Sega: Cloud gaming is market's fastest-growing segment

Publishers have a massive opportunity with the cloud market, says managing director of firm's UK operations.

by

Who was there: John Clark, Sega's UK managing director.

What was said: Clark opened his talk at Cloud Gaming Europe by looking at the potential growth for the cloud gaming market. He suggested that in 2010, the PC download games market was roughly $420 million, while cloud services were $85 million. In 2015, he suggested those figures would be $960 million and $460 million, respectively. Those estimates were probably on the low side, he added, based on changes in the market since they were calculated.

Cloud gaming presents a huge opportunity for Sonic and company.

This makes the cloud the fastest-growing sector of the games market, Clark said. This growth can and will continue, in part because there is the potential to reach those outside of the core gaming audience. Specifically, he suggested that franchises such as Football Manager and Total War would work very well via cloud services.

The cloud represents a huge opportunity for publishers as it opens up all manner of new promotional opportunities around events such as the Olympics. There's also significant upside for gamers, due to the much-vaunted potential of cloud services to deliver truly platform-agnostic titles that can run on almost any device, from tablets to televisions to mobile phones.

Takeaway: The cloud is the fastest-growing segment of the gaming market at the moment, and publishers would be very foolhardy not to make sure they've got a strong presence in the space.

Quote: "Now's the time for Sonic to have a resurgence."--Clark, pointing out that Nintendo's refusal to bring its franchises to non-Nintendo platforms gives the speedy Hedgehog a significant opportunity in the cloud.

Discussion

40 comments
awheaten
awheaten

@jaymib Cloud is already on platforms with the vita having the ability to play videogames on PS3 and vise verse. At least I heard that it can from somewhere.

jaymib
jaymib

Just don't bring it to consoles and i'll be happy!

ticklemonster1
ticklemonster1

well i do like how psn has the auto upload feature for game saves, and remote play for games should be expanded..

Ultramarinus
Ultramarinus

Fixed title: Cloud gaming is market's fastest-growing cancer. 'Cloud Total War': DO NOT WANT!!!

VenkmanPHD
VenkmanPHD

Sega cloud, SEGA cloud, SEGA CLOUD! I still love SEGA, and sonic is still the coolest. This would be awesome.

csward
csward

Ok now Sega, you know how many more games you can still rerelease, especially from the Saturn and Dreamcast days. Please make them HD remixes too :)

Auction_Sniper
Auction_Sniper

Cloud gaming is great for convenience; but the downside with streamed games is that you don't get to own them - you are merely buying a license to play them for as long as the service is active. If cloud gaming succeeds, it will be the death of the hobby of 'collecting' video games.

steve4123456789
steve4123456789

Sega neptune!!! Open the project again, and may sega come back to it's former greatness!!!

Sungod1984
Sungod1984

I agree that cloud technology isn't viable for gaming right now and it is a annoying to think that I won't have control over the games I purchase but its gonna happen. I really don't like the concept of cloud gaming, either but all I see is a bunch a people living in denial.

Yulaw2000
Yulaw2000

Cloud gaming is only viable for mmo's, and even then is a waste of bandwidth.

digi-demon
digi-demon

Good luck with that one... Like the previous comments - broadband speeds to low and limited usages are the bottleneck with this Good old Sega... always the optimists - gotta love em :D

008Zulu
008Zulu

Maybe if the entire planet had blazing fast, cheap internet then Cloud gaming will be as popular as the game producers hope. But since we all don't live in South Korea or Romania (it's the world's second fastest) then Cloud gaming will be a pipe dream, a pipe dream filled with crack.

popeyfolger
popeyfolger

I dont know how the rest of you feel, but if i don't have a physical copy of the game i will not buy it period, however i could see how for others this could be a great way to game. I am and will always be a console fan. doesn't mean everyone else has to be.

ZeroX91
ZeroX91

For the love of god don't make PSO2 a cloud game sega.

leeko_link
leeko_link

"Now's the time for Sonic to have a resurgence."--Clark, pointing out that Nintendo's refusal to bring its franchises to non-Nintendo platforms gives the speedy Hedgehog a significant opportunity in the cloud." Fact: Games doesn't have to be in the cloud to be good considering customers don't actually own the game let alone play them offline. I want to have full control and ownership of my games, not a far away source from who-knows-where.

holtrocks
holtrocks

PC was here first PC will be here last.

Double_Wide
Double_Wide

LOL, these guys are only validating the reason for SOPA and PIPA. If Cloud gaming is the future then add video games to list of media that pirated in mass numbers on a daily basis.

apocalypsehorse
apocalypsehorse

could we see a return of sega to the console market? I would LOVE that: "SEGA STOPS THE SHOW AT E3 AFTER ANNOUNCING CLOUD-GAMING CONSOLE!"

xXl_z3r0_lXx
xXl_z3r0_lXx

@Soheriam The gamecube was awesome. Some of the games were on par with ps2 games! It was certainly better than the wii...

xXl_z3r0_lXx
xXl_z3r0_lXx

@ Every one who dislikes cloud gaming Think of it this way, Consoles have always been out, back even to the time that everyone thought they were a bad idea. They wont die out, it's too big a source of income. And look on the bright side pc gamers, it only makes since to release a hard copy of the games alongside the cloud version. So pc gaming might get a little more support :)

USDevilDog
USDevilDog

@scout7 Zynga is not the second largest gaming company. Not even close. Even the once struggling Capcom is producing higher revenue stream than Zynga. I have not begun to talk about UbiSoft, EA, Nintendo, and Activision Blizzard. And, the numbers reported by Zynga are bookings -- which means it does not account for the 30% share Facebook has on these revenues. As a result, its IPO was a massive trading bomb, ending sub $10 a share. In addition, while Zynga's userbase is still in the millions, its year-over-year profits has declined 95%. News about the success of cloud gaming aka DRM gaming is just marketing propaganda.

scout7
scout7

Consoles are just doomed to die. Zynga (farmville) is the second largest gaming company and are launching their own platform, tablet gaming is on the rise (gaming tablets faster than 360), Steam and Origin are building up, and now cloud gaming. GG. Only way to save console is to probably update consoles every 3 years, more motion games, and to stop buying used games.

Sohereiam
Sohereiam

Cloud computing inst growing, its just a new thing, so many people are trying it out, and regretting, besides the firsts Sonic games were the bests, and Nintendo stop being Nintendo ever since the launch of Gamecube.

soulless4now
soulless4now

I'd rather have Sonic on consoles and portables. Only the good games though. >.>

187umKILLAH
187umKILLAH

The day Cloud gaming becomes the only way to purchase new games is the day I stop buying new games.

GriffinBalls
GriffinBalls

@Link3301 Unfortunately yeah dude, see here, http://www.youtube.com/watch?v=vAfxeVxjlhs its similar but on mine it happens continuously and makes it completely unplayable. Although I have just read in the comments it can be fixed by running an xbox360 gamepad emulator, I suppose a work around will do for now. Also in the hub world, sometimes it just zooms in and out for no reason and can do that repeatedely, quite dizzying, lol

Agent-M
Agent-M

Whats the point of calculating the growth potential of cloud services when internet services are still over priced and slow as hell? Although the opportunity to play any game on any platform sounds good, internet in most countries isn't set up in such a manner that people could benefit from such services. Internet in America, in particular, is still unavailable in many places. The places that internet is available, either costs too much, or is a very slow package. Then there is the extremely overpriced and outdated data plans companies like AT&T are selling, these plans are no more than overpriced dial-up, being re-branded as something new and innovative. I think I would rather own the game in hand, then to rely (and pay) for internet services that would hinder, rather then help, my gaming experience.

MajinSquall
MajinSquall

if console gaming goes cloud then i quit i don't like the thought of not actually owning the games or having control of when i can access it because they can take them off any time they like

Ladiesman17
Ladiesman17

Consoles is so last years, there's nothing much changed on Consoles since 1990, and It will eventually died (at some point).. :roll: while on the other hand PC could adapt, Social Network, Outstanding Multi-Players, Outstanding Online Services, Cheap Games, Cutting Edge Graphics, Playable Classics, recently most of PC Games could easily plug & play X-Box 360 Controller, not mention almost some genre only could lives and breath only on PC, (Strategy, Point & Click Adventure, MMOs) you either adapt or died.. ;) And Cloud Gaming is just one of those tides.. If Consoles couldn't embrace then... probably Consoles will died.. sooner than later..

hemoleech
hemoleech

I stopped playing Sonic games when they went 3D.

mustained13
mustained13

Yeah, and the Sega CD and Saturn blew the doors off gaming. Even though I still play mine from time to time....

USDevilDog
USDevilDog

This is highly misleading. It's easy to skew the numbers to push the agenda for cloud DRM onto consoles. What these suits don't tell you is that these numbers include Facebook, browser-based Flash games, and iPhone server-side games. $85 million for the entire year is paltry -- Modern Warfare 3 on the 360/PS3/PC made $400 million in a single day. But these analysts will swear to you that consoles are dying and that cloud is the future. Consoles are not dying... it's just that game companies want to kill them.

Link3301
Link3301

@GriffinBalls Really? Because I've been playing it and I've had no problems. Never heard about that glitch before.

Link3301
Link3301

More proof that consoles will eventually fail and PC will rise.

FuBi2k
FuBi2k

Estimates by 2015 might be a bit high but I do believe that gaming will continue to go this route. I mean, look at the sort of integration that has taken place in the past 5 years. We're in the age of social media and concepts like Cloud Gaming and services such as OnLive will become more and more commonplace.

CamoBullo
CamoBullo

"...the lack of Nintendo franchises across non-Nintendo platforms..." That's the thing: ever since Sonic departed from the Dreamcast, he went... Crappy. In fact, that's happening to a lot of Sega franchises that were once exclusive to Sega consoles. Generations was the best Sonic game in ages and there's no arguing about that, but come on. If Nintendo franchises moved to non-Nintendo consoles, it wouldn't feel right. I don't think Nintendo gamers, such as myself, would like to see Mario in a crowd of generic, boring shooters on consoles such as the Xbox 360. That's like saying Rare is going to make a Donkey Kong game for the 360 -- it's not going to happen.

GriffinBalls
GriffinBalls

""Now's the time for Sonic to have a resurgence." Cloud gaming, multiplatform gaming, and the lack of Nintendo franchises across non-Nintendo platforms present a huge opportunity for Sega's famous blue hedgehog, Clark said." Apart from one minor factor. Sonic games since the megadrive have largely sucked. Generations is a slight change to the formula in that its actually pretty good. Now if only it wasn't so damn buggy. My copy has ceased working as all sonic ever does is go left, looked it up and I'm not the only one, pad is fine, its the game. So alas, I'll never complete it unless it gets fixed.

Lhomity
Lhomity

So much news on cloud-based gaming lately. It's spooky. I don't believe those 2015 estimates, personally. People will try OnLive and other such services, see them for what they are and return to physical media and downloadables.