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Streaming from the cloud was meant to change games forever – what happened?

Streaming from the cloud was meant to change games forever – what happened?

Summary

Cloud gaming, which lets people play video games through the internet without needing a console, started with big hopes about 15 years ago. Despite efforts from companies like Sony and Microsoft, game streaming remains costly and uses a lot of internet data, causing limits on playtime; Microsoft recently introduced monthly playtime limits that raise questions about the future of cloud gaming.

Key Facts

  • Cloud gaming allows players to stream games from servers over the internet to devices without powerful hardware.
  • Sony bought Gaikai, a cloud gaming service, in 2012, and its technology supports PlayStation’s game streaming today.
  • Google’s Stadia game streaming service launched in 2019 but closed after three years due to lack of user interest.
  • Microsoft and Sony include game streaming in their game subscription services (Xbox Game Pass and PlayStation Plus).
  • Microsoft now limits game streaming to 5-15 hours a month depending on subscription level.
  • Streaming games uses much more data than streaming videos, about 4GB per hour versus 1GB for video streaming.
  • Early cloud gaming struggled with input lag, making games less responsive; this has improved but data demand remains high.
  • Demand for computing power has increased due to AI services, making data centers and internet resources more expensive, which affects cloud gaming costs.
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