Daniel Ahmad Profile picture
26 Oct, 15 tweets, 3 min read
The Cloud Gaming 1.0 era is coming to an end and the opportunities for 2.0 and 3.0 are becoming clear.

Since the introduction of Onlive and Gaikai almost 10 years ago, cloud gaming has mostly been utilised by players that already game on platforms such as PC / Console

1/
For existing console and PC gamers, cloud gaming is not a replacement for their current devices.

Cloud is a way for them to extend their gameplay to additional devices in different environments. Providing a seamless gaming experience at all times.

2/
The top cloud gaming services for this such as PS Now and GeForce Now understand this through deep integration with existing ecosystems and libraries

Playing a game locally with friends, then being able to resume with the same save and same friends via cloud ver., is appealing
We are now entering the 2.0 era which is designed to bring existing game experiences to a wider audience on the platform of their choice.

This is being driven by the roll out of 5G in the mobile space, the extension of cloud services to multiple devices and new business models
5G can be a huge enabler for cloud gaming 2.0, removing many of the barriers to cloud gaming today. Investment in edge computing can further reduce latency in cloud games on mobile.

xCloud is a good example of how cloud gaming can enable AAA games on mobile.
The extension of cloud gaming services to multiple devices such as mobile and Smart TV's can help target lapsed gamers.

I wrote about this segment previously and how it could enable them to game again. Esp. w/ cheap TV stick / controller bundles.

The introduction of new business models such as subscriptions can help increase the reach of cloud gaming

Especially in markets where AAA gaming is expensive. Game Pass on mobile is cheaper than buying a console. A low cost cloud only tier could work in Asia for example.
However, there are many questions regarding the above-

- How can AAA games increase appeal beyond console / PC?

- How do existing and new gamers discover these cloud games / cloud game services?

- How is cloud gaming sustainable for the platform / service owner?
This is where I believe Cloud Gaming 3.0 comes in. A long term play that deeply integrates cloud across the games industry to increase the appeal, discoverability and monetisation potential of cloud games

This is essentially about creating new experiences within a cloud game SKU
We are already starting to see glimpses of this with platforms like Stadia.

The ability to instantly demo a game. Deep links embedded into ads / gaming platforms.

How about being able to instantly play a new hero before you buy them?

Instant demos via deep links is one thing. Integrated cloud game ads in an app or platform is another.

Cloud offers more than HTML5. Instantly start playing a cloud game while scrolling TikTok. Let influencers create their own cloud game ads with high scores to beat etc...
Integration between live streaming platforms and cloud games. Providing tools and experiences not possible before.

Instantly jump into a cloud game with a streamer via invite.

Let people pay to manipulate the game via chat / other tools as their favorite streamer plays.
Games on the market today can utilise the above to increase the appeal and discoverability of games + drive additional sales of in app purchases / full game purchases.

However, the real growth from 3.0 comes from games designed with cloud in mind. Cloud native experiences.
Cloud native experiences are unique, adapt to each device and utilise remote servers to create games that weren't possible before.

Whether it be sophisticated AAA games played by 1000's of players, or simpler experiences where players can engage how they want when they want.
Cloud will not just enable these new experiences and ways to play, but as above, it will help increase the appeal of these games as well as the ways the games can be distributed. That in turn can increase the overall number of players and the viability of cloud games overall.

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More from @ZhugeEX

23 Oct
Due to the complexities of covering the China games market and the history of Chinese government actions, it is easy for news stories to make the rounds using some incorrect information

The below being an example. I will explain why this viral tweet is completely incorrect-

1/
- Sony updated its ToS for all users globally recently, including those in Asia / Hong Kong.

- The screenshot above is not related to new changes. This part of the ToS has been in the Asia ToS for PlayStation devices for years.

- It is also Mainland China specific.

2/
- Therefore it cannot be in response to the new Hong Kong National Security Law, nor does it apply to Hong Kong

- The ToS image is above is just the 'Interim Administrative Provisions on Internet Culture' law which was introduced in China during 2003 for all online products

3/
Read 6 tweets
6 Oct
People have asked me why this is:

1. MiHoYo is a Mainland China based developer

2. China's laws and games regulator state that games cannot contain "Anything that threatens China's national unity"

3. All Chinese games censor phrases such as Taiwan / Hong Kong due to this
Chinese developed games have to comply with a ton of content and in game censorship rules because of these laws and regulations

There is a list of banned words that cannot be used in game / via chat functions

Foreign developers also need to comply when publishing games in China
Here is an extract from our China Regulations and Approval Process report that we released earlier this year.

nikopartners.com/niko-partners-…
Read 6 tweets
17 Sep
A quick thread on the PS5 showcase + Strategy:

- Overall a strong showing that focused on blockbuster IP playable on PS5.

- Key exclusive content from first party and select partners.

- Competitive pricing options and global roll out in November.

PlayStation have tailored their PS5 showcases around first year games for the most part since June.

All the major new games showcased, including God of War Ragnarok (PS5 Exclusive), Final Fantasy XVI (PS5 Console Exclusive) and Hogwarts Legends (Multiplat) are 2021 titles.
The emphasis, as noted in the first tweet, is very much on these blockbuster IP releasing soon and PlayStation 5 being the best place to play.

In addition to exclusive games, Sony continues to invest in exclusive content for third party games. E..g. COD Beta / GTA Online free.
Read 19 tweets
11 Sep
Apple clarifies that it will allow cloud game services on iOS if each game is individually approved by Apple

Apple still takes a 30% cut on subscriptions via iOS. But subscribing via PC/Console will allow you to access the iOS app too.

techcrunch.com/2020/09/11/app…
The huge caveat here is that Apple requires each game to have an individual listing and can be purchased or downloaded separately from the subscription service. This could also be a demo version of the game.

One step forward, two steps back imo.
So yes, this is somewhat good news for xCloud, Stadia and other cloud gaming services.

But it's also going to be complicated to implement and may not be something that a cloud game service provider wants to offer in the first place.

Will be interesting to see responses.
Read 8 tweets
5 Sep
Tencent and Tim Hortons will create esports themed coffee shops, including esports themed beverages, food and in store activities

- Tim Hortons opened its first coffee shop in China last year. Plan to open 1,500

- Tencent invested an undisclosed amount in the company this May
- The traditional Internet Cafe business model needs innovation and offline mobile gaming / esports cafe's is one avenue being explored.

- Customised spaces:

Fast Wi-fi, Gaming chairs, fast charging ports etc...

Traditional food and drink experience

In store events
- Coffee shops can become the third place for gamers and esports fans in the offline world.

- Backing from Tencent will allow for a broad range of content / initiatives in store.

- Drive customer loyalty through experience
Read 4 tweets
28 Aug
Chinese games company iDreamsky is creating new offline entertainment / gaming experiences with investment partners including Tencent, Sony & JD

Best described as the next generation of Internet Cafes, these retail stores offer compelling entertainment experiences

Quick thread
iDreamsky is working with its investors to design a new innovative offline interactive entertainment service model that grows the value of entertainment and games IP.

The store aims to offer content across TV, Movies, Games & esports paired with e-commerce and catering.
The store offers both private and large scale spaces to experience various content.

For example you have the ability to watch on demand movie content in private rooms, or arrange a traditional theatre experience for 20+ people. Includes movies not out on VOD yet. Also KTV rooms
Read 10 tweets

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