Newzoo has shared new data on the cloud gaming market, saying that global revenues in the area will quadruple by 2024. According to analysts, this industry segment has reached an inflection point.
Key takeaways from the report
- 21.7 million paying users spent $1.5 billion on cloud gaming services in 2021.
- The number of paying users will almost triple to 58.6 million subscribers by 2024, Newzoo estimates. They will spend a total of $6.3 billion on cloud gaming services.
- These projections, along with the current trends, indicate that the cloud gaming ecosystem is now more stable and healthier than ever.
- Newzoo cited the importance of hardware in data centers, cloud gaming services’ integration with TVs, the emergence of strong independent services, and M&A activity among the key trends in the area.
- Capacity is still the biggest challenge cloud gaming services face. The constant need for a balance between technical performance, flexibility, and cost led to many early platforms closing.
- However, analysts still believe that cloud gaming’s future is bright as these services continue to attract new players and are now spreading to consoles, TVs, mobile, and other devices.