Subscription and cloud gaming platforms continue to capture the attention of consumers, with a new report from Futuresource Consulting sizing the market at $6.8 billion in 2022. The specialist research house also expects market revenues to achieve $8.3 billion in 2023, as popularity maintains its surge.
“It’s been an action-packed year for platforms and publishers alike,” says Arian Bassari, Lead Analyst, Futuresource Consulting. “Despite Microsoft’s tumultuous legal process with the Activision Blizzard deal, GamePass has moved from strength to strength throughout 2023. It has expanded its content catalogue and successfully branched out across various hardware types beyond the traditional console.
“Sony’s PlayStation Plus underwent a revamp in 2022, with the company consolidating its library subscription and streaming service into one unified platform. Instead of attempting to match GamePass by offering first-day launch access and recently released titles, Sony expanded into three distinct tiers and focused on delivering variety through older titles and legacy content from the PS2 and original PlayStation.
“Meanwhile, in cloud gaming, NVIDIA’s GeForce Now maintains its dominant position, despite increased pressure from newcomers. We expect it to achieve another year of impressive growth in 2023, reaching close to 24 million consumers.”
Although the cloud gaming market displays strong growth characteristics, with a growing crop of brands offering services, it is not without its casualties. The prominent demise of Google’s Stadia, discontinued in January 2023, reveals the consequences of failing to capture enough consumer interest.
Futuresource notes that key market drivers include the expanding coverage of 5G. Its higher bandwidth is reducing framerate issues and latency problems for consumers using mobile devices. Automotive gaming presents another opportunity for a significant new market, if brands are able to overcome technological challenges and ignite consumer interest for in-vehicle gaming.
Brands like Tesla are incorporating Steam into selected models, while NVIDIA has partnered up with automotive brands like Hyundai and Polestar, leveraging GeForce Now to bring cloud gaming to the car.
“We’re going to see a lucrative future unfold,” says Bassari. “Console makers are placing even greater emphasis on their subscription services, and a growing number of competitive cloud services are emerging on PC and mobile. By 2027, we expect the total market for subscription and cloud gaming platforms to achieve almost $14 billion. That’s a serious slice of opportunity for savvy market players to wrap their brands around.”
For more information on Futuresource Consulting’s new global subscription and cloud gaming market outlook report, or to make a purchase, please contact Leon at firstname.lastname@example.org.
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