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Five ways cloud gaming can help your game

October 31, 2024
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The gaming industry is often on the cutting edge of innovation, pushing forward new technologies and business models that benefit both game developers and publishers and players. Increasingly, cloud gaming is emerging as a way to address some of the major challenges faced by both. For developers/publishers, cloud gaming can solve user acquisition, retention, and distribution. For players, cloud gaming is a cost-effective and easily accessible way to play games from a browser anytime, anywhere, without worrying about downloads. Cloud gaming allows players to play games remotely from any internet-connected device and has grown in popularity as internet connectivity worldwide has improved. Given cloud gaming’s ability to deliver users high-quality PC and mobile gaming experiences from any device, more and more studios are exploring ways to use cloud gaming cloud to compete for the projected 493 million players expected to enter the cloud gaming market by 2027. If you're wondering how cloud gaming can grow your gaming business, it's important to understand the five most common use cases for video game companies. In this article, we'll look at the current cloud gaming landscape and the cloud gaming use cases that can provide your company with the boost it needs.

Cloud gaming in 2024

Let's first look at the numbers to get a complete picture of the global cloud gaming market. Statista reports that global cloud gaming revenue is projected to reach $6.91 billion worldwide in 2024, with a compound annual growth rate of 39.38%, and reach $18.71 billion in revenue by 2027. The average revenue per user and user rate penetration is also expected to climb between 2024 and 2027, from $17.46 to $37.95 and 5.1% to 6.2%, respectively. The table below details regional statistics and includes revenue projections through 2028 for a more granular look. xsolla-blog-five-ways-cloud-gaming-featured-image-01-2112x1146.webp With many video game companies believing cloud gaming is the new foundation for the future of gaming, several platform providers have responded to the call to provide cloud gaming services over the years, including major players like Microsoft (Xbox Game Pass), Sony (PlayStation Plus), Nvidia (GeForce Now), Amazon (Amazon Luna), and Google (which shuttered its Stadia services in late 2023). Although user penetration is still low, more players are becoming aware of the benefits of cloud gaming, including the cost savings of not needing to buy expensive hardware and the convenience it offers to play games anywhere on any internet-connected device.

The power of cloud gaming

While cloud gaming certainly benefits players, it can be just as beneficial (if not more so) for developers and publishers. Whether you are an indie, mid-sized studio, or enterprise-level company, cloud gaming offers the ability to launch games that reach more players worldwide and drive better results for your business. Specifically, cloud gaming can be used to increase game accessibility, drive player acquisition, strengthen user retention, improve pre-release security, and grow new revenue streams.
  1. Game accessibility: Since players can play cloud games without needing to buy expensive hardware, cloud gaming opens up exciting opportunities for companies to distribute their games globally and attract new players previously limited by hardware or budget constraints. Additionally, PC games that may have once required an expensive gaming rig can now be enjoyed by anyone on any device, allowing studios to expand their audience in the traditional top markets while also exploring emerging ones.
  2. Player acquisition: There is a clear use case for cloud gaming for player acquisition, as cloud gaming helps to remove the initial download barrier facing new players and allows them to jump right into gameplay with just the click of a link. Developers can make their entire game playable on the cloud and offer users free playtime or alternatively just launch a cloud demo. By using cloud gaming links on the back of paid marketing or influencer marketing campaigns, companies can go beyond just a video trailer and give players the real experience of playing their game before they decide to buy/download it.
  3. Retention: For games with an existing community, there's also an opportunity to use cloud gaming to deepen your relationship with players. Since there is no downloading of game files associated with cloud games, developers can safely share early versions of games or pre-release content with their community via cloud links to gather feedback and involve them in game development. Offering these sorts of benefits as community rewards can increase your players' investment in the development of your game, foster a deeper sense of player community, and help to increase retention rates and playtime.
  4. Pre-release security: Cloud gaming offers a secure and efficient means for pre-release testing of games. By utilizing cloud-based platforms, game companies can safely share early game versions with testers, journalists, and event attendees without the risk of unauthorized downloads. This approach enables scalable and affordable playtesting while safeguarding intellectual property.
  5. New revenue: Cloud gaming has the ability to grow revenue for game companies in two ways: (1) by generating an entirely new revenue stream from players playing on the cloud and (2) by growing game sales revenue as new cloud players convert and purchase your game. Launching a cloud game should be complementary rather than a threat to your game sales revenue. As a developer, you should build a monetization strategy for players who prefer to play on the cloud while having an acquisition strategy to convert those same players to purchase your game. The reduced barriers for players that cloud gaming brings make it easier for more players to discover your games and grow your revenue.
Given its diverse range of benefits, cloud gaming presents a powerful tool for game developers and publishers to expand their reach, enhance player experiences, and drive business growth. Ultimately, the value-add for the outlined use case is customizable to each game's unique needs, goals, and target audience.

Take your game to the cloud with Xsolla Cloud Gaming

With over 50 live cloud games launched, Xsolla Cloud Gaming allows developers and publishers to deliver high-quality PC and mobile gaming experiences to players remotely from the cloud in a browser, using a pay-as-you-go monetization model and cloud vendor aggregation. Our white-label solution delivers on all five previously mentioned use cases and more. But what sets us apart?
  • Launch your cloud game using an existing build of your game, with no additional dev work needed.
  • Add a "Play Now" button to your website, or we can create a site for you to build a direct-to-consumer (D2C) relationship with your audience.
  • Serve players in 19+ regions with customized pricing.
  • Players use a Pay-As-You-Go payment model and pay for the time spent in your game using virtual currency, providing an alternative to the subscription model. We are also open to other payment models.
  • As your Merchant of Record, we handle cloud game uploads, service management, and taxes.
  • With our transparent revenue formula, know upfront what Xsolla's cloud gaming services cost as you self-onboard through our Publisher Account.
xsolla-blog-five-ways-cloud-gaming-featured-image-02-2112x1146.webp With Xsolla Cloud Gaming, you can give the gift of your game to players worldwide. If your company is ready to expand its audience and improve retention, schedule a meeting with an Xsolla expert or create a Publisher Account to get started.
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