View full issue

This link was published in:

The End of Inbox

by M.G. Siegler


The Videogame Industry Reaches for the Cloud

Jack Hough:

The cloud is the future of videogaming, and it could arrive sooner than many players expect, with important implications for investors. Once pricey hardware is no longer necessary and top-tier games can run on two year-old smartphones, even casual gamers will become candidates for the latest releases from Electronic Arts and its peers.

Seems like this is being under-hyped for some reason, but it points to a massive shift for an entire industry (and could catapult Microsoft from an also-ran into the most important player simply due to Azure, pretty quickly). And, in fact, will likely greatly expand said industry. An already massive industry...

That will expand what is already an enormous business. For all the attention paid to Hollywood celebrities and movies, games played on personal computers and consoles, such as the Xbox One and PlayStation 4, will bring in an estimated $67.5 billion this year, according to Dutch research group NewZoo—perhaps $25 billion more than films’ worldwide box office receipts. And mobile games will make more than PC and console games combined.

This isn't a new stat, but it nonetheless remains startling. For as much hype as Hollywood gets, videogaming is a far bigger industry, with the gap only getting wider each year.


Want to receive more content like this in your inbox?