How China’s Cloud Growth is Affecting the Gaming Industry

Consumers (and businesses) are moving more and more towards the cloud whether they know it or not. Everything from Smartphones, tablets to the newest hybrid Smart TVs (a combination of traditional TV and web 2.0 cloud based technology) are cloud based. Even that nice customer service agent you talked to the other day reached out to you over the cloud.

Cloud Facilities Growing in China

Most of this cloud based technology whether we know it or not and whether we like it or not, is now being stored in the Chinese Cloud. According to an article, “The Great New American Outsourcing, Clouds to China?” in Forbes magazine, the cloud is the fastest growing infrastructure on the planet, and China intends on outsourcing to the West’s voracious need for Cloud services. With capabilities growing at about four times the rate of their domestic Internet service they are well on their way to being the leader in meeting the Cloud data storage needs of the gaming industry.

Smart TV and Cloud Gaming

While China may not be trying to take over the Smart TV manufacturing industry, they certainly have a heads up. This new TV technology includes both traditional TV and web 2.0 capabilities. Many gaming manufacturers that outsource their Cloud-based gaming data to China intend to offer each new television pre-installed with a few of these cloud based games, and guess where the Cloud data is being stored – in huge server warehouses currently being built in China. (4)

Changes in Console Gaming Too

In Digital Trends Magazine, an interview held with Kaz Hirai, CEO of Sony Entertainment, also suggest that many of the features of the soon to be released PlayStation 4 will also be cloud based. In fact, their recent acquisition of Gaikai was made with the intention of moving their video game industry to the Cloud in a very short period of time.

 The Gaming Telecom Industry

Even the Telecom industry, offering customer service, e-commerce sales help and more, is set to move their operations to the Cloud. According to a study made by Ericcson the global Cloud services market should rise from $55 billion to nearly $130 billion by 2015, all because of new Telecom and other gaming features being moved to the Cloud. Operators eager to jump on the bandwagon are exploring services related to the gaming and other industries that can be offered over the Cloud.

The Mobile World – Made Easy

This new hosted Cloud technology will offer exciting solutions to serious gamers, as the technology will allow them to play from anywhere. The Chinese Cloud gaming infrastructure will allow gamers to access their favorite games from their tablet or SmartPhone just as easily as they can from their gaming device at home.  Virtual Internet is providing a gamut of IaaS cloud services to gaming ISVs, allowing them to reduce costs and create new revenue streams around the world.

Further Reading:

1 – http://www.forbes.com/sites/markpmills/2012/07/16/the-great-new-american-outsourcing-clouds-to-china/

2 – http://www.digitaltrends.com/gaming/sony-ceo-talks-importance-of-cloud-mobile-gaming-to-playstations-future/

3 – http://www.ericsson.com/res/site_AU/docs/2012/ericsson_telecom_cloud_discussion_paper.pdf

4 – http://www.gamesindustryblog.com/2012/01/ces-2012-gameloft-unveils-catalog-of-games-for-lenovo-smart-tv-for-chinese-market/

5 – http://youreguide.vzw.com/a2/mobile-cloud-gaming-onlive-cloud-game-console/

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