Xbox Game Pass Ultimate and PlayStation Now will be the main driving forces.
Research firm Omdia shared a new report which states the cloud gaming market will generate $4 billion in consumer spending in 2021. The analyst thinks household entertainment budgets will be squeezed making cloud gaming and game subscription services more attractive for price-conscious consumers who are not ready to purchase the latest consoles or upgrade PCs.
The report also states that cloud gaming content services, such as Xbox Game Pass Ultimate and PlayStation Now, will be the leaders of the market and generate 70% of the forecasted revenue in 2021. 'PC in the cloud' services (Nvidia GeForce Now) are expected to represent about 7% of the market in 2025.
The company expects cloud gaming to grow at a rate of 188% compared to 2020. What is more, Omdia states that over the next five years cloud gaming revenue will generate $12bn.
You can find the report here. What do you think about the forecast? Are people ready to spend more on cloud gaming? What should companies do to drive growth in this segment?