subject: Gaming In The Cloud [print this page] With the cloud computing market estimated to be worth $241 billion by 2020 its no doubt that its huge business. What used to be mainly a Business to business service is now being used by consumers on a day to day basis regardless of whether its for storing data or consuming entertainment. Spotify & Dropbox are classic examples of cloud services that are really well-liked with consumers.
1 industry where the cloud is also major is video games specifically ones created for a android phone or tablet. No one can doubt the success of Angry Birds which has now passed one billion downloads.
Despite this & the obvious worth in cloud based games it was announced that On Live, an on demand video games service was snapped up by a venture capital group for only $4.8mn. Analysts had earlier stated that the business could be worth as much as $1.8bn.
According to analysts if the deal hadn't taken place OnLive would've struggled to maintain & market their patents & Intelectual property reducing their bargaining strength significantly. Investors in the organization are thought to have lost millions as they were informed they would only be compensated if any money was left over once debts had been paid. A few of the investors include BT, HTC & AT&T.
On live utilises the cloud to let members play premium video games over the web without the use of a console. Users can even play games on their tablet, smartphone or tv. OnLive and similar services are believed by some to be the future of the video games industry and it's simple to see why with OnLive having over 1.5mn active users.
The announcement comes after a big year for the cloud gaming industry which saw OnLive rival, Gaikal snapped up by Sony for $380mn. With Sony currently designing the Playstation 4 its expected Gaikals technology will be used.
With Sony obviously making a move into the cloud gaming industry its interesting to see whether Microsoft and Nintendo will make a similar move. Both firms depend quite heavily on the cloud providing services such as Netflix and BBC iPlayer through their consoles.
If they dont Sony could see themselves standout in the console industry especially offering users the ability to play games with out their console. Only time will tell how the market will alter but one thing is certain, the clouds wont be clearing anytime shortly.
