Game streaming is no longer the future; it's the present. At least, that's what Ubisoft believes. Yves Guillemot, the CEO of Ubisoft, recently shared insights into how streaming will redefine the gaming industry, paralleling its impact on TV and film. This comprehensive article will delve into Ubisoft’s plans, the recent deal involving Microsoft and Activision Blizzard, as well as expert forecasts on cloud gaming.
Ubisoft's Streaming Strategy: An Agreement with Microsoft
Ubisoft has recently agreed to acquire the cloud gaming rights for all Activision Blizzard games released outside the European Economic Area. This is subject to the completion of Microsoft’s $69 billion acquisition of Activision Blizzard. Although the intricate details remain undisclosed, Guillemot confirmed a “one-off payment” to Microsoft for this deal. The acquisition exemplifies Ubisoft's forward-thinking approach, strategically positioning itself in the burgeoning field of game streaming.
The Turning Point: Netflix's Streaming Success
Drawing a parallel to Netflix's initial struggles and ultimate success with streaming, Guillemot suggests that the video game industry is poised for a similar transformation. “When Netflix first said it was going to go into streaming, their shares fell a lot, and they were widely criticized,” Guillemot said. "But when it takes off, it will happen very quickly.” This underscores the belief that game streaming is only a matter of time before it becomes mainstream, significantly altering the gaming landscape.
Financial Forecast: The Rise of Cloud Gaming
Research group Omdia estimates that cloud gaming services will generate $3.2 billion in 2023, making up just two percent of the total consumer spending on games. However, this figure is expected to at least double within the next five years. This data backs up Ubisoft’s decision to invest in cloud gaming now. Guillemot stated, “We strongly believe in the next five to 10 years, many games will be streamed and will also be produced in the cloud.”
Emerging Markets: A New Frontier
Emerging markets, where console gaming is less prevalent, are viewed as the fertile ground for the adoption of game streaming. According to Guillemot, countries needing rapid advancement often adopt new technologies faster. Thus, these markets are likely to transition to game streaming more quickly, providing yet another reason behind Ubisoft's strategic move into this sector.