Despite the recent shutdown of Google Stadia, cloud gaming is a rapidly growing segment of the games industry. According to Newzoo, this market will reach $2.4 billion in revenue by the end of this year.

Xbox Cloud Gaming

  • As reported by Newzoo, the cloud gaming market will grow 74% this year. Revenues are expected to grow at a 51% CAGR, reaching $8.2 billion in 2025.
  • In 2020, global cloud gaming revenues were $633 million, growing to almost $1.4 billion last year.
  • Asia-Pacific is the number one region by cloud gaming revenues, accounting for 36.5% of total spending. It is followed by Europe (30.3%) and North America (27.1%).

  • The market will reach 31.7 million paying users in 2022. The number will likely grow to 86.9 million by 2025.
  • In 2022, cloud gaming’s serviceable obtainable market (SOM) — the number of people who live in areas where cloud gaming is available and have interest in it — will reach 220.2 million.
  • Asia-Pacific accounts for almost half of this number, followed by Europe (17.4%), Latin America (14.4%), and North America (8.5%).
  • The SOM is expected to reach 464.9 million in 2025.

Newzoo also noted that it was unnecessary to adjust its forecast in the wake of the Google Stadia shutdown because its market share was minimal. “Some current Stadia users might exit the cloud gaming market following this announcement, but we expect the vast majority to simply switch to another cloud gaming service,” the report reads. “After all, barriers to entry have been steadily decreasing across the cloud gaming market and consumer satisfaction with the tech is generally high.”

More data, including interviews with industry experts, can be found in the full report.

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