Cloud gaming will generate $585 million in 2020

Expected to rise to $4.8 billion by 2023

Cloud gaming will generate $585 million in 2020

The cloud gaming sector is expected to generate $585 million in revenue this year, according to a new report from Newzoo.

It represents an impressive leap from last year's earnings when cloud gaming generated $170 million. Furthermore, by 2023, the market is expected to make around $4.8 billion in revenue, with growth expected to continue over the following years. Naturally, the COVID-19 pandemic has aided in the evolution of cloud gaming as many turned to games as a means of staying entertained during lockdown.

In recent years, cloud gaming has been on the rise as companies begin to recognise the opportunity it provides. In 2019, Google got in on the action with the launch of Stadia, although the execution of the streaming platform has been questioned since its November release, given it was missing a variety of promised features.

In the clouds

However, Microsoft has seen great success with Project xCloud during its trial period on Android devices. The big M's service will be released for all Xbox Game Pass Ultimate members later this month, giving mobile users access to more than 100 games.

Perhaps the most exciting thing about cloud gaming is the various platforms that are already available, each with its own strengths.

"There are certainly differences between platforms, with some standing out for better latency, while others stand out for better visuals. No one platform rules them all," said B2B performance analysis firm GameBench.

Startup Dixper added: "not every game is suitable for Crowdplay [a service where players could self-stream games and play with other people]. We can see it growing in a future where new games with local/cloud cooperative features are developed with this use case at their core."

Staff Writer

Kayleigh is the Staff Writer for Besides PGbiz and PCGI she has written as a list writer for Game Rant, rambling about any and all things games related. You can also find her on Twitter talking utter nonsense.