Streaming Gaming Will Change The Video Game Industry. Here’s Why

Hardware and Wi-Fi requirements

Beyond the complexity within the industry, cloud gaming poses one major potential problem for consumers: If my Wi-Fi connection isn’t strong, can I even play any games in the cloud? Well, probably not, as playing a video game over the cloud involves a huge amount of data transferring back and forth.

“This is ultimately a network-based service, so you do need to have a good connection,” said Microsoft’s Stillwell. “The target we have is if you can stream a video, you should be able to play a game.”

And though the hope is that cloud gaming will arrive on all platforms, it’s not quite there yet. Microsoft, for example, is still working on iOS compatibility. In the future it also plans to launch touch controls for phones so someday an add-on controller may not be needed at all.

But for now, cloud gaming is still in its infancy. As Dreunen, the SuperData analyst, sees it, “it’s going to take a village to raise this cloud baby.”

Correction: A previous version of this story provided the incorrect number of games available for Project xCloud. It also provided an incorrect number for Microsoft’s data center locations.

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