100 Billion Cloud Gaming Industry Waiting For Activation

With the landing of 5G and the restart of the home page, the game industry began to pick up in 2019, and the overall growth rate of revenue rose again, earning more than 310 billion yuan. At the same time, Tencent, Sheng Chi, NetEase and other game giants have collectively entered the cloud game area to get new increments. But the market may be far from being activated.

"Cloud games will not only change the ecology of the interactive entertainment industry, but will also win more new users because of the new user experience. While reducing the threshold of games, we hope to rewrite the distribution mode of traditional games. In the next 5 years, the entire industry will enjoy more than 600 million scale user dividends. A few days ago, Sheng Yanwen, CEO, told the twenty-first Century economic report and other media that the cloud game has become the largest outlet for the industry, and is expected to pry the 100 billion market.

On the same day, the cooperation between Sheng Yi game and China Mobile Mickey mutual entertainment reached the first cloud game studio in China. It will cooperate in 5G cloud game development, operation, cloud game ecological construction, aiming at the development of primary cloud games.

With the entry of Google and Microsoft, cloud gaming has become a new outlet for 5G applications. NetEase also launched cloud gaming platform at the end of last year. In January 2nd, China's game industry report released in 2019 by the China Association for the coordination of sound and numbers announced that the number of games in China has reached 640 million, and has become saturated.

Under this background, only stable operation can maintain the current users. For the game industry, cloud games may be a new opportunity. However, in terms of security, equity and payment, cloud games still need time to wait for perfection.

New evolution direction

It is understood that Sheng fun game has completed a variety of terminal cloud game development and internal testing. Up to now, more than 10 years of the company's 13 games have launched the cloud program.

In the view of Wang Ji, chairman of century Huatong CEO and Sheng Xi game, the cloud game will bring about two changes to the existing game industry, namely, the transformation of the industrial chain and the emergence of new content forms. "At present, China's capital market, the online games industry is at the lowest level of historical valuation."

After lowering the threshold, the size of cloud game players is expected to exceed 600 million in the next 5 years. At the same time, new content forms such as VR/AR and immersive interactive games will emerge, and a large number of companies with large research and development experience will benefit from it and the value will also rise.

In fact, with the full maturity of 5G related technologies, the new industry chain that cloud games have spawned will accelerate the transformation and upgrading of game enterprises in many ways, and promote the whole game industry to a new level. In November 19th last year, Google announced that its cloud gaming service platform was formally launched and sounded the clarion call for foreign cloud gaming platforms.

"At the end of 2018, I went to the annual meeting of China game industry. I was the only guest speaker who wanted to make a cloud game. When I went back last month, only one of the ten speakers did not mention cloud games. This shows that everyone has reached a consensus. " Feng Lin, director of 5G cloud game industry alliance and CEO, said that from the industry perspective, cloud games have been recognized as the next generation game evolution direction.

In June 25th last year, MI Gu mutual entertainment officially launched the cloud game platform "megu fast Tour". Up to now, the product ecology of mobile phone terminal, TV terminal, PC terminal and VR terminal has been achieved, and the user scale has exceeded 20 million. It has become the first cloud gaming platform in China. Four.

In Feng Lin's view, the transformation of Xiang Yun's game must be an end product with IP effect and lasting influence. They have user base and can reduce the threshold through the form of cloud games. In the era of 5G, cloud games will be the biggest application scenario.

According to the Ministry of industry data, 126 thousand 5G base stations have been opened in 2019, and 5G has been commercially available in 52 cities. By 2020, China will deploy more than 400 thousand 5G base stations. In addition, the game industry is also getting warmer. Gamma data show that the actual sales revenue of China's gaming market in 2019 was 233 billion 20 million yuan, the growth rate was 8.7%, an increase of 3.4 percentage points compared with the growth rate in 2018, and the growth rate has picked up. And cloud games are still in the early layout.

Scale determines cost

On the whole, the game company with high quality content development has become the biggest winner. Cloud games not only allow players to get rid of the bondage of hardware, but also greatly reduce the entry threshold of users and activate the flow of users. Wang Ji pointed out that based on the multi screen experience, the development of "original cloud Games" which can take into account various modes of operation such as touch-screen, keyboard, mouse, rocker and so on will be the final destination of future game development.

More importantly, cloud games can save the development cost of game companies. "The problem of traditional hand travel is that different development needs to be done for different devices. The material on PC can not be used on mobile phones. Android's code Apple system is also useless. If you want to launch a full platform national game, the development cost is very expensive. It often takes three to four teams to repeat the development of a game to solve this problem. The original Shanda Innovation Institute cloud game project leader, Hangzhou five dimensional finance CTO Jin Yin accepted the twenty-first Century economic report reporter's interview that, now whether in the 5G bandwidth or external environment, all have the development condition.

Last June, Shun network technology also released cloud computing and cloud game solutions. According to the introduction, with the help of the small terminal equipment, "Shun net cloud box", the cloud network can make users calculate the computing power of the cloud computing pool according to their needs, and get the same experience of using the high-performance computers on the local display devices.

Xu Jun, director of Shun net technology, said in an interview with the economic news and other media in twenty-first Century that at present, partners such as AMD and Intel are still optimizing the cost process, and the price will be more than one thousand yuan or higher. Both Tencent and Google have entered the market. However, our business model is not the same, mainly through the value-added business of some games, promotion business and so on.

Industry research shows that the application of 5G technology will bring huge market growth to the interactive entertainment industry, and the ability to open and interact with entertainment and deepen the ecological layout of industrial cloud will be a necessary road for the future industry. According to AI media consulting data, the scale of China's cloud game market in 2018 and 2019 was 630 million yuan and 2 billion 240 million yuan respectively.

Although Alibaba has already built a cloud gaming platform, Tsinghua Tongfang, Tencent, HUAWEI and China Mobile, however, it is still too early for cloud games to replace the host market. Its cost is reflected in cloud server deployment, bandwidth leasing, content distribution network and other inputs. Cost recovery depends on the number of users and the average payment. This vision is still only a dream before 5G is widely available.

After all, from the perspective of product form, games are not video and data should be transmitted through two directions. How to solve network delay? Can the core players who have strict requirements for image quality and "zero delay" take the cloud game as the mainstream? In addition, how to protect the interests of players in cloud gaming platform? All these problems are waiting to be solved.

In addition, according to incomplete statistics, in 2019, there were 1570 games that had been checked to get the page number, of which 1462 came from mobile terminals, 65 were end trips, and 20 also had 20 page tours and 23 console games. The total amount has been greatly reduced compared with the past. In the next stage of competition, quality and quality will become the core factor of the game. And in the era of cloud gaming, this competition will be more intense.