Check out my article on Gaming Business Review, wherein I play market analyst for a day and bash cloud gaming.
TL;DR: cloud gaming is based on decade-old assumptions and needs a major rethink. Meantime, beware the hype.
Why Cloud Gaming is a Non-Category, and How Networked Games Really Work
The recent acquisition of Gakai by Sony Computer Entertainment could be the sign of an impending bonanza for cloud-based gaming services. As reported in Engadget and elsewhere, the consumer electronics giant paid $380M for the streaming game service in order to deliver new entertainment experiences for SCE’s network. Sony stands to gain big from the operational efficiencies that Gakai’s infrastructure and team bring to the mix, and Gakai’s team got a well-deserved payday for building a great platform. But is this deal the beginning of a trend in cloud gaming, or the end of the line? [Read more…]