3.5 Billion ‘Gamers’ Globally by 2024, but Cloud Gaming Must Evaluate Business Models in Order to Survive

Rhea-AI Summary

The ABI Research report, commissioned by InterDigital, projects that nearly half the global population will be gamers by 2024, expanding from over 2.3 billion to 3.5 billion. The Asia-Pacific leads with 51% of gamers, while the Americas represent 20%. For cloud gaming operators to thrive, exploring diverse business models is essential, particularly subscription plans which users prefer. The report highlights emerging opportunities in integrating gaming into non-gaming activities, such as workplace tools and fitness apps, suggesting a significant growth potential for Gaming-as-a-Service (GaaS) as 5G and Wi-Fi technology advances.

Positive

• Projected growth of gamers from 2.3 billion to 3.5 billion by 2024.
• Asia-Pacific holds the largest gaming base at 51% of global gamers.
• Increased opportunities for gamification in non-gaming sectors.
• Focus on subscription models aligns with consumer preferences.
• Emerging demand for Gaming-as-a-Service (GaaS) with advancing 5G technology.

Negative

• None.

WILMINGTON, Del., July 16, 2020 (GLOBE NEWSWIRE) -- A new report from ABI Research has found almost half of the expected population in 2024 will be gamers. To take advantage of this huge market potential, telecommunications companies, internet service providers (ISPs), and original equipment manufacturers (OEMs) must evaluate different business models to determine whether the cloud gaming service will succeed or fail.

Commissioned by InterDigital, the report “Cloud gaming: Enabling a next generation gaming and streaming paradigm” states that the video gaming market is now among the largest entertainment industries in the world. Currently, more than 2.3 billion individuals play video games, and the number of gamers is expected to grow substantially over the next four years to more than 3.5 billion gamers by 2024. The Asia-Pacific region represents the largest gaming base with 51% of the worldwide total. The Americas, at roughly 20% of the player base, represent the second largest revenue opportunity.

The report suggests that for cloud gaming operators to capitalize on this growing industry, they must evaluate their business models while the market is in the early stages of its life cycle. Over-the top media services, like online video streaming, offer the most pragmatic and consumer-friendly option thanks to monthly, quarterly, or annual subscription plans. Consumers favor unlimited subscription plans over time-based payment plans, even if they end up paying more than what they would on a usage payment plan.

Subscription models are also intended to shape user behavior. A parallel can be drawn with mobile data, where caps were implemented to increase revenue, but also to dictate usage. While usage-based fees are less popular, they could prove to be the optimal strategy for market players in early cloud gaming days, especially when it might be challenging to convert the core gaming audience from gaming PCs and consoles.

Furthermore, the future of cloud gaming doesn’t lie solely in traditional video games. According to the report, there are increasing opportunities for market players to add gaming elements to non-gaming activities and content. Gamification can increase flexibility in delivery and consumption, opening new use cases and applications, such as within workplace collaboration tools and fitness applications. Augmented Reality (AR) and Virtual Reality (VR) also have inherent synergy with gaming and, more specifically, with cloud gaming.

“The cloud gaming market is rapidly growing, and it’s clear those who act now will capitalize on this opportunity. But these players need to act fast if they want to take advantage of everything this exciting market has to offer,” said Laurent Depersin, R&I Senior Lab Director at InterDigital. “As developments in 5G and Wi-Fi penetrate the mainstream, enabling more products and services to become gamified, we’ll see Gaming-as-a-Service (GaaS) really come to life—pulling in new gamers, and encouraging existing ones to make the transition to the cloud, thanks to its user friendly business model. For cloud gaming and GaaS to succeed, players need to ensure they deliver both the right business model and the right user experience to drive mainstream adoption.”

To access the full report ‘Cloud gaming: Enabling a next generation gaming and streaming paradigm’ please click here.

About InterDigital^®

InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

InterDigital Contact:
Roya Stephens
Email: Roya.Stephens@interdigital.com
+1 (858) 210-4814

FAQ

What does the ABI Research report say about the gaming market?

The report states that the gaming market is expanding rapidly, with a projection of over 3.5 billion gamers by 2024.

How does cloud gaming's success relate to business models?

Operators need to evaluate and adapt their business models, especially subscription plans, to capitalize on the growing gaming market.

What region has the largest gamer population according to the report?

The Asia-Pacific region has the largest gaming base, representing 51% of the total global gamer population.

What role does 5G play in cloud gaming's future?

5G advancements are expected to enhance the viability of Gaming-as-a-Service (GaaS) by improving user experience and attracting more gamers.

How does the report suggest integrating gaming into other activities?

It highlights opportunities for gamification in non-gaming applications, like fitness and workplace collaboration tools.