The Potential and Challenges of Cloud Gaming, According to Sony CEO
Cloud gaming has been a concept for more than a decade, but developers continue to face technical hurdles, such as latency and issues with the technology’s business model. Sony CEO, Kenichiro Yoshida, recently spoke about the challenges the company has faced with cloud gaming, stating that while the technology is an “amazing business model,” the technical demands necessary for gaming require further attention.
Gamers seek quick response times and have been hesitant to transition entirely from gaming consoles to streaming games through the internet, as slow connectivity and server speeds can result in delays. Despite this, a number of major companies have entered the market attempting to revolutionize cloud gaming.
Some have been critical of Sony, suggesting that it hasn’t fully embraced its early entrance into the market after acquiring Gaikai. Yoshida himself has also noted that the inefficiencies in the technology’s business model present challenges for companies like Sony, as servers can be idle for a good portion of the day before they encounter high traffic volumes. Nonetheless, the company’s artificial intelligence agent, GT Sophy, has been utilized during its quieter hours for learning AI to beat human competitors at the game Gran Turismo.
Microsoft, on the other hand, has made significant investments in cloud gaming, and in January 2022, announced to purchase publisher Activision for $75 billion. Following such a deal, gaming industry insiders have raised concerns that Microsoft may make Activision’s games exclusive to its cloud gaming service, further exacerbating a cutthroat battle for console gaming dominance with Sony.
Industry analysts and regulatory bodies have scrutinized Microsoft’s rising cloud gaming monopoly, with many suggesting that Microsoft could accelerate the switch from consoles. The United Kingdom’s competition regulator blocked Microsoft’s acquisition of Activision in December 2021, while EU regulators only recently gave the green light for the acquisition following Microsoft’s concessions to ease concerns.
Despite all this, Yoshida believes that cloud gaming has a bright future but requires significant development to increase its market potential. His comments are reflective of broader industry concerns about the need for developers to overcome technological challenges and issues around the business model of cloud gaming.
With more users and publishers transitioning to the internet for gaming, cloud gaming remains a potentially powerful market. However, it may require increased investment and innovation before it can fully replace traditional gaming consoles and PCs.
Summary:
Sony CEO Kenichiro Yoshida points out the technical challenges of cloud gaming, citing the issues around latency, lack of innovation and investment, and the demands for quick response times needed by gamers. Sony’s AI agent, GT Sophy, has been used during quieter periods to learn AI to beat human competitors. Microsoft has invested heavily in cloud gaming by purchasing gaming company Activision for $75 billion, raising concerns about its impact on gaming console dominance. Similarly, Microsoft’s rising cloud gaming monopoly has raised concerns from industry analysts and regulatory bodies alike, about the challenges faced in overcoming technological challenges and the cloud gaming business model.
The Future of Cloud Gaming
Cloud gaming is fast becoming the future of gaming, and while the industry has faced challenges, there is promise that the future of gaming lies online. With many users transitioning to the internet for gaming, businesses and publishers continue to seek innovative ways of delivering quality experiences to an increasing number of users online. Many still rely on gaming consoles and PCs for high-quality gaming experiences. However, cloud gaming offers a new opportunity for gamers to stay connected and enjoy gaming experiences on a variety of devices and platforms.
Some skeptics argue that the industry has yet to reach its potential. Despite early investments, regional and technological issues, such as latency, have hindered progress in the industry. Others, however, remain hopeful that innovation and investment will solve the existing issues and help the industry realize its enormous potential.
It is exciting to consider that, while cloud gaming is still in its early stages, it holds immense promise that this market could become the next revolution in gaming. As the industry shifts online, companies like Sony and Microsoft are pioneering new innovations in cloud gaming techniques and technologies, building a strong foundation for the future of gaming. In the meantime, gamers can expect to see continued investment and improvement in cloud gaming platforms, ensuring that users stay connected and enjoy quality experiences on a variety of devices and platforms.
There are challenges to overcome, but there is no denying the potential and promise that cloud gaming holds in the industry. Only time will tell whether cloud gaming will replace traditional gaming and how developers will tackle the existing issues in the sector.
Overall, companies and developers must continue to innovate, invest, and work to ensure that cloud gaming is a viable alternative to traditional consoles. As companies continue to push forward with their investments, cloud gaming could revolutionize the gaming world as we know it.
Sources:
1. https://www.ft.com/content/cc38a9d8-86e3-41e0-8900-7c6235a9e184
2. https://www.ft.com/stream/4f447b5d-53f5-41bd-ab42-3c0cfc161699
3. https://www.ft.com/content/e60a973f-43ab-4257-a7de-28017a94ac0a
4. https://www.ft.com/content/4f613b90-4646-49dd-83a3-ff796d12f3a9
5. https://www.ft.com/content/5c5cc937-8209-4648-892a-ed74c37d4240
6. https://www.ft.com/content/f5a00e12-3336-439b-99bb-271b4c4e8897
7. https://www.ft.com/gaming
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Sony’s chief executive warned that cloud gaming is still technically “very complicated”, minimizing the risk for the sector’s console maker which is rapidly converting to a technology on which its rival Microsoft has bet heavily.
In an interview with the Financial Times, Kenichiro Yoshida said that the creator of PlayStation will still study “various options” in the future for streaming games over the Internet itself, adding that it could use GT Sophy, its artificial intelligence agentto improve cloud gaming.
“I think the cloud itself is an amazing business model, but when it comes to games, the technical challenges are high,” Yoshida said, citing latency — the fast response times required by gamers — as the biggest problem. “So there will be challenges for cloud gaming, but we want to address those challenges.”
Despite various attempts to redo the game In the cloud industry, many users have yet to transition from a high-end console or gaming PC to streaming games entirely over the Internet, fearing delays that can be caused by slow Internet connectivity and server speeds.
Even the publishers were not entirely supportive. Google in January stop its Stadia streaming service after most game makers held back from making their best titles available on the platform.
The promise of cloud gaming is still unfulfilled after more than a decade of development. Sony was one of the first major companies to enter the market, having acquired cloud gaming company Gaikai for $380 million in 2012 and later the technologies of its rival OnLive.
Though it launched a cloud gaming subscription service in 2014 that’s now integrated with its updated and expanded PS Plus Premium service, analysts say Sony hasn’t capitalized on its initial gamble to establish itself as an industry leader.
Yoshida also pointed out the costly inefficiencies of cloud gaming where servers are idle for much of the day before having to cope with the high traffic levels of players playing during the evening or “dark time”. He added that Sony has responded by unleashing GT Sophy in the quiet hours to learn how to beat human competitors in the car racing simulator Gran Turismo.
“The dark period for cloud gaming was a problem for both Microsoft and Google, but it was significant that we were able to use them [quieter] hours for learning AI,” said Yoshida, speaking at the company’s Tokyo headquarters.
He declined to comment on the impact Sony expects from Microsoft Purchase agreed for 75 billion dollars from publisher Activision, the company behind the call of Duty AND World of Warcraft game franchise, stating that regulatory reviews were continuing.
But the deal has rocked the global gaming industry, where the US software company is engaged in a cut-throat battle with Sony for dominance of console gaming.
Industry and regulatory concerns have focused on Microsoft making Activision’s games exclusive to its cloud gaming service, a move that could potentially accelerate the switch from consoles.
Last month, the UK competition regulator blocked the acquisition, concluding that the acquisition would cement Microsoft’s dominance of the nascent cloud gaming market. According to Microsoft, its Xbox Cloud Gaming service has more than 20 million users.
The regulatory response has been mixed, however, with EU regulators compensation the purchase on the grounds that Microsoft had made concessions to ease its concerns.
If it goes through, the deal would go through Microsoft the third-largest gaming company by revenue, behind Tencent and Sony in China.
https://www.ft.com/content/4b410761-78d8-4bec-a48b-79f1373d42e1
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