Crypto-based play-to-earn gaming has skyrocketed in the past few years. Moreover, cloud-based gaming has opened up the possibility of not needing high-end hardware to play AAA gaming titles. Both developments have the potential to disrupt the gaming industry, currently led by mobile devices, Microsoft’s Xbox and PC, and Sony’s PlayStation.
According to a report by Newzoo, consumers will spend up to $188 billion in 2023 on video games. About 50% will go towards mobile gaming, about 20% will go towards PC gaming, and the remaining 50% will go towards Xbox and PlayStation.
Also Read: Microsoft’s Updated Xbox Rumored to Include Crypto Wallets
Today, gamers mostly have one of two options. They can purchase a physical copy of a game or buy a subscription, like Microsoft’s Game Pass or Sony’s PS-Plus. However, this could soon change with the advent of cloud-based gaming. Cloud-based gaming uses distant servers to process the game and stream it to players. Moreover, crypto-based gaming is quickly growing in size as players are incentivized. Both developments could spell trouble for Microsoft and Sony.
To counter the threat, Microsoft CEO Satya Nadella has begun exposing the company to sectors that would be least affected by cloud gaming. This could explain the firm’s recent buying streak, from Bethesda to the ongoing Activision acquisition.
Risks to cloud and crypto-based gaming?
Gaming often requires quick responses from players, in the realm of a few milliseconds. Hence, gameplay would be severely affected if players did not have access to incredibly fast internet connections. Speeds would need to be faster than in consoles or computers, as the game would need to be processed elsewhere and not in the player’s hardware. This is probably one of the biggest barriers to cloud-based gaming.
Also Read: Global Crypto Gaming Market Expected to Grow to $206 Billion by 2025
Crypto-gaming, on the other hand, has a long way to go before offering AAA titles. So far, these games have been successful on the mobile platform. More developers will need to enter the industry and make more innovations. In September 2022, Dan Houser, the former head writer for Rockstar Games, who is behind most of the Grand Theft Auto titles, joined the advisory board of Revolving Games, a blockchain-based gaming company. Houser’s involvement in a crypto-like gaming endeavor is a testament to the growth of the industry.
Nonetheless, it still remains to be seen how the industry will unfold in the future. There were rumors that Microsoft would include a crypto wallet in the next upgraded version of its Xbox console. However, there has been no confirmation of this. If that is indeed the case, it will further push web3 gaming to new heights.