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Netflix slides into the cloud gaming market
by cityam
JESS JONES
NETFLIX has this week made its first major move into the cloud gaming industry, with the streaming giant beginning the rollout of new games to subscribers in the UK and Canada.
Cloud gaming – sometimes known as gaming on demand or game streaming – allows users to play video games remotely using just a wifi connection. It removes the need for expensive hardware, as the game processing is done via a super computer elsewhere.
“Netflix Games is more than a trial –it’s on track to become a major games platform,” wrote a report published in February by leading media research firm Enders Analysis.
Gareth Sutcliffe, senior games analyst at Enders, explained to City A.M. that Netflix’s foray into game streaming is “a natural progression for them”.
“They need to address the TV audience and they intend to do that without requiring an expensive console which is an enormous barrier to entry for many.”
The streamer is rolling out two games to a “small number” of subscribers in the UK and Canada, according to an announcement made on Monday by Mike demand more”.
Verdu, a vice president at Netflix.
As of yesterday, users can play the games on televisions, using their phone as a controller, with the games running on PCs and Macs soon.
“This limited beta is meant to test our game streaming technology and controller, and to improve the member experience over time,” said Verdu. Sutcliffe pointed out cloud gaming relies on a strong network connection and Netflix “will have to work more closely with all providers in the value chain to avoid latency, buffering and deliver the best games experience at scale”.
With Microsoft’s potential acquisition of Activision Blizzard driving the gaming sector towards subscription services, Netflix is in a great position to leverage the subscribers it already has and attract external game developers.
Although Microsoft is looking to gobble up gaming giant Activision Blizzard, it has to get past the UK’s competition watchdog first who worry the acquisition could give Microsoft an unfair advantage in cloud gaming.
The rapidly growing cloud gaming sector is forecast to be worth up to $13.6bn (£10.7bn) globally.
The two companies are no strangers, having worked together since February 2020. Since then, Infosys has developed and supported Horizon, transitioning it to a cloud-based platform.
Salil Parekh, chief executive and managing director of Infosys, said it is a “new chapter” for Infosys and Liberty Global.
If the companies choose to extend the deal for another three years, it could be worth up to €2.3bn.
