an internet connection with quality of experience (QoE). Gamers will no longer require a physical copy of a game or need to download a digital copy to their consoles, PCs, or smartphones. Instead, for a subscription fee, cloud gaming enables enthusiasts to play games from anywhere, using their current devices, without the need to buy expensive high-end equipment.
Although cloud gaming has only recently emerged, subscriptions are expected to pass the 15 million mark in North America alone by the end of 2022. In the next decade, this figure is expected to pass 99 million, propelled by five key drivers – increased focus on mobile gamers, attractive gaming subscriptions, a shift in gamer preferences, a maturing cloud services ecosystem and rapid adoption of 5G.
This boom in cloud gaming represents significant potential for service providers because they can provide, and monetize, several capabilities such as network slicing and edge computing which banish the enemy of all gamers – lag.
The game-changing opportunity for service providers
InCode studied the major drivers of cloud gaming and forecasted its adoption in North America:
- Cloud gaming is expected to account for approximately 23 percent of 5G subscriptions in North America by 2031
- inCode identified two cloud gamer segments for enhanced 5G connectivity: one willing to pay USD 10.99 more for an advanced performance gaming slice, and another willing to pay USD 5.49 more for a moderate performance gaming slice, on top of a 5G subscription
