In a recent report, Ericsson concluded that cloud gaming is expected to reach 99 million North American 5G subscribers over the next decade
A few weeks ago, Ericsson’s strategy consulting arm inCode published a 5G cloud gaming report in which it concluded that cloud gaming is expected to reach 99 million North American 5G subscribers over the next decade. RCR Wireless News spoke with Richard Rosmarin, the head of inCode, about the report and the opportunity that the gaming industry presents for operators.
“What we like about gaming is that it’s about scale. It’s something operators can take advantage of short-term,” said Rosmarin, adding that they’ve spent billions on 5G network infrastructure and are now “looking for something different” to offer consumers.
The promise of cloud gaming, which refers to running a game on a nearby server and streaming it to the player, is that it frees the player from the confines of relying on a computer or console with powerful, expensive graphics and hardware.
This promise, though, depends on delivering a console-like experience, and therefore, the quality and reliability of a gamer’s connectivity is paramount. In fact, according to the Ericsson report, 47% of gamers said that reduced lag is a key connectivity improvement. 5G is expected to offer the required low latency and high-speed connectivity, as well as the ability to handle the high data demands expected from gaming platform subscribers, that this segment needs.
“We have been looking at what are compelling, scalable use cases for 5G,” Rosmarin said. “Most of the operators have stayed at the connectivity portion of the value stack… [but] if you think about what the consumer would be driven to have over time, it’s clear more and better experiences.”
Not only are there a lot of gamers out there, but they are also known to be passionate and somewhat technologically savvy. As such, they are willing to pay more for a better gaming experience. “This is a user base where there is evidence that they will pay premiums for a better experience,” Rosmarin confirmed.
One way to ensure this better experience, explained Rosmarin is by offering network slicing as a premium service. “If you think about the higher performing gamers, they require lower latency and higher bandwidth [and] some level of guaranteed performance. Network slicing is an excellent tool to deliver those three aspects for the end user.”
Ericsson’s report predicted that cloud gaming slices will drive 4% service revenue increase for service providers, and while that number may seem small, Rosmarin assured that it’s actually “a fair amount of revenue.”
Without network slicing, a gamer must compete with everyone else for the same data pipeline, resulting in best-effort connectivity. “But if you want the best gaming experience, you don’t want best effort,” stated Rosmarin.
