Reports point to $150 billion incremental opportunity in cloud gaming for telcos
Telcos will soon have the opportunity to bundle Xbox packages into subscription as a result of Microsoft’s recent partnership with Bango, a global platform for data-driven commerce.
By leveraging the Bando platform, Microsoft will open access to Xbox subscriptions and consoles sales, which will make it possible for telcos to bundle Xbox Game Pass Ultimate and Xbox All Access in their subscription packages.
According to a report conducted by Strategy&, which is part of PwC, telecom operators have five ways “to play the game.” There are four different ways to play along the value chain for core activities: An infrastructure play, a distributor play, an initial developer play and an advanced developer play.
While there are different strategies to employ when tackling gaming, it seems imperative that telcos get involved one way or another. This is because, as Joe Cumello, CMO at Ciena told RCR Wireless News, telcos have a “distinct advantage in the cloud gaming space” because they can control both the service and underlying network infrastructure, namely 5G infrastructure, which can help gamers receive a high-quality experience.
When playing on a cloud gaming platform, gamers are accessing powerful servers, which stream games directly to a Windows PC, Mac or Android devices, eliminating the need to download the game or purchase expensive hardware. The platform relies on a decentralized edge-cloud concept to keep the distance between the server and the customer as short as possible. 5G not only promises to provide those things for cloud gaming, but it also will be able to handle the high data demands expected from gaming platform subscribers.
What’s really critical about the opportunity for telcos to leverage 5G for gaming is that gamers, perhaps more than other categories of consumers, are willing to pay for an enhanced experience.
A recent Ribbon Communication’s study revealed that 58% of gamers already pay a premium to their provider to enjoy the best gaming experience possible and a staggering 95% would pay more for this improved experience. The report also indicated that, on average, gamers spend about $84 a month on their current gaming experience, but 60% of respondents are willing to pay 50% more for a better experience.
Ribbon’s new CEO and President Bruce McClelland said that these results point to a $150 billion incremental opportunity in cloud gaming for carriers.
Bango CEO Paul Larbey suggested in a press release, that the partnership will expand the reach of Microsoft’s cloud gaming platform, saying it’s excited to “take Xbox Game Pass and consoles to millions more gamers across the world.”
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