Although gaming services have existed for decades, cloud gaming and subscription-based services started to develop in recent years. Revenue in the gaming industry is projected to reach $26.29 billion in 2022 and have an annual growth rate of 6.46%. At this trajectory, cloud-based gaming services could continue to disrupt the subscription gaming industry and impact because they allow users to stream games on almost any screen. This, in turn, could impact the online trading of share prices of major gaming companies.
Netflix’s Push for Mobile Games
Netflix gaming makes it easy for those in search of its various entertainment offerings to access online gaming, which can lead to a greater adoption of the service. It will go after the conventional user rather than the traditional gamer. Netflix’s games will be accessible to users by launching the app once it is downloaded. Netflix is trying to diversify its product offerings to avoid losing users to social services platforms like TikTok, as well as other more traditional gaming platforms.
Netflix gaming is centered around mobile phones, but the company still aims to steal a portion of the gaming industry market. The Netflix subscription base has enabled it to offer games as service exclusives with no ads, purchases, or fees. During its worldwide launch on Android, there were a modest five games available. Netflix’s gradual approach to breaking into the market might lessen its impact on Netflix’s online trading performance. However, the subscription service may just gain traction and keep the platform relevant in the gaming industry.
Google Stadia Cloud Gaming Service Is Taking a New Direction
In 2019, Google launched Stadia as a service for streaming games, likening it to Netflix, offering 22 games upon release. Stadia marked the first time a tech giant attempted to break into the gaming industry. After launching in 14 countries, Stadia received a mixed reception and was met with some skepticism since it had a limited library and incomplete features. People were disappointed that features like voice chat, visible achievements, and social features mentioned at the Game Developers Conference were missing. As features Google promised were not available, Stadia failed to meet 2020 growth targets by several hundreds of thousands of dollars. Stadia was a slightly disappointing entry for Google into the gaming industry and did not help Google’s performance.
In light of the disappointment, Google is giving Stadia an overhaul this year. One major change will allow consumers to browse the Stadia store without having a Stadia or Google account. Another way Google is making the platform more accessible is by offering “click-to-play” trials, which consists of giving consumers timed access to full games without them needing a Stadia or Google account. Stadia’s new features might help Google’s online trading performance in the gaming industry and enable Google to effectively compete with other tech giants with a similar goal.
Apple Considers Launching a Cloud-Based Streaming Service like Competitors
In October 2021, Apple announced that it might consider moving forward with a cloud-based streaming service along with Apple Arcade, its gaming platform. However. Apple dropped these plans because the company prefers using local hardware instead of depending on internet service for consumers to stream games.
Apple Arcade is a subscription-based service that gives customers access to hundreds of games across iPhone, iPod Touch, Mac, and Apple TV costing $50 annually or $5 a month. It is easy to browse and access as customers do not have to spend their time scrolling through the app store. Additionally, Apple Arcade boasts a carefully curated array of games rather than the “open-buffet” type of selection that Netflix offers. There are currently 200 games, and the list keeps expanding.
Apple has made clear that it does not enable its competitors like Nvidia’s GeForce and Google Stadia to join Apple Arcade through the App Store because it does not want cloud services on its gaming devices.
Apple Arcade has successfully helped Apple’s performance because of its continuously growing value. It is Apple’s most lucrative business on the App Store. Apple Arcade has a broad market appeal, not just capturing the likes of traditional gamers.
The Bottom Line
As subscription-based and cloud-streaming gaming services grow in popularity, several tech giants like Netflix, Google, and Apple are breaking into the industry and leaving their mark. CFD traders ought to consider the effect these services will have on the online trading share prices of key tech companies. Netflix’s release of its subscription-based gaming on mobile devices will increase accessibility to regular customers since they already have a Netflix subscription. Netflix is taking a gradual approach to the gaming industry to mitigate the risk of a disappointing performance. Furthermore, Google launched Stadia in 2019, a cloud-streaming gaming service with 22 games upon release. Stadia encountered some shortcomings, lacking particular features that Google promised the platform would have, which led to underperformance. However, Google has revamped Stadia in 2022 to allow broader access for consumers without a Stadia or Google account. This might help Stadia perform better and allow Google to compete with other tech giants launching platforms in the industry. Finally, Apple Arcade is Apple’s subscription-based gaming service that boasts a carefully curated set of games. It is one of Apple’s best businesses on the app store, helping to spotlight Apple’s performance in the market.
