The journey from Playstation to Playstation Now is a prime example of this transformation in the gaming industry.
Electronics have traditionally been Sony's core business. However, since the 2010s, Sony has undergone a major transition by gradually shifting its focus to providing digital entertainment services.
From merely offering gaming hardware like Playstation, the company expanded to cloud-based gaming services through ‘Playstation Now,’ significantly increasing its annual profits (projected to reach 940 billion Yen by the end of the fiscal year ending March 2021, a 34% increase compared to 2019, according to company reports). Sony’s successful transformation serves as a case study for long-standing electronics companies, showcasing achievements that other companies like Nokia and Toshiba have yet to replicate.
The journey from Playstation to Playstation Now exemplifies the shift in the gaming industry’s focus from high-end hardware production to the development of engaging and sustainable gaming content on cloud platforms.
Looking at the broader gaming sector, the benefits of cloud platforms for service providers and their customers (players) are substantial. These advantages have driven transformative changes in the industry’s landscape, leading to significant achievements for businesses that effectively leverage cloud technology.
Four Changes Cloud Computing Brings to Game Developers
Enhanced Security: This is a standout feature of cloud computing, especially with public clouds, as service providers must maintain industry-standard security levels to prevent unauthorized breaches such as data theft. As a result, data stored in a virtual space becomes much safer compared to other traditional platforms.
Users experience cloud computing services developed by Vietnamese enterprises.
Cost Efficiency: Previously, or in traditional gaming models, companies often had to spend large amounts on server space and bandwidth, especially when releasing a new game. However, with cloud computing—specifically public clouds—game developers can pay only for the capacity they actually use and scale up or down based on real-world demand.
Preventing Piracy: Most games today are no longer available as physical products on the market. Instead, they are stored on cloud servers and accessed by players through their personal devices. This reduces the risk of piracy and unauthorized manipulation (“cracking” and distributing free copies), preserving the originality and uniqueness of the games, ensuring the legitimate and legal rights of game publishers, and protecting the gaming industry from massive financial losses.
User Support: Due to the flexibility and scalability of cloud applications compared to traditional applications, game publishers can provide immediate information and support as soon as players log into their accounts.
Three Changes Cloud Computing Brings to Gamers
Easier Cross-Device Gameplay: First, cloud computing eliminates limitations from low storage capacity, graphics capabilities, and processing power, allowing players to enjoy high-quality games on mid-range devices. Second, instead of relying on gaming consoles like Playstation or Xbox, cloud-based gaming enables users to play on various devices such as laptops, tablets, and smartphones from any location without downloading the games.
Easier Access to Diverse Games: Cloud computing in game development allows players to access a wide variety of games simultaneously and collaborate with multiple partners. This makes the gaming industry more dynamic by creating real-time data and encouraging active player participation. This could pave the way for highly creative and constructive contributions.
Enhanced Experience: Cloud-based game publishers run games on powerful remote servers and stream them to users’ devices, much like YouTube videos. If players have a relatively stable internet connection, they won’t notice a difference in quality between playing on remote cloud servers or using their personal devices or home consoles. Furthermore, in the future, the deployment of 5G technology with faster connectivity than 3G and 4G will enable even better gaming experiences.
Proactivity of Domestic Game Developers and State Policy Support
Currently, many forecasts indicate rapid global growth for cloud-based gaming. According to Analytics Insight, the global industry’s growth rate from 2019 to 2025 is approximately 41.9%, reaching $740 million. Although there are no specific projections for the Vietnamese market, the country has favorable conditions for the development of cloud-based gaming, including advanced digital infrastructure and a large number of internet users.
Therefore, domestic companies need to proactively transition gaming services to cloud platforms, especially public clouds, and invest in creating engaging games. Meanwhile, in the long term, the government should formulate policies for the development of the domestic digital content industry, with a focus on video games and esports, particularly as they have already been recognized as an international competitive sport.
Nguyen Lan Phuong - Institute for Policy Studies and Media Development
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