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3.5 Billion ‘Gamers’ Globally by 2024, but Cloud Gaming Must Evaluate Business Models in Order to Survive

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3.5 Billion ‘Gamers’ Globally by 2024, but Cloud Gaming Must Evaluate Business Models in Order to Survive
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Report by ABI Research and InterDigital confirms cloud gaming providers should favor subscription-based pricing models to take advantage of market potential
A new report from ABI Research has found almost half of the expected population in 2024 will be gamers. To take advantage of this huge market potential, telecommunications companies, internet service providers (ISPs), and original equipment manufacturers (OEMs) must evaluate different business models to determine whether the service will succeed or fail.

Commissioned by InterDigital, the report “Cloud gaming: Enabling a next generation gaming and streaming paradigm” states that the video gaming market is now among the largest entertainment industries in the world. Currently, more than 2.3 billion individuals play video games, and the number of gamers is expected to grow substantially over the next four years to more than 3.5 billion gamers by 2024. The Asia-Pacific region represents the largest gaming base with 51% of the worldwide total. The Americas, at roughly 20% of the player base, represent the second largest revenue opportunity.

The report suggests that for cloud gaming operators to capitalize on this growing industry, they must evaluate their business models while the market is in the early stages of its life cycle. Over-the top media services, like online video streaming, offer the most pragmatic and consumer-friendly option thanks to monthly, quarterly, or annual subscription plans. Consumers favor unlimited subscription plans over time-based payment plans, even if they end up paying more than what they would on a usage payment plan.

Subscription models are also intended to shape user behavior. A parallel can be drawn with mobile data, where caps were implemented to increase revenue, but also to dictate usage. While usage-based fees are less popular, they could prove to be the optimal strategy for market players in early cloud gaming days, especially when it might be challenging to convert the core gaming audience from gaming PCs and consoles.

Furthermore, the future of cloud gaming doesn’t solely lie in traditional video games. According to the report, there are increasing opportunities for market players to add gaming elements to non-gaming activities and content. Gamification can increase flexibility in delivery and consumption, opening new use cases and applications, such as within workplace collaboration tools and fitness applications. Augmented Reality (AR) and Virtual Reality (VR) also have inherent synergy with gaming and, more specifically, with cloud gaming.

“The cloud gaming market is rapidly growing, and it’s clear those who act now will capitalize on this opportunity. But these players need to act fast if they want to take advantage of everything this exciting market has to offer,” said Laurent Depersin, R&I Senior Lab Director at InterDigital. “As developments in 5G and Wi-Fi penetrate the mainstream, enabling more products and services to become gamified, we’ll see Gaming-as-a-Service (GaaS) really come to life—pulling in new gamers, and encouraging existing ones to make the transition to the cloud, thanks to its user friendly business model. For cloud gaming and GaaS to succeed, players need to ensure they deliver both the right business model and the right user experience to drive mainstream adoption.”

To access the full report ‘Cloud gaming: Enabling a next generation gaming and streaming paradigm’ please click here.


Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: 3.5 Billion ‘Gamers’ Globally by 2024, but Cloud Gaming Must Evaluate Business Models in Order to Survive

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Gaming Realms Signs Licensing Agreement with Pragmatic Play

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Gaming Realms Signs Licensing Agreement with Pragmatic Play
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Gaming Realms has signed a licensing agreement with Pragmatic Play to produce Pragmatic Play-themed Slingo games.

Under the terms of the agreement, Gaming Realms is to license market-leading brands from Pragmatic Play’s expansive game portfolio, including Sweet Bonanza and Wolf Gold, to create Slingo games.

Michael Buckley, executive chairman of Gaming Realms, said: “This licensing partnership with Pragmatic Play opens up a range of cross-sell benefits to both parties. The collaboration between two organisations with a key focus on content innovation in the digital space is truly exciting.

“Pragmatic Play creates engaging and immersive gaming content that fits perfectly with Slingo; we’re hoping this announcement should excite both operators and players.”

Yossi Barzely, chief business development officer at Pragmatic Play, said: “Creating memorable gaming experiences is a priority for us and Gaming Realms has an excellent reputation through its Slingo portfolio.

“We have an extremely positive feeling about the potential for Pragmatic Play-themed Slingo games and are eager to see this partnership realise its potential.”

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Betway and Surrey CCC announce partnership

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Betway and Surrey CCC announce partnership
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Global online betting and gaming company Betway and Surrey County Cricket Club are proud to announce their new partnership agreement.

As one of the leading counties in English cricket, Surrey showcases some of the best international and English cricket talent at the globally renowned Kia Oval. Producing the likes of Rory Burns, Ollie Pope and Jason Roy, this announcement will see Betway gain access to Surrey CCC talent.

The agreement will also see venue branding at all domestic and international matches, as well as the bookmaker’s logo on all Vitality T20 Blast shirts.

Joining Betway’s impressive cricket portfolio which already includes Cricket South Africa, Cricket West Indies and Kevin Pietersen, this announcement solidifies the brand’s status as the leading online bookmaker within cricket globally.

Anthony Werkman, CEO of Betway said: “We are extremely happy to be announcing our partnership with the Surrey County Cricket Club. It enforces our continued commitment to cricket and we can’t wait to watch the team compete in the Vitality T20 Blast, LV= Insurance County Championship and Royal London One Day Cup.”

Kevin Pietersen, Brand Ambassador for Betway said: “It’s great to see Betway and my old county Surrey going into partnership. I had a great time at the Oval. The atmosphere there is fantastic and always helps to make the cricket an exciting spectacle.

“Surrey are competing for three different county titles, as well as hosting the fourth match of a blockbuster Test series between England and India. It looks set to be a memorable summer of cricket.”

George Hampson, Head of Corporate Sales at Surrey County Cricket Club and The Kia Oval, said: “As we look forward to a hugely exciting season at The Kia Oval we’re very happy to be partnering with Betway, one of the UK’s most exciting and innovative betting companies.”

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Star Entertainment Submits Proposal to Merge with Crown Resorts

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Star Entertainment Submits Proposal to Merge with Crown Resorts
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Australia’s Star Entertainment Group has submitted a conditional, non-binding, indicative proposal to merge with Crown Resorts.

According to details released via the ASX, the proposal values Crown’s shares in excess of AU$14 per share – exceeding the value put forward by competing bids in recent weeks which value Crown at closer to AU$12 per share.

Those competing bids include a revised offer from American multinational private equity and hedge fund giant The Blackstone Group, received over the weekend, which increases its bid from an original AU$11.85 per share to AU$12.35 per share.

US global asset management firm Oaktree Capital Management L.P. has also proposed a AU$3 billion offer to acquire the 37% stake in Crown currently held by James Packer’s Consolidated Press Holdings.

However, Star has outlined its case for a merger, with the offer representing a share exchange ratio of 2.68 The Star shares per Crown share with a cash alternative of AU$12.50 per Crown share for up to 25% of Crown’s issued share capital.

“Based on recent trading values of The Star and the substantial value that would be unlocked by a merger, The Star estimates its pro forma share price to be more than AU$5 per share, implying potential value of the Scrip Consideration in excess of AU$14 per Crown share,” it said.

The Star said it believes a merger represents a “compelling value proposition for all shareholders by creating a national tourism and entertainment leader with a world-class portfolio of integrated resorts with enhanced scale and geographic earnings diversification, significant balance sheet strength and free cash flow generation.”

It would also allow for AU$150 million to AU$200 million in cost synergies per annum with an estimated net value of AU$2 billion.

“A merger of The Star and Crown would result in significant scale and diversification and unlock an estimated AU$2 billion in net value from synergies,” Star Chairman John O’Neill said.

“With a portfolio of world-class properties across four states in Australia’s most attractive and populated catchment areas and tourism hubs, the combined group would be a compelling investment proposition and one of the largest and most attractive integrated resort operators in the Asia Pacific region.”

According to Star, a merger would also open the door for potential sale and leaseback opportunities on some of the group’s enhanced property portfolio – leaving the door open for the likes of Blackstone and Oaktree to acquire assets in the future.

Crown said it has not yet formed a view on the merits of the proposal and will commence an assessment process on its merits.

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