The days of players investing $400 on a brand-new gaming console and after that paying $60 for each new title may be pertaining to an end. As people have grown familiar with streaming unlimited motion pictures and music, video gaming seems to be the next entertainment medium all set for a subscription-based design.
The dominant console makers, Microsoft( NASDAQ: MSFT) and Sony( NYSE: SNE), currently use Xbox and PlayStation owners a subscription gaming service with Xbox Video game Pass and PlayStation NOW, respectively, but these services have yet to gain mass appeal. Both services are connected to a particular ecosystem, which restricts their reach, and there’s likewise the concern with streaming quality.
Alphabet‘s ( NASDAQ: GOOG)( NASDAQ: GOOGL) Google is offering something far more robust. With the search giant’s enormous budget for data centers and cloud innovation, it’s looking for to interrupt the gaming industry with a feature-rich cloud gaming service called Google Stadia
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On paper, Google Stadia is outstanding with the integration of social sharing functions and the ability to jump into a video game by just clicking a link on YouTube. It’s clear that Google Stadia is a service eventually created to develop engagement on YouTube and grow advertisement revenue.
However, there are four major challenges Stadia should get rid of to win over gamers.
1. Technical issues
Evaluations were mostly positive from those who got an early sneak-peak at the service throughout its unveiling in March. According to very first impressions, games look good the majority of the time, about on par with a video game working on a PC or console, however there are circumstances where the quality of the gameplay falters. The problem that sneaked up is what’s called input lag, where there is a perceptible hold-up between the time the player presses a button and the instant the video game signs up that action on the screen.
Input lag is a common issue with game streaming services where the game is not working on a local hard drive but miles away on a supercomputer and after that streamed back to the gamer’s screen. Streaming video games need advanced processing technology than streaming material from Netflix, for instance. Even when a player has a trusted high-speed web connection, input lag can be an issue.
At the Stadia announcement event, Google guaranteed hands-on reviewers that input lag would not be a problem when the service goes live. Google has spent billions of dollars over the years on information centers; not to mention, well, it’s Google– the business knows a thing or 2 about the internet and the cloud.
Nevertheless, video game streaming has gotten a bad rap among gamers for the poor quality of existing services. As an outcome, there remains as much skepticism as optimism in the video gaming community about Stadia, which frame of mind, alone, may prevent gamers from registering when it introduces later on this year.
2. The multi-player crowd will be a hard sell
The millions of gamers who play battle royale video games, such as Fortnite and Pinnacle Legends, along with team-based shooters like Overwatch, are likewise going to be a difficult cost Stadia. These are a few of the most played video games in the market, and they also need continuous, smooth gameplay for the very best user experience. The track record of game streaming services for delivering irregular performance will likely keep Stadia from reaching mass appeal and becoming a game changer for the market when it launches later on this year.
3. Is Stadia worth it?
My coworker Timothy Green pointed out the issues about Arena’s potential expense, however there’s likewise the issue of video game choice. For instance, will Electronic Arts( NASDAQ: EA) want to put its best-selling games like Madden, Battleground, and FIFA on Stadia, or will they take a page from Walt Disney‘s playbook by keeping the very best titles exclusively available on its own subscription services?
A bigger challenge is the growing popularity of free-to-play titles. Popular games like League of Legends, Peak Legends, and Fortnite do not cost a dime to play. Therefore, a membership service is going to appeal less to players who play these titles regularly.
4. There’s more video game streaming services coming
Finally, other tech heavyweights are working on cloud gaming, including video game maker Electronic Arts (Job Atlas), Microsoft (Job xCloud), and Chinese tech giant Tencent Amazon.com( NASDAQ: AMZN) may eventually enter the race, provided its competence in cloud services with Amazon Web Services and the company’s “all-in” state of mind with Amazon Video Game Studios It’s possible these companies that have years of experience investing in the video gaming market might take one take a look at Google Stadia and be ready to come out with something better.
If there are 2 companies associated with video gaming that can provide a much better service than Google, it’s Microsoft and Amazon, which are both way ahead of Google in the cloud market. I would watch Amazon, provided its propensity for determining ingenious methods to delight its customers with value and benefits through its Prime service. Amazon has incorporated Twitch, the video game streaming website, with Prime, and the company would likely do the exact same with a gaming offering.
It’s still early
There’s a great deal of unknowns about cloud video gaming at this point. With enough time and financial investment, I believe the big tech companies will be able to get rid of the technical issues and provide the gameplay experience consumers anticipate. But with a lot of business dealing with this technology, in addition to Microsoft and Sony currently getting ready to announce their next generation consoles in the next couple of years, it’s most likely going to take a while for cloud video gaming to gain considerable traction.
John Ballard owns shares of Amazon, Electronic Arts, and Walt Disney. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Microsoft, Netflix, Tencent Holdings, and Walt Disney. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, belongs to The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. John Ballard owns shares of Amazon, Electronic Arts, and Walt Disney. The Motley Fool owns shares of and advises Alphabet( A shares), Alphabet (C shares), Amazon, Microsoft, Netflix, Tencent Holdings, and Walt Disney. The Motley Fool advises Electronic Arts. The Motley Fool has a disclosure policy