Madrid, 18th March, 2019 – PlayGiga and Ooredoo have announced the first cloud gaming service in Qatar: WADE – Powered by Ooredoo. This new service will deliver high-quality video games to the public without the need to buy a video console or gaming PC.
Ooredoo is the first telco provider to launch a game streaming service in Qatar. By distributing WADE, Ooredoo tv customers will be able to subscribe to the gaming service powered by WADE and enjoy on their TV a similar experience to that of a next-generation console for only QR50 per month (around EUR12).
The new service will allow Ooredoo tv customers to play console-quality video games via streaming without the need to buy expensive consoles or a gaming PC, or to pay for each game individually or waiting while downloading large files to their computers or gaming consoles. WADE includes a curated selection of top-quality games that will be constantly expanding to 80 titles. The catalogue includes popular franchises from top-tier publishers such as MotoGP™18, Tennis World Tour, Superhot, Sniper: Ghost Warrior 3 and Garfield Kart, among many others, as well as cherry-picked independent games of different genres including racing, kids, action, adventure and more, selected by PlayGiga´s team of experts.
According to the latest study by the company Newzoo, the video game industry was valued at $135 billion in 2018. This is larger than the combined value of the music and movie industries. With the Cloud Gaming technology provided by PlayGiga, telcos can now capture this interactive entertainment opportunity, and complement their PayTV service with a gaming offering that can be accessed from the subscriber’s TV screen. Cloud gaming allows telcos to increase revenues and reduce churn by improving customer engagement.
Yousuf Abdulla Al Kubaisi, COO, Ooredoo, said: “Ooredoo aims, with this initiative, to become a leader in the local gaming world. Cloud-based gaming is the future of how people will consume video games. In a world moving towards the cloud and billions of connected devices, all our customers need is Ooredoo´s set-top box and fibre internet connection to reap the benefits of this new service extension”.
“We are extremely pleased to announce this joint initiative with a partner like Ooredoo´s” said Javier Polo, PlayGiga´s CEO. “It´s a significant recognition of the quality of our proprietary WADE brand and technology and it marks a key milestone in PlayGiga´s international expansion”.
On Valentine´s Day, the Media HoneyPot audience fell in love with the unmissable opportunity for telcos to enter the videogames space thanks to cloud gaming.
Presentation by Javier Polo, PlayGiga´s CEO.
Now that faster internet connections have become commonplace and the connectivity is not an obstacle any longer, most tier-one game publishers (EA, Ubisoft, Capcom, Take-Two…) have enthusiastically jumped on the cloud gaming technology, following the steps of the well-known projects of Sony, Microsoft and Google.
Benefits for users are clear: 53% of Steam users do not meet the minimum hardware requirements to play the latest AAA games from top publishers. Cloud gaming’s technology makes top quality videogames accessible to everyone but… what are the advantages for both publishers and developers?
1. An expanded market.
Cloud gaming lowers significantly the entry barriers to games multiplying the market reach. EA´s CEO Andrew Wilson has acknowledged that there´s a 100 million people gap between the HD gamers they do have and the people who are actually playing games in other, lower spec, devices. “For what is essentially the same investment in the creation of the content, we might entertain an additional 100 million players”.
2. One format-fits-them-all
Videogames are difficult and expensive to develop because of the different hardware combinations that demand additional development and testing resources. With game streaming, however, developers only work with a unified platform.
3. New games and new game behavior insights
Developers are figuring out new games that take advantage of the cloud gaming architecture in order to deliver experiences that can´t be achieved by the existing technology. Relying on a network of servers dedicated to complex tasks, the developer gets more power, agility and scalability and may focus on gamer interaction, immersion and personalization. Cloud gaming helps to identify better the players´ behaviors and analyze their gameplay patterns in order to optimize user experience and raise revenue.
4. No piracy
If games run on remote servers instead of on your own computer, they’ll be almost impossible to pirate. This makes cloud gaming an attractive form of DRM to publishers.
Publishers have acknowledged these benefits and, while the support to cloud gaming technology is clear and explicit, some have confessed to having doubts about the subscription business models that often go paired with it.
There´s no denying that entertainment is shifting towards subscription. In the US, Superdata has noted that 74% of people who spend on digital video do it through services like Netflix and Hulu.
Publishers are wrong, however, when they assume that this subscription trend will have a negative impact in their bottom line. The reasons are the following:
1. Word-of-mouth advertising
As Microsoft´s Head of Xbox has recently declared, putting games on subscription actually increases sales of the individual game because it functions as word-of-mouth advertising for the game.
2. Higher spend per user
Superdata has noted that, on average, subscribers to game services spend $25 a month on in-game content, compared to $10 for non-subscribers. And even with the subscriptions, those users are spending $57 a month on full game purchases, compared to the non-subscriber average of $39.
Subscription models are definitively profitable but they´re just a possibility out of many others: Rental, Pay-as-you-go or monetizing in streaming through engagement and microtransactions, which is what most of the game industry is doing now anyway.
PlayGiga´s technology can help you multiply the market reach of your games. Get in contact with us asap to learn more about our cloud gaming solution for publishers.
Are you a videogames retailer?
If you are, it means that you are probably struggling under waning physical videogames sales. With digital finally overtaking physical, how can videogame retailers defend their bottom line?
If you ever thought you could cling to hardware sales (consoles and peripherals), you know you have already forgotten the idea. With cloud gaming getting a solid foothold in the video games market, consoles will be gone forever as well.
Is there anything you, as a videogames retailer, can do about it?
There is always a way. To start with, do not miss the boat and get onboard the cloud gaming bandwagon. The cloud is replacing consoles, the same way subscription services are replacing one-shot purchases, but this fact doesn´t mean you must be left out of the fun.
Step ahead and distribute our cloud gaming turnkey box to your customers so they can convert their TV in a top gaming console at an affordable price. They will soon see the benefits of a plug&play solution that includes +50 top AAA games already available and growing every month (up to 100!). You can also offer a convenient subscription fee through prepaid cards and share our recurrent revenues.
Consoles are the past now, do not miss the chance to join in the videogames future. Get in contact with us asap to learn more about our cloud gaming solution for retailers.