Future of Home Consoles Debated as Cloud Gaming Market Grows
According to a Bloomberg Intelligence report, cloud-based gaming, expected to reach a multibillion-dollar volume by 2035, could shrink the market for traditional devices.
A new study published by Bloomberg Intelligence predicts that the cloud gaming market could reach $38 billion by 2035, potentially relegating dedicated home consoles to a niche status.
Cloud Gaming Market and 2035 Targets
Research led by Bloomberg Intelligence analyst Nathan Naidu reveals that streaming games will capture a major market share in the future.
The realization of this transformation depends on excess GPU capacity driving down processor prices toward the end of the decade.
Artificial Intelligence and Computing Costs
Artificial intelligence technologies play a dual role in reducing costs and supporting data centers.
However, while current AI demand continues to push processor prices upward, memory shortages are not expected to ease before 2028.
Positions of Major Industry Players
Microsoft holds approximately 40% of the cloud streaming market with Xbox Cloud Gaming, while Nvidia stands out in the competition with GeForce Now.
Tencent leads the Chinese market, whereas Nintendo is considered to be in the most disadvantaged position as it keeps cloud technology in the background.
Future Plans and Developer Trends
While Microsoft is planning a next-generation console for 2027, Epic Games CEO Tim Sweeney stated that they are focusing on Unreal Engine 6 integration.
A survey showed that 52% of developers believe generative AI harms the industry.