Cloud gaming is one trend in the spotlight of this year's Gamescom, the world's top games trade show. Google's new platform, Stadia, could completely change the industry. Here's what cloud gaming is all about.
Image: Getty Images/L. Schulze
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Cloud gaming is easy to explain. Instead of storing a game on a disk or a hard disk, it is located in a computer center — the so-called cloud — and can be streamed via the internet from any location and to any end device. Players no longer need an upgraded PC, but only a stable internet connection.
Gamescom: Gaming giants too must adapt or die
The world's largest computer games trade show is drawing huge crowds in Cologne. Trends, including streaming and immersive technologies, are disrupting the market, possibly spelling the end for the games console.
Image: Getty Images/L. Schulze
Long queues for a sneak peak
Hundreds of thousands of gamers have descended on Cologne again for Gamescom. The eager ones were queuing up to a day ahead of the opening on Wednesday. Last year about 370,000 people visited the trendy trade show and organizers expect a record number of visitors this year. With 1,150 exhibitors from more than 50 countries, fans can get a sneak peak at the latest games offerings.
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Half of Germany has sore thumbs
One out of two Germans play games on mobile phone, consoles or PCs, according to Games, the German games industry association. The growth of the sector has been remarkable: in the first half of 2019, sales in Germany rose by 11% to €2.8 billion ($3.1 billion). Only about 4% of that revenue, however, came from games developed at home.
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Innovation boost
Politicians, including Minister of Transport and Digital Affairs Andreas Scheuer, have promised to boost German game production. The Cologne trade fair after all showcases "tomorrow's innovations," he said. In 2019, game developers received €50 million in state funding, and Scheuer has said he plans to make sure the financial support continues.
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Highly-anticipated space shooter teased
"Everspace 2" was given a sneak preview at Gamescom, although fans will hate to wait until 2021 for its full release. A trailer for the openworld space combat game went down a storm as well as teasers for the interactive thriller "Erica" from Sony and the upcoming releases of "Gears 5" and "Borderlands 3."
Cloud gaming is a major topic at this year's Gamescom. Microsoft presented its Project xCloud which unlocks device restrictions on games. Other big players like Google want to stream the best-known games. In future, even the most elaborately-designed games may no longer need expensive hardware. In Germany, however, the lack of fast internet in some areas will be a major sticking point.
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Are gaming consoles dead?
Nintendo's Wii revolutionalized gaming when it was released in 2006 around fitness and interactivity. A new generation of consoles are set to be previewed at Gamescom including Sony's PlayStation 5 and the new Microsoft Xbox (Scarlett). Both consoles are due for release next year. Industry observers suspect the age of the console is coming to an end, but the big manufacturers are still bullish.
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Immersion tools are all the rage
The rise of smartphone gaming hasn't hurt the market for computers and monitors. Outside of North America, sales of gaming hardware grew 15% worldwide in the first half of 2019 compared to last year, according to the market research firm GfK. Curved monitors are the current must-have gadget for any serious gamer, as they help users to fully immerse themselves in the action.
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Digital sports taken seriously
Germany's Olympic Sports Confederation has yet to recognize digital competitions as sports. But that hasn't harmed their protests. In Germany, e-sports grew revenues by 22% to €62.5 million last year, according to the consulting firm PwC. Another key source of income is sponsorship. Germany ranks fourth worldwide behind the USA, South Korea and China with its promotional earnings.
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No Gamescom without dressing up
Cosplay (Costume Play) is of course a completely analogue hobby but nevertheless indispensable at every Gamescom. As in previous years, contests will be held for the best costumes. One popular trend from Japan is to try to emulate a character from a manga (comic), film or video game as true to the original as possible.
Image: Getty Images/L. Schulze
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Cloud gaming has been around for 10 years, but so far, it hasn't really caught on yet. That may be about to change this year, thanks to new cloud gaming services like Google Stadia. Stadia promises users they can play games provided on any screen, be it smartphones, computers, televisions or tablets. All users need is Google's Chrome browser and an internet connection. Google provides the necessary controller. In November, the product will be available in the USA, Canada and several European countries.
The advantage of this kind of "Netflix for games" is that it reaches user groups who may be interested in digital games, but never had access to current productions without a console or high-end PC.
Beyond the fact that it is a profitable and expanding market — which is why industry giants such as Sony and Microsoft also have their own cloud gaming services — it could also improve the image of video games and gamers alike. While binge-watching TV series has become socially acceptable, adults who spend a lot of time playing video games are still sen as oddballs, at least in Germany.
No internet? Tough luck!
Cloud gaming has one big disadvantage, though: It only works with a stable internet connection. Delays in the transmission of digital games quickly lead to screen death. In contrast to film streaming, where parts of the film can be loaded in advance, video games are an interactive medium and scenes can not be loaded in advance. After all, the player decides what happens next. The gaming platforms need to get creative to get a game to run smoothly even with a weak internet connection. For instance, PlayGiga, a Spanish cloud gaming provider, shuts down the graphics in such cases.
Family games for the mass market
All the same, cloud gaming is the next big change in the gaming industry and will have a significant impact on digital games. Casual games like Candy Crush Saga are already a big hit: They are easy to learn and have long since conquered smartphones. Family games that couples, too, can easily play from their couch at home also do well, according to Juan Carrillo, product director of PlayGiga.
"Candy Crush Saga" appeals to people who probably don't define themselves as gamersImage: Reuters/C. Allegri
It will become increasingly important for developers to customize their games for different platforms because cloud gaming allows for seamless switching between TV, tablet, smartphone and PC. They will also need to address shorter user attention spans for any one given game — after all, a large library of games will tempt people to try out many of them instead of spending hundreds of hours on one title.
In the long run, cloud gaming providers may very well end up developing games, too. Based on usage data, streaming services know exactly what their subscribers want. Netflix has already led the way with its own productions in the film and series sector.
With so many providers currently on the market, they will also need to offer added value to their users, because it is unlikely that they will subscribe to several cloud gaming providers at once. After all, many people already juggle subscriptions to more than one streaming service for movies, series, music or sports coverage.
