Three cloud gaming business models

Three cloud gaming business models

Source: STL Partners, Shadow

Advances in telecoms networks and cloud computing are enabling the emergence of cloud gaming, where games are stored and run on a remote computer and results are live-streamed to a gamer’s local screen. This means gamers no longer need dedicated, high spec gaming hardware, only a good quality internet connection. Although cloud makes high-end gaming more affordable, delivering a quality experience on-the-go (rather than at home on a fibre connection) will require denser 5G and edge computing deployments.

On the business model, most cloud gaming providers currently bundle content and platforms into a subscription-based consumer proposition, but new variants are emerging. For example, Shadow introduced a platform-only proposition, where gamers bring their existing games library (from multiple publishers) to a cloud-based PC. Each proposition appeal differs by gamer segment. For example, hardcore gamers are likely to prioritise access to their chosen games library and therefore prefer traditional or cloud PC gaming , while casual gamers may value device and location flexibility offered by full cloud gaming more than choice of games.

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Liam Mimnagh


Liam Mimnagh

Senior Analyst

Liam has been working in telecoms industry research for over 15 years and has spent most of that time covering consumer, strategy and operational activities of telecom operators globally. His primary interest lies in areas of consumer innovation and product development activities of MNOs. Liam holds a BSc (Hons) in Marketing from Technological University Dublin and an MSc in e-commerce from Dublin City University.

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