Cloud Gaming : Explained in a Nutshell

Updated on February 24, 2025 9 min Read
Cloud Gaming Explained in a Nutshell

New experiences offered by the world of computer games imply that you can play beautifully rendered, high-definition games on any device without an upfront investment in hardware. Cloud gaming is increasingly sweeping the world in this renaissance in game technology. Statista, in its report, projects that the global cloud gaming market size will reach approximately USD 10.46 billion and grow at a CAGR of 24.71% from 2025 to 2029, thereby creating a market volume of USD 25.30 billion in 2029. 

The onrush is fueled by improvements in cloud gaming infrastructure and the rapid adoption of high-speed internet, making gaming easier than ever. Companies providing free trial options have eased the entry for cloud gaming and let the players experience the premium games without any initial investment. 

Cloud gaming allows the player to stream their game directly to any device without downloads, long wait times, or disc space. Mobile cloud gaming has grown multifold, with smartphones becoming real gaming machinery. This has mainly been the trend in areas where mobile devices are the only source for accessing the internet. 

This blog articulates the values behind what exactly cloud-based gaming is and how cloud gaming works for developers and customers. This means cloud gaming has empowered a seamless gameplay experience on different devices. This technological change helps democratize gaming and provides room for new paradigms of game development and distribution.

This blog will take you into the surreal world of cloud gaming to learn how it works and how it is changing the gaming industry. From the rise of mobile cloud gaming to cloud game infrastructure and the best platforms today, we’ll explore the newest trends affecting the industry. 

Whether you want to know about cloud gaming freeways or the cloud gaming future, this blog will cover everything you need to put yourself in front of gaming innovation. Therefore, staying informed about the cloud gaming platforms and their offerings will allow gamers to make the most of this exciting new avenue in digital entertainment.

Let’s See How It All Started?

In 2000, G-cluster gave a demonstration on cloud computing technology at E3 (Electronic Entertainment Expo). The idea behind cloud gaming is to eliminate heavy gaming PCs with powerful graphics hardware. So, all the heavy lifting will be done in the cloud.

The original idea of cloud gaming is to offer the cloud gaming service over Wi-Fi to handheld devices. With the announcement of PlayStation Now on January 7, 2014, Sony Computer Entertainment created hype among all the technology geeks those who enjoy playing online video games. The response was so massive that the audience from all age groups started experiencing it and they accepted it with open arms and loved to the fullest. Impressed with the success of PlayStation, Microsoft and Google also jumped into the competition.

On 19 March 2019, Google announced a project at Game Developers Conference at Stadia which supports gameplay at 4K and 60 fps and the future plan for scaling to 8K at 120 fps.
Microsoft also announced the Project xCloud on October 8, 2018.

What is Cloud Gaming?

Cloud gaming which is also known as gaming on demand, is a type of online gaming.When you opt for the infrastructural cloud for games, you get on-demand video streaming of games on computers, mobile devices, tablets, etc.Thus, it allows users to play a game at any place and time. This type of gaming is not stored on any gamer’s system instead it resides on a company server.

At present there are two types of cloud games available :
(i) Cloud game that is based on video streaming
(ii) Cloud game that is based on file streaming

Cloud Gaming

There is an accessibility and user limitation to the device games. However, games on cloud infrastructure break this limitation where multiple users access cloud gaming for free from any corner of the world. Again for the heavy graphics games, your device must be a compatible one or a powerful one. This is an idea behind the PC gaming world, that are designed to run on some specific PCs.

But, Cloud gaming is introduced to remove these limitations by utilizing the internet and streaming video. That means, simply offload all the processing. Cloud gaming shows the game to the players instead of running the game on devices. All the processing, graphics rendering, and input processing are done by the game that is running on a high powered server computer so that your device doesn’t need to have the powerful backups. The only thing that your terminal needs is to be able to display the graphics feed as streaming video.

How Does Cloud Gaming Work?

For any kind of gaming, its hardware is a vital part. From ZX spectrum to all the latest consoles and PC graphic cards have strong hardware which is kept near to the desktop, TV and other devices.
However in cloud gaming, this fundamental has changed and instead of running games on any device at the user’s place, cloud-based service performs all the processing at other physical location (server location) which can be miles away from users place.

So to connect to the server, gamers will definitely need a medium, right?

You will be surprised to know that, this connection is formed by a simple internet connection. Yes, there isn’t any need of having on-board gaming capabilities, any internet-enabled device can do it, be it a laptop/desktop, smart TV or a tablet.

Is Cloud Gaming Really Ruling Us?

As per the report, it is found that global cloud gaming market was valued to approximately USD 802 million in 2017. There are still the signs of growing cloud gaming which can generate a revenue of around USD 6,944 billion by 2026, this will surely increase the CAGR around 27.2% between 2018 and 2026.

To play online games, you will definitely need the newest gaming hardware which isn’t cheap. You may need to spend thousands of bucks to buy a console or buy a tricked – PC, plus the games that you like to play. The gaming technology is changing constantly, it is evolving day by day and upgrading the hardware after every few years is mandatory, so as to enjoy the games.

An easy solution of connecting the devices to the cloud reduces your subscription fees. Also, the provider takes all the responsibilities of maintaining high-end gaming systems, so that you won’t encounter any technical issues. Again, you don’t need any on-site cloud game infrastructure or hardware; thus, cloud gaming saves space in your home!

But, as it is said that every coin has two sides, so does cloud gaming has. The main drawback of cloud gaming is latency gap. You can opt for the most powerful data center, cutting-edge hardware running the latest titles at ultra-high settings and frame-rates, but your gaming experience will depend on the speed of your cloud internet connection. The best cloud gaming services depend on real-time interaction, so the time lag between a button press and the action playing out can be very destructive. So, it is important to make sure that the latency gap is kept minimum to ensure that it will give you the best playing experience.

The second factor that has hampered online cloud gaming in the past days is the bandwidth which is not enough to deliver responsive gameplay. Though we have stepped into the 5G internet speed generation, still not much of the audience is using the service to its fullest. Still, the issue of poor internet connectivity and bandwidth caps is present even in some of the developed countries. Thus, as of now, we cannot say that cloud-based gaming is ruling us.

Related: How MilesWeb Can Make Your AWS Cloud Journey Successful!

Advantages of Cloud Gaming: 

1) No Need For Expensive Investments

To play cloud games you don’t need to upgrade your PC or console. Invest smartly only in existing hardware and access cloud gaming free of cost. Only you have to plug the gaming console into your television and home network. 

2) No Limitations On OS

Most of the high-end, non-mobile games are currently available for the Windows PCs and consoles. On the other hand, cloud games are platform-independent that allow playing your favorite games on PC, tablets, and mobiles running on Mac, Linux, Android, iOS, Chrome OS, Windows RT, and other operating systems. It is also available for the systems that run only on Windows.

3) Easily Integrating Games

Nowadays almost all the TV manufacturers are integrating support for cloud-based gaming into their smart TVs. They don’t need to install any heavy hardware into it rather, any TV software with a controller could be used for gaming without any additional boxes. Some TVs already have the feature included via their OnLive integration.

4) Play Instant Games

Some of the heavy graphics games may need a download of 10GB, 20GB or even more before you can play them. But the best cloud gaming platforms allow you to play the games instantly, as the server already has the game installed, allowing you to play it immediately.

Conclusion

Cloud gaming, therefore, is altering the way of playing games beyond hardware constraints, owing to providing great accessibility. Thanks to such phenomenal growth of cloud-based gaming, it has become a smooth-sailing environment for players on any device, from PCs to smartphones. The success of online cloud gaming, however, hinges upon reliable infrastructure, low-latency connections, and scalable hosting solutions.

This is where the role of MilesWeb‘s cloud hosting is essential. With MilesWeb’s high-performance servers, ultra-low latency, and scalable resources, you can have smooth gameplay and uninterrupted gaming sessions. Whether you are a gamer, a developer, or a cloud gaming service provider, their cloud gaming infrastructure gives the speed, security, and reliability necessary for an optimal gaming experience. The right web hosting solution may be the one turning point enhancing the future of cloud gaming.

FAQs

Who are the key competitors in cloud gaming technology?

The key competitors in cloud gaming technology include Amazon, Microsoft, Nvidia, Tencent, and Ubitus.

What is the minimum system requirement for an online cloud gaming service?

Generally accepted minimum system requirements for online cloud gaming services include:
– Internet Connection: A stable connection of at least 10 Mbps download speed; for enhanced gaming experience, some recommend about 20 Mbps.
– Device Compatibility: For the most part, all Windows PCs, Mac computers, and Android devices are supported.
– Input Devices: These will possibly be a controller or keyboard and mouse, depending on the different requirements for each game.
Requirements may vary between services, so you should refer to the respective guidelines with the service provider for exact information.

Does the best cloud gaming platform support all types of games?

Not every type of game can ever be played using even the best available cloud gaming service because every platform has so many games in its library that it has some older or very specialized titles that may also not be playable through cloud streaming technology due to technical limitations.

How safe is mobile cloud gaming? What are the security and privacy concerns?

Mobile cloud gaming provides convenience and accessibility, but it also comes with security and privacy concerns. Potential threats include data breaches, unauthorized access to personal information, and vulnerabilities in data transmission. To resolve these issues, it is suggested to use secure private networks or reliable VPNs, exercise caution during in-app purchases, and restrict data sharing.

The Author

With an interest in doing something creative daily, Sonam works as a Digital Marketing Executive. She likes to write technical blogs related to web hosting, digital marketing, and other IT topics. She also likes to spend her leisure time on social media.

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