Battles over streaming break out for video games

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Battles over streaming break out for video games
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  • 📰 TheEconomist
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Streaming games may prove more rewarding than streaming music or TV. Removing specialised hardware opens a bigger market. But it’s a tough business

Los Angeles office with a view of the Hollywood sign, Netflix executives are plotting the next stage of their streaming strategy. The company is the leader in digital streaming of video, with 230m subscribers paying for access to its huge online library of films andOver the past 15 years the music andindustries have seen huge changes in digital-media distribution. In 2008 Spotify began offering online access to a catalogue of music for $10 a month.

Yet streaming is a tough business. Google closed its Stadia game-streaming service in January after barely three years. One obstacle is technical. Games’ interactivity makes them less forgiving than video or music over “latency”, or internet speed. Stadia worked well but was not the console replacement that some had expected. “[Google] said, ‘It’s going to be awesome from day one.

As with music and television, game subscriptions increase people’s consumption. Game Pass subscribers “spend more hours, they play more games, they take chances on games from creators that maybe they haven’t heard of,” says Mr Spencer. He cites the example of “Hi-Fi Rush”, a lighthearted game from a developer better known for horror titles, which recently became a hit on Game Pass.

The hardest task for subscription services is getting third-party developers to add their latest games to a library. Google, which gave up making games of its own, struggled to keep Stadia sufficiently stocked. Some developers see subscriptions as a good way of gaining exposure to wider audiences.

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TheEconomist /  🏆 6. in UK

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