Cloud gaming is a next-generation technology with the potential to revolutionize the gaming industry. This technology, which allows gamers to enjoy a high-quality gaming experience anywhere without the need for high-performance hardware, is about to revolutionize the entire industry by overturning the conventional wisdom of gamers. This article explores in detail the current state and future of cloud gaming and the incredible possibilities it offers.
The Impact of Cloud Gaming: Smartphones as the Latest Game Consoles
Advances in cloud gaming technology are transforming smartphones into devices with the same capabilities as high-performance game consoles. This revolutionary change is having a profound impact on the entire gaming industry.

Freedom from hardware constraints
The most important feature of cloud gaming is that the game is processed on a remote server. This makes it possible to play the latest AAA titles regardless of the performance of the smartphone.According to a report by Fortune Business Insights, this innovation is expected to help the cloud gaming market grow at a CAGR of 37.91 TP3T from 2024 to 2032. It is projected to grow at a CAGR of 91 TP3T and reach $126.62 billion by 2032.
New in Xbox Cloud Gaming: Expanded Game Library
Microsoft is planning enhancements to Xbox Cloud Gaming. This new feature could allow users to stream games they own, even if they are not included in Xbox Game Pass. The ability to stream games and purchase Xbox Game Pass games through the Android app is also expected to make game play on mobile devices more accessible.
The Rise of Mobile Cloud Gaming
According to Report Ocean's analysis, the growth of mobile cloud gaming is driving the overall cloud gaming market. Developments in low-latency streaming protocols and cloud-based infrastructure have made high-quality gaming experiences possible on smartphones. For example, services such as Microsoft xCloud, Google Stadia, and NVIDIA GeForce Now allow console-quality games to be streamed and played on smartphones.
Synergy with 5G technology
The widespread adoption of 5G technology is expected to have a significant impact on the development of cloud gaming.
- High-speed, high-capacity communication: 5G is theoretically capable of delivering transmission speeds of up to 20 Gbps, which could significantly improve the image quality and responsiveness of cloud gaming2The following is a list of the most common problems with the
- low latency communication: 5G aims for ultra-low latency communications of less than 1 millisecond, which, if realized, could solve the latency problem that is the biggest challenge for cloud gaming.
- Innovations in Mobile Gaming: The widespread adoption of 5G will enable high-quality cloud gaming on the move, which could revolutionize the mobile gaming market.
- Increase in the number of simultaneous connections: 5G supports simultaneous connectivity of a large number of devices, facilitating the realization of massively multiplayer games.
- Projected Penetration Rates: According to the Ministry of Internal Affairs and Communications' White Paper on Information and Communications, Japan's 5G penetration rate is expected to exceed 301 TP3T in 2023 and reach 701 TP3T by 2026. With this penetration, the usage environment for cloud gaming is also expected to rapidly improve.
These factors make the widespread adoption of 5G technology a great possibility for the future of cloud gaming
Solving storage problems
According to Tomoyuki Nakatsubo, Senior Director of Ubitus, cloud gaming also solves the problem of storage capacity on smartphones. The latest games are large, and it has been difficult to install multiple games on a 64 GB device. Cloud gaming eliminates this problem because no installation is required.
Creation of new game experiences
The new Xbox Cloud Gaming feature will reportedly allow users to stream their own games as well, starting in November 2024. This will allow users to access their own game library and enjoy the latest games anywhere with a single smartphone. Thus, with the evolution of cloud gaming technology, the smartphone is evolving from a mere communication device to a multi-purpose entertainment device with the same functionality as a high-performance game console. This has the potential to bring revolutionary changes to the business model of the gaming industry and the gaming experience for users.

Future Possibilities of Cloud Gaming
Widespread use of immersive VR/AR games
Immersive VR/AR gaming is rapidly gaining traction, with VR headsets becoming more realistic and immersive experiences as their performance improves and prices drop. For example, shipments of Meta Quest 2 will exceed 15 million units by 2022, contributing significantly to the proliferation of VR games. In addition, the success of AR games such as Pokémon GO has made new gaming experiences that merge the real and digital worlds increasingly popular. Further proliferation is expected in the future with the advent of lighter and more powerful devices.
Personalizing the gaming experience with AI
Personalizing the gaming experience with AI analyzes player preferences and behavior patterns to provide an individually optimized gaming experience. For example, NVIDIA's DLSS technology uses AI to improve game graphics while optimizing performance. Microsoft's Project Paiselei also uses AI to make NPC behavior more realistic and enable natural interaction with the player. These technologies allow the game's difficulty adjustment and storyline to dynamically change as the player plays, providing a more immersive experience.

Business Model Transformation in the Gaming Industry
Expansion of Subscription Models
The expansion of subscription models in the gaming industry is remarkable, with services such as Microsoft's Xbox Game Pass, Sony's PlayStation Now, and EA Play growing rapidly. For example, Xbox Game Pass had over 25 million subscribers as of January 2022. These services are gaining popularity due to the convenience of access to a large number of games for a monthly fee and the benefits of instant play of new titles. In addition, advances in cloud gaming technology have made it possible for users without high-performance hardware to enjoy the latest games, further increasing the appeal of the subscription model.
Evolution of Microtransactions
Microtransactions are a mechanism for making small in-game payments to purchase items or content. In recent years, the form has evolved and become more sophisticated. For example, Fortnite's Battle Pass system offers players tiered rewards to encourage ongoing engagement. There are also attempts to leverage AI for dynamic pricing to offer optimal prices based on individual player behavior and propensity to pay. In addition, new forms of microtransactions are emerging that guarantee true ownership and scarcity of in-game items through the introduction of NFTs using blockchain technology.

Conclusion: Changes in the gaming experience after 2024
The evolution of cloud gaming has the potential to transform the gaming experience. We are approaching an era in which people will be able to enjoy the latest games on their smartphones without having to own a high-performance gaming console. This transformation may also change the lifestyle of gamers. It is expected that gamers will be able to enjoy the latest games while commuting, during breaks, and even while traveling, thus diversifying the ways in which they enjoy games. The cloud gaming market is expected to grow rapidly. It is important to keep an eye on this change and be prepared for new gaming experiences. The new era ushered in by cloud gaming is just around the corner. How should we face the possibilities that this innovation will bring?
https://www.reportocean.co.jp/industry-reports/cloud-gaming-market
https://gigazine.net/news/20241012-xbox-cloud-gaming-stream-own-games/
https://newscast.jp/news/6643826
https://www.soumu.go.jp/johotsusintokei/whitepaper/ja/r03/html/nd252120.html
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