Will the Next Video Game Revolution Take Place Somewhere in the Cloud?

  • Hardware has always played an important role in the gaming sphere, often dictating capabilities and prominence. All that may change, suggests Fortune, as cloud computing enters the scene.
  • “So-called cloud gaming involves a kind of apostasy,” the article states. “The more technical wizardry inside the , the more fantastic the graphics displayed on-screen. (And the higher the price.) In contrast, cloud games are rendered by remote servers that beam images to screens over the Internet.”
  • Cloud computing has the potential to make gaming operate like streaming video services. But not without obstacles to overcome such as high quality graphics overwhelming data lines and delays or glitches from network lags, Fortune points out.
  • Despite challenges, companies like OnLive and Otoy have made a name for themselves with their successful cloud rendering platforms. Also, Sony recently purchased Gaikai, which streams high-quality games via Java, in a move that validates the cloud gaming business.
  • David Dennis, the senior group manager for Xbox, is not sold, however. “A model where someone is playing a AAA blockbuster game where there could be latency issues — and by the way, while they’re playing, they’re running up the meter on their broadband, adding huge, incremental costs on top of their standard broadband bill — is not an infrastructure or model that scales on a consistent global level.”
  • For now, Microsoft plans to promote online features like saving game data, distributing digital games and streaming content — i.e., features that don’t require high-speed fiber connections.
  • Even so, cloud companies like OnLive threaten to overthrow the current gaming market by making expensive hardware obsolete. This could mean pricey acquisitions in the near future, especially as physical content sales continue to decline.

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