Newzoo released its 2022 Global Cloud Gaming report. The company opens up by sharing a methodology and a cloud gaming ecosystem diagram before moving on to key developments in cloud gaming.
The company stated that Google’s recent decision to shut down Stadia after three years will not prevent cloud gaming from having a bright future. Newzoo shared three possible scenarios for the cloud game industry’s forecast:
- Base scenario, which is the most probable based on current events.
- Optimistic scenario, which shows what can happen without any setbacks.
- Pessimistic scenario, in which the market would try to fix issues instead of growing.
The Serviceable Obtainable Market (SOM) numbers are expected to grow from 160.2 million in 2021 to 464.9 million in 2025. Newzoo also forecasts 31.7 million paying users of cloud gaming services by the end of 2022, with $2.4 billion spent. These numbers are predicted to go up to 86.9 million gamers spending a total of $8.2 billion.
According to the report, the Asia-Pacific region (36.5%) takes the lead in revenue forecast for 2022, with Europe in second (30.3%) and North America (27.1%) in third place. The revenue forecast for 2022 is close to $2.4 billion, while the expected revenue for 2025 is $8.2 billion, almost three and a half times that of 2022.
Additionally, prominent entertainment and media companies such as Netflix may eventually enter the cloud games market, the company predicts. Newzoo’s Cloud Gaming Lead, Guilherme Fernandes, used these remarks in the foreword section of the report:
“Cloud gaming is maturing. Service providers are innovating across monetization and use cases, attracting more users and attention than ever before to the power of the cloud. At the same time, some of the biggest players in traditional gaming, like Xbox and PlayStation, are supplementing their core hardware experiences via cloud gaming. Playing games via the cloud is becoming inevitable, and cloud-enabled games from some of the biggest names are on track to win over even the staunchest hardware enthusiasts. Beyond hardware, cloud gaming skeptics in the business and consumer world alike are beginning to embrace the value proposition and future promise of cloud gaming.”
The report contains more valuable information in detail, along with a stakeholder spotlight section that includes interviews with companies such as Xbox, YuanJing, Well-Link, Hadean, and Radian Ark. You can find the free version of the report here.