Emerging technologies such as cloud gaming and artificial intelligence may transform the video game industry. These innovations could replace home consoles altogether, since many gamers prefer to play online.
AI and Data Centers to Drive Cloud Gaming Growth
According to Bloomberg Intelligence, the global game-streaming industry is estimated to be worth USD 38 billion by 2035. The report highlighted that artificial intelligence could play a dual role by reducing operational costs and helping set up the infrastructure needed to deliver games online.
Users won't need to buy expensive consoles or upgrade hardware repeatedly, as they can play games through streaming on suitable devices.
Bloomberg Intelligence forecasts that advertising will become a major growth driver for the gaming industry in the coming decade.
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Dedicated Consoles Face Changing Market
The expected growth in the game streaming sector raises questions about the future of existing consoles like PlayStation and Xbox.
It works by running games remotely on servers and streaming them to the user's device through an internet connection. This allows people to game on various devices like smartphones and computers, which are also compatible with cloud gaming services.
Nonetheless, these changes will require further improvements in cloud services and internet infrastructure for smoother game streaming.
Gaming Industry Prepares for New Phase
The projected expansion of cloud gaming could also reshape industry competition. Companies investing in AI infrastructure and streaming technology may gain new opportunities as gaming becomes less dependent on physical hardware.
For established console makers, the transition could require business model changes as players gain more ways to access games.
While Bloomberg Intelligence's forecast points to a potential decline in consoles as a mass-market product, it does not establish that dedicated gaming devices will disappear entirely. The industry’s direction will depend on how quickly streaming technology advances and how readily players adopt new ways to play.