U.S. subscription cloud gaming revenue could hit almost $3 billion in annual subscription revenue, according to new research from Parks Associates.
The report found that nearly a third (30%) of U.S broadband households are interested in a cloud gaming service, while nearly three-quarters (74%) play video games at least an hour a week. This figure jumps to 22 hours per week for heavy gamers.
The entrance of Google’s cloud gaming platform Stadia is probably the highest profile event that illustrates this growing trend. Microsoft is testing the waters too with Project xCloud.
The Parks research further found that multiplatform gamers offer key consumer segments for gaming providers. Unsurprisingly, the report also found that the average number of hours played per week has increased since the COVID-19 outbreak, with PC gaming seeing a jump in the number of hours played weekly.
“There is a renewed interest in offering cloud gaming services that replicate Netflix’s value proposition by allowing consumers to stream games over the internet, across multiple platforms, and without having to download files or use local processing power,” said Kristen Hanich, Parks Associates senior analyst, in a prepared statement. “We estimate, based on consumer interest in these services, the US cloud gaming market stands to generate nearly $3 billion in annual subscription revenue, with the opportunity to generate more revenue via service stacking and add-on sales, provided these offerings are designed and targeted correctly.”
