Monday, June 18, 2012

Game Consoles May Finally Have a Worthy Competitor

Monday June 18, 2012 – Shelby Cunningham

I frequently hear people talk about how mobile gaming will be the ultimate video game console killer. I never bought into that theory because the type of gaming that occurs on one platform is so different from the other. Big blockbuster console games just do not translate well on the mobile platform, and a lot of console gamers prefer the TV to the PC, so PC gaming isn’t in the position to win the war either.

At E3 I realized we finally have a potential console-killer on the table, and that killer is cloud gaming. Cloud gaming is simply games being streamed through the cloud using real-time encoding straight to your TV (or tablet or phone or numerous other devices).

My first introduction to cloud gaming came from Gaikai, the company that is finally bringing gamers what they’ve always wanted: the ability to try the actual game for free (at home!) before deciding whether or not to purchase it. The free trial lets gamers play the actual game with nothing hampering the experience except a built in time limit, finally introducing sampling to the game market. Gaikai streams trial games on a number of retailer websites now including Best Buy and Walmart. They don’t handle the sales of the games, the retailers have to do that, but they provide the important service of getting a consumer’s hand on the actual game.

Next came my visit with NVIDIA and their GeForce GRID technology, which is being used to power Gaikai’s service. It is also using real-time encoding to push games through to any device that has the ability to stream video. Samsung was the first to announce a service to bring cloud gaming straight to your TV with their appropriately named Samsung Smart TV Cloud Gaming app. If you have a Samsung Smart TV you can play games right from the app on your TV menu, and Samsung will send you a free controller during Beta testing. Samsung indicated the apps will start appearing on TVs soon, no action necessary. Curious TV owners will probably click on the gaming app just to see what it’s all about and end up trying out some free games.

OnLive has also announced that its games will be available for instant streaming over LG Smart TVs and Android tablets, but I wasn’t able to try that out at E3. OnLive has been around for a couple of years streaming games to PCs and TVs (with the help of its own game console), so it already has a user base that should easily follow them into this streamlined generation of cloud gaming that promises smoother gameplay with easier access.

But why do I think these new services have a chance to eventually dethrone game consoles? Because they seem to work! The games I played on TVs and tablets at E3 were smooth as can be without any detectable lag. It felt just like I was playing on a console. And with cloud gaming, you never have to buy the next generation of hardware because the graphics upgrades occur in the server warehouses. And there are server warehouses spread around the world so that you can connect to the nearest one for the best possible experience.

But there are always cons, and there are a couple of big ones here. Internet provider data caps and throttling have been in the news a lot lately as people stream more video and use significantly more data. Also, rural areas don’t receive the speed of bandwidth required to provide a good cloud gaming experience. These services can stream across mobile airspace as well, but those providers are having the same issue with bandwidth use and throttling heavy users.

Another con, I have discovered from talking to gamers, is that it will take a while to pry the physical discs from some hands. Also important to these consumers is the ability to sell a game once they’re finished with it, something that cannot be done with a game living in the cloud. The lack of a resale option could be tempered by lower game pricing from the start since physical media would no longer be in the picture. As far as the desire to own a physical disc, we just have to hope that people get used to their media living in the cloud rather than in their living room.  But if gamers become comfortable with this new world, cloud gaming may have a chance to take over the home gaming industry. That is, of course, if internet and mobile providers can work out bandwidth solutions and play nice with their customers. That’s a whole other blog post.