How Cloud Gaming is Transforming the Gaming Industry

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How Cloud Gaming is Transforming the Gaming Industry

Cloud Gaming Is Expanding How Players Access PC Gaming 

For many years, the world of PC gaming operated on a simple basis: buy a powerful computer, install the games and then upgrade the hardware when necessary. This model isn’t necessarily disappearing; it’s just no longer the only means of experiencing high-end PC gaming. Cloud gaming alters the way in which players, games and hardware are related. Rather than rendering everything on the local machine, the games are run on powerful hardware located in data centres and are then streamed to compatible PCs, laptops, televisions, handheld devices and other technology. The importance extends beyond convenience since it questions a basic assumption that your gaming performance must depend on the hardware you own.

Your PC Is No Longer the Limit 

Building a powerful gaming computer is still a passion of PC enthusiasts, but not everybody wants to spend thousands of dollars on a gaming system in order to play the newest games. Pentanet surveyed members of their Australian GeForce NOW service, GeForce NOW Powered by CloudGG, and found that 56% of them have a gaming PC or laptop. This contradicts the notion that cloud gaming is mainly aimed at people who do not have gaming hardware. It can be used with the equipment currently in use. For example, a person might use a powerful desktop computer at home, a laptop when travelling, while reserving a television for gaming in the living room. The question and focus changes from what can my device run? to where do I want to play?

Gaming Is Becoming Device-Diverse 

The rise of cloud gaming is accelerating the move towards experiences that follow players across devices, regardless of the device they are using.

In the past five years, NVIDIA GeForce NOW has gone beyond normal personal computers to include platforms such as the Apple Vision Pro, Meta Quest, Amazon Fire TV, Samsung Smart TVs, LG Smart TVs, Steam Deck, Linux and Firefox. Nowadays, a TV doesn’t need to have a dedicated gaming PC connected to it. A laptop doesn’t have to use a high-end GPU, while a handheld device can make use of more powerful computing resources over Wi-Fi. The device acts as a window onto the game, not as the machine that carries out all the processing.

Local Hardware and Cloud Can Coexist 

Cloud gaming can succeed without replacing traditional gaming PCs. Enthusiasts will keep building powerful machines. Consoles, handhelds and dedicated gaming devices will continue to maintain their spot. Cloud gives users another option.

“Cloud gaming should not be judged against an expectation that it would replace traditional gaming hardware. Its role today is much broader and, in many ways, more complementary to the existing gaming ecosystem.”– Stephen Cornish, Founder and Managing Director, Pentanet.

In Pentanet’s research, 41.4% of members surveyed said GeForce NOW is their main way to game. This is despite the fact that 56% of them own a gaming PC or laptop. This shows gaming platforms are getting broader. Players can choose local hardware when they prefer it, and cloud gaming when convenience or flexibility matters more.

Changing the Economics of Access

High-end PC gaming can require a significant upfront hardware investment. Thankfully, cloud gaming gives players another way to access graphics-intensive games without relying on a powerful local machine. Pentanet’s survey further showed that 47.4% like playing PC games without a gaming PC and 44.3% want to play on other devices. This doesn’t mean gaming hardware isn’t valuable, as this is just another way to get the computing power you need for demanding games.

“That increased access is ultimately positive for the wider games industry. If cloud gaming enables more people to play, it creates a larger potential audience for developers and publishers and gives existing players more opportunities to engage with games. Rather than taking something away from traditional gaming, it can help grow and uplift the industry as a whole.”– Stephen Cornish, Founder and Managing Director, Pentanet.

Gaming Libraries Are Becoming More Portable

Gaming has evolved as consumers are mostly digital now, with libraries, subscriptions and accounts. GeForce NOW lets players connect supported stores to stream games they own, as well as supported titles available through PC Game Pass. Consumers expect games and subscriptions to be portable, not tied to a physical computer or console, which cloud gaming supports.

Technology Must Deliver the Experience

Cloud gaming has made significant progress since it started. At launch in Australia, GeForce NOW could only stream in HD 1080p, but now 4K resolution at 120 frames per second is possible with more powerful NVIDIA hardware with GeForce RTX-4080 powered cloud gaming rigs. The experience has also been enhanced with NVIDIA Reflex, variable refresh rates (VRR), higher streaming bit rates and ultrawide monitor support. Moreover, the game catalogue has only become larger, from around 1000 titles at the Australian launch to more than 2100. Gamers don’t care how complex the tech is if it’s slow or doesn’t respond. The experience needs to be smooth.

“The technology itself has already come a long way. When much of the early hype around cloud gaming emerged, the experience was far more limited. Today, NVIDIA and its GeForce NOW Alliance Partners are leading that evolution, with GeForce NOW capable of delivering significantly higher resolutions, frame rates and overall quality than was possible in the early days of cloud gaming.”– Stephen Cornish, Founder and Managing Director, Pentanet.

Connectivity Remains Fundamental

Cloud gaming doesn’t make networks less important, it actually makes them more important. Pentanet’s frustration with Australian internet connectivity helped lead to the creation of a telco business and eventually, the opportunity to bring GeForce NOW to Australia. Every player interaction depends on the connection between the device and the remote hardware. Broadband, mobile networks, Wi-Fi and data centre infrastructure all influence the experience. Cloud gaming is therefore part of a much larger technology story in Australia.

“Reflecting on five years ofGeForce NOW Powered by CloudGG, Pentanet’s Founder and Managing Director, Stephen Cornish, says the journey has involved overcoming challenges while building a new kind of gaming experience for Australian players.”

“It’s a real milestone, and I think there’s a huge sense of pride across the whole team. When we started this journey five years ago, we knew we were working with some pretty special technology, but there were plenty of unknowns we had to work through along the way. We were building something that hadn’t really been done here before, figuring out the technical and operational challenges as we went, and learning what it would take to deliver a great cloud gaming experience to Australian players.”– Stephen Cornish, Founder and Managing Director, Pentanet.

Perceptions Are Changing

Gamers are a demanding group as they notice latency, responsiveness and compression, which makes early scepticism about cloud gaming understandable. Experience can also change perceptions. For example, Pentanet discovered in their GeForce NOW Powered by CloudGG member survey that 91% believed cloud gaming would continue to grow in relevance and 41% even described it as the future of gaming. While these results are from surveyed members, and not the entire gaming population, they still suggest that a convincing experience can change attitudes.

The Future Is Enabling Choice

Cloud gaming’s most significant contribution may be the flexibility it introduces to the overall experience. That same player can own a gaming PC, television, handheld device and laptop, using each in different circumstances. Cloud gaming connects these environments together. That future doesn’t have to be a choice between local hardware and the cloud, as both can coexist since players decide where and how to play.

Cloud gaming is expanding the industry’s focus beyond what a single device can run to the gaming experience players can access across devices. That changes the question from whether a device can run a game to something simpler:

Where do you want to play today?