Sony Admits Cloud Gaming A “Threat” To Consoles

[Rami Seb]

Pretty interesting read

Sony CFO Hiroki Totoki admitted during Sony's FY2018 Q3 earnings call that cloud gaming is a potential future threat to its business, although the company will remain focused on hardware.

Cloud gaming eliminates the need for an expensive console, allowing gamers to access games on their computer or mobile device as long as they have a stable interest connection — and pay a subscription fee, similar to Netflix's streaming content.
Sony's PlayStation 4 is currently the most popular console on the market, with more than 90 million units shipped worldwide since it was launched in 2013.


However, sales have slowed as many PlayStation fans are awaiting the next generation of the iconic console.
But with cloud-gaming becoming more and more a reality, many began to suspect that the next iteration could be cloud or semi-cloud based.
Totoki have put those suspicions to rest, as he states that it will be some time before the proper infrastructure is available to the gaming industry to full embrace and roll-out a cloud-based gaming model effectively.

"Hardware will become unnecessary, some would argue. But on this point, I think that would take a much the longer the time required for games going to the cloud, it would take much long time, much overtime and also the platforms trying to reduce the revenue share percentage."
PlayStation has its own cloud-based gaming platform, PlayStation Now, which it recently expanded into eight new European countries — no sign of it heading Down Under.

PlayStation Now includes a collection of over 700 PlayStation 2, 3, and 4 games which subscribers are able to play on their computer or PlayStation 4. However, it doesn't include PlayStation's complete library or new releases.

Sony, Microsoft, and Nintendo have dominated the gaming market for decades with little competition, but the latest shifts towards cloud-gaming by big tech companies like Google, Apple, and Amazon who have the cloud-technology, could knock them off the top.

Microsoft is developing its own streaming service, Project xCloud, which enters public beta testing this year and is expanding its Xbox Live online to Nintendo Switch, iOS and Android devices.

Even big game development company EA Games has announced their plans for a cloud-based gaming service, Project Atlas.
The race is on to see who will be the official "Netflix for Games," PlayStation, however, looks like it may be holding onto its hardware for some time yet.

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[CosmicSea]

Well yeah should be obvious,it's why PSN is a thing and will continued to be invested in.

 

[kennyamr]

I mean, it's obvious. That doesn't mean it's a threat to Sony though.
Also, that is why everyone is developing streaming solutions for the future... well almost everyone.
As long as companies have great 1st party content for their platforms, they will be ok.

 

[Deleted member 34618]

Cloud gaming is a threat to video games in general since it results in an objectively far worse experience but the level of control it affords big companies is too alluring for them to not push it heavily.

 

[Deleted member 437]

Can't wait till I no longer own my games, but have to fucking rent them at $4.99 per hour.

 

[ianpm31]

I mean if anybody has an idea about market adoption rate to cloud gaming it would probably be Sony with ps now. They have years of data. As long as we have data caps I won't seriously give a shit about it. I'd rather own my hardware and games.

 

[Toumari]

I'm pretty sure he didn't say that. We had a thread a week ago which recycled the same quotes where he said it'll take more than 5 years for cloud gaming to make consoles obsolete:

https://www.resetera.com/threads/so...r-the-cloud-to-make-consoles-obsolete”.97027/

 

[Deleted member 8561]

Cloud gaming is a threat to video games in general since it results in an objectively far worse experience but the level of control it affords big companies is too alluring for them to not push it heavily.

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Yup, this is what I've been talking about in the last thread, but everyone just poopoos opinions that stuff like GamePass is not in our best interest and is a long term plan to remove consumers of their buying power

 

[BrickArts295]

Its Ironic? I mean they do have the most popular cloud streaming service (I think, I can't think of any that comes close to PS Now in terms of content and awareness) and the most popular console on the current market. I guess they'll just have to play the devils advocate and keep balance between the two XD

 

[ColonelForbin]

Can't wait till I no longer own my games, but have to fucking rent them at $4.99 per hour.

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That's a little extremist. Isn't Microsoft game pass an early example of what this new pay mode might look like? I know it's not streaming but a Netflix like service is appealing to me.

 

[killer7]

1- Cloud gaming eliminates the need for an expensive console (299$-399$ is expansive?).
2- Hardware will become unnecessary, some would argue.
3- But with cloud-gaming becoming more and more a reality, many began to suspect that the next iteration could be cloud or semi-cloud based.

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Pure horror (for me).

 

[billion]

I would disagree. The amount of bullshit that would happen in terms of Comcast reforming and actually making reasonably priced Gigabit Internet. The amount of customer support "Game is low pixeled WAAA HELP".

I think cloud gaming will only be threat until everyone has Gigabit Connections or enough bandwidth to play cloud gaming with low latency.

But at the moment people are still paying $80-120 a month for 25-80Mb Dwn/ 5 Up.

I may be looking at this in a very linear light but this is my opinion

 

[Schreckweg 5000]

I think the title is more than slightly missleading

 

[entremet]

I mean, it's gonna happen. No doubt about it. Happened with business software. Happened with TV/Film. Will happen with gaming.

This community likes to kick and scream about major technological changes, but we're going to be irrelevant in time marketwise.

 

[BernardoOne]

 

[SurrenderDorothy]

Cloud gaming is a threat to video games in general since it results in an objectively far worse experience but the level of control it affords big companies is too alluring for them to not push it heavily.

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Absolutely.
Sounds like a shit future.
Ah well..

This article is taken out of context.
I remember that what happened there was they pretty much have said the opposite, that it will take a lot of time to be a big risk.

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That's a relief, lol. The further away it is, the better.

 

[modiz]

This article is taken out of context.
I remember that what happened there was they pretty much have said the opposite, that it will take a lot of time to be a big risk.

 

[CosmicSea]

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What does this even mean? Maybe I am dumb.

 

[oni-link]

Yeah renting my games forever and playing with input lag is not something I'm looking forward to

 

[entremet]

This article is taken out of context.
I remember that what happened there was they pretty much have said the opposite, that it will take a lot of time to be a big risk.

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Short-term. It is not threat.

Long-term. Absolutely.

 

[CosmicSea]

Yeah renting my games forever and playing with input lag is not something I'm looking forward to

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What if you could download the games now...like you already can?

 

[SilverX]

Mobile gaming is a threat to consoles too correct? There is nothing to admit other than new ways of gaming making consoles less appealing, they are stating the obvious here

 

[TheThreadsThatBindUs]

I'm pretty sure he didn't say that. We had a thread a week ago which recycled the same quotes where he said it'll take more than 5 years for cloud gaming to make consoles obsolete:

https://www.resetera.com/threads/so...r-the-cloud-to-make-consoles-obsolete”.97027/

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This.

Some folks just want to convince us that owning our games and owning our hardware is archaic and we're all luddites for not wanting to embrace the future where multinational publishers hold us all ransom by our foreskins and charge us to roll the dice to win a chance at being able to enjoy playing a videogame.

 

[CosmicSea]

This.

Some folks just want to convince us that owning our games and owning our hardware is archaic and we're all luddites for not wanting to embrace the future where multinational publishers hold us all ransom by our foreskins and charge us to roll the dice to win a chance at being able to enjoy playing a videogame.

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LOL this is true too. Both will co-exist for a long, long, time.

 

[BernardoOne]

What does this even mean? Maybe I am dumb.

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the logo in the right is the PSNow's logo

 

[oni-link]

What if you could download the games now...like you already can?

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Then cool, but I'd still rather own games and run them off my own hardware

I don't doubt streaming will be big, I just hope it doesn't suck as much as I suspect it will

 

[Rosebud]

I'm pretty sure he didn't say that. We had a thread a week ago which recycled the same quotes where he said it'll take more than 5 years for cloud gaming to make consoles obsolete:

https://www.resetera.com/threads/so...r-the-cloud-to-make-consoles-obsolete”.97027/

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5 years is a short time tbh, less than a console generation

 

[CosmicSea]

the logo in the right is the PSNow's logo

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I still don't get it lol, what is it trying to say?

 

[SurrenderDorothy]

What if you could download the games now...like you already can?

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As long as that's available I'd be fine with it. I'd prefer hardware but understand that it's not going to be around forever.
As long as I have the choice to play my games offline, downloaded or physical. I'm good.

 

[Deleted member 17207]

I don't know. If you asked me in the 90s if I was ready for an all-digital movie future, I'd've said "nah man I like having VHSs" and the same for DVDs in the 2000s etc.

But now? I need to unload all of my physical movies because they just take up space. Everything is right there either on Netflix, Prime, whatever - and if it's not, I'll just rent it on YouTube. 4.99 every now and then is way better than 30 bucks on a blu ray for everything I might want to watch.

So while "not owning" games might seem scary, I have a feeling once it looks and feels like movies do now, we'll pretty much forget our fears.

This being said, the various platforms have done a way better job (at least for what I look for) of getting older movies available on new streaming services. Old games? Shit, that needs to be rectified REAL quick, especially before I consider an all-digital future. I want to know that I'll always be able to "go on Netflix or Youtube" to rent a game I might want to play, and not need to get a cartridge and an old system to play it or something. I've never had to dig out a VCR to watch a movie, while I DO have to dig out my N64 if I want to play something like Mystical Ninja: Goemon's Great Adventure.

Until I know that every game in history (or at least 99% of them) is available digitally somewhere, I'm not sure I'll give up my physical games and be ready for an all-digital future.

 

[CosmicSea]

Then cool, but I'd still rather own games and run them off my own hardware

I don't doubt streaming will be big, I just hope it doesn't suck as much as I suspect it will

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Fair enough, just was not sure if you were aware downloading was an option. I do agree though, this sounds crappy for me personally...I like owning my games.

 

[Iwao]

Some people have gone from "world's most powerful console" to "lower quality streaming is the future" way too fast and that is just strange to me. Game streaming is an immediate convenience that clouds just how detrimental a focus it is in the long term as far as ownership goes.

Publishers want control, they want as much of it as possible, and they expect us to let them have it through the lens of convenience.

 

[Jack-O-Lantern]

So, what about PSNow?!

 

[modiz]

Short-term. It is not threat.

Long-term. Absolutely.

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I remember when people said strong computers will make consoles obsolete, or when smart phones will make consoles obsolete, weird that didnt happen.

 

[Deleted member 18944]

"cloud gaming is a potential future threat to its business"

Too bad it's not going to be an issue for like, another 10 years.

 

[Lashley]

Obviously

 

[Deleted member 10629]

I don't think cloud gaming is that near from us. And even then it will take a while to replace traditional consoles or game services as we now it.

The investments on infrastructure will be tremendous, I don't think most of the world is or will be ready in at least 20 years for it to be a rentable business venutre.

 

[entremet]

I remember when people said strong computers will make consoles obsolete, or when smart phones will make consoles obsolete, weird that didnt happen.

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Surely you can see the difference between these.

Mobile games never had built input devices. They also didn't allow for widespread TV play.

I don't remember anyone saying PCs would overtake consoles. People have been saying the PC has been dying for ages now though lol.

 

[Arulan]

Of course it is. The primary audience of consoles is the mainstream audience. If streaming becomes good enough, its convenience will easily win that audience.

 

[Bunkles]

I remember when people said strong computers will make consoles obsolete, or when smart phones will make consoles obsolete, weird that didnt happen.

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Smart phones currently don't satisfy the demands of hardcore gamers. If a gamer can launch a streaming service from their TV / Phone / PC / whatever and easily play their favorite games, it will render consoles obsolete in the future. The tech just isn't there yet.

 

[pswii60]

Microsoft is propositioning xCloud as complimentary to hardware, rather than replacing it. You play your digital library on console/PC at home, then pick up where you left off via xCloud when you're on the go via 5G.

And on that basis I don't think it's a threat at all in the foreseeable future. But I do think whoever gets that hybrid model right next gen, will see significant success. As long as they have the right content to back it up. PS Now will need to see significant improvements tech-wise, and it'll also need to let you play your console library wherever you go and on any device, before it matches the xCloud vision. That said, xCloud is still just talk at this stage and the proof will be in the pudding.

Personally speaking, I couldn't imagine ever playing games in the home on anything but native hardware. But as I travel with work, I'd love the option to access my games at any time on the go via the cloud, especially with 5G rolling out this year.

 

[gofreak]

This is a week old now.

https://www.resetera.com/threads/so...r-the-cloud-to-make-consoles-obsolete”.97027/

 

[Servbot24]

It's obviously a threat in the long term, and obviously not a threat next gen.

 

[-PyramidSong]

The future sucks

 

[TheRealTalker]

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lol thread delivered

 

[Ayirek]

I just don't see streaming superseding the current paradigm while there are still large parts of the world (including the US) where broadband simply doesn't exist.

 

[janusff]

old news there's already a thread

 

[Reinhard]

With the prevalence of data caps and/or "slow" internet speeds in the US, I don't see much of a threat of cloud gaming there. I already use up 60-85% of my data each month without cloud gaming, I can't imagine somehow managing it with the cloud... Also, it has to be hell of allot better than PS Now, that was a piss poor streaming experience.

 

[modiz]

Surely you can see the difference between these.

Mobile games never had built input devices. They also didn't allow for widespread TV play.

I don't remember anyone saying PCs would overtake consoles. People have been saying the PC has been dying for ages now though lol.

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The point is, everyone was soooo sure consoles are dead, even most publishers were hesitant to develop games for next gen in fear of mobile overtaking consoles, people underestimate consoles, but the fact is, most rather play their games through them rather than "alternatives"

 

[DoubleTake]

Imagine a world where streaming games is all there is. Native input lag, streaming server ping, plus online multiplayer latency. I can see it now. Street Fighter 7: Rock, Paper, Scissors Edition.

Streaming games as standard can stay far, far away.