Cloud Gaming Market Size

Cloud Gaming Market Size

Cloud Gaming Market size surpassed USD 1 billion in 2018 and is anticipated to grow at a CAGR of more than 30% from 2019 to 2025. 

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The advent of 5G technology has marked a new beginning in the connectivity landscape and brought about a fundamental shift in the gaming industry. Countries around the world are investing in 5G technology to gain broader microeconomic benefits. Countries such as China, U.S., South Korea, and Japan have made significant strides toward bolstering the 5G infrastructure in the country. 5G technology is a next-generation wireless technology that can enable faster data transmission speeds. As the cloud gaming technology requires high transmission speeds of over 10 Mbps, the deployment of the 5G infrastructure serves as a key enabling factor, allowing companies to launch their platforms in the region. The 5G technology also effectively deals with various latency issues, providing users with a seamless gaming experience, promoting the usage of cloud gaming platforms.
 

In the current scenario, purchasing a high-end gaming system requires substantial investments. The assembly of a typical low-end gaming system along with the right consoles will cost over USD 300 to 400. The top-end gaming machines range from USD 4,000 to 5,000. The average gamer usually invests USD 800 to 1,000 in purchasing or assembling a gaming system. The prices of the gaming components fluctuate from year-to-year and generation-to-generation. The price surge associated with gaming systems is preventing its adoption in over 70% of its potential customers. Over 60% of the users across the globe do not have access to computer systems that can handle demanding requirements of the AAA level games at acceptable quality. The cloud gaming model can allow companies to increase their profitability, gaining access to various new potential customers.