Microsoft recently announced it will begin testing its game streaming service, xCloud, from October onward within the US, UK and South Korea (Nu.nl, 2019). This service will enable users to stream videogames directly to their device of choice. With Google Stadia launching this November and Sony’s PlayStation Now already active, this will be the third big player introducing a gamestreamingservice to the world. This poses the following interesting question: Will game streaming services take on the same role within the gaming industry that video streaming services, like Netflix, have taken on within the movie industry?
PlayStation Now was launched in 2014 and since then has grown rapidly. There has been an increase in user of around 40% yearly (Strickland, 2019), which is comparable to Netflix’ growth in users from Q4 2011 to Q4 2012 (around 41%). Since then however, Netflix has increased in user numbers with around 30% on average yearly (Nu.nl, 2017). While it is a promising sign that the growth ratio matches that of Netflix, total user numbers should also be taken into account. Four years after Netflix started its streaming platform their user base consisted of about 50 million people (Nu.nl, 2017). PlayStation Now, as of April 2019, user base consists of only 700.000 users. These users represent less than 1% of PlayStation’s current install base (Strickland, 2019).
In conclusion, while the growth ratio of the user base of Sony’s game streaming service matches and exceeds that of Netflix in its early stages, there is still a long way to go for game streaming services as a whole. Their market position at the moment is not comparable to video streaming services. However, the potential is definitely there.
Gurwin, G. (2019). Microsoft xCloud: Everything we know about the streaming service. Retrieved on 5 October 2019, from https://www.digitaltrends.com/gaming/microsoft-xcloud-price-beta-release-date/
Nu.nl. (2017). Groei aantal Netflix-abonnees hoger dan verwacht. Retrieved on 5 October 2019, from https://www.nu.nl/internet/4400313/groei-aantal-netflix-abonnees-hoger-dan-verwacht.html
Nu.nl. (2019). Microsoft test gamestreamingdienst xCloud vanaf oktober in VS en VK. Retrieved on: 5 October 2019, from https://www.nu.nl/games/5997967/microsoft-test-gamestreamingdienst-xcloud-vanaf-oktober-in-vs-en-vk.html
Strickland, D. (2019). PS Now has 700,000 users, still leads online game streaming. Retrieved on 5 October 2019, from https://www.tweaktown.com/news/65717/ps-now-700-000-users-still-leads-online-game-streaming/index.html
Hi Ricardo,
I agree with you that game streaming service has great potential. However, is it already accessible to many people?
For example, do you need fiberglass and extremely fast internet connection to be able to play games while streaming them? I can imagine that streaming costs a lot of MBs and you don’t want to have any lag in the games you play. It might cost you your win.
This can also be an explanation of the relatively low number of the user base of Playstation Now.
Kind regards,
Sander