Mobile Gaming, 23 Milliards d’euros d’ici 2018 !

infog google vs apple 2018

Google versus Apple : les deux géants tirent le marché vers le haut et s’affrontent au travers de business models différents


L’économie des jeux sur les plateformes nomades est remarquablement efficace, et la concurrence qui s’exerce entre Apple et Google l’est tout autant.

L’App Store d’Apple et Google Play sont les deux principaux appstores du marché en volume d’applications disponibles et téléchargées.

On notera qu’en juillet 2014, ils comptabilisaient chacun plus de 1 million d’applications, loin devant Windows Phone Store, Amazon Appstore et Blackberry World. Aujourd’hui, ces deux appstores rassemblent à eux seuls  quasiment 80% des applications disponibles.

Les chiffres clés du marché mobile mondial à 2018

•    Le nombre de jeux mobiles dépasse de loin le nombre de jeux disponibles sur les autres plateformes de jeux,  offrant de nombreuses perspectives aux grands acteurs.

•    Le marché du jeu mobile s’élève à 12.8 milliards EUR en 2014. 72.6% de la valeur est générée par le jeu sur smartphone et atteindra vraisemblablement les 15 Milliards d’euros d’ici 2018

global mobile market generated by smartphone and tabletsDes modèles économiques innovants : Le free2play séduit de plus en plus de joueurs

Sur téléphone mobile, les 20 plus gros succès de l’année 2014 aux États-Unis sont des Free2Play. Ils étaient 18 en 2013.

•    Sur iTunes Store d’Apple, les jeux payants ne représentent plus que 8% du catalogue, contre 47% en 2012.

•    Le modèle Free2Play cohabite avec le modèle Pay-per-Download, mais le premier est bien plus répandu. Même les acteurs « historiques » du jeu vidéo investis dans le jeu nomade ou les « pure players » du jeu nomade ont passé le cap du Freemium, EA et Gameloft en tête.

Ce modèle a vocation à d’abord séduire le joueur avant de le faire payer. Une fois conquis, ce dernier paiera des objets virtuels en fonction de son attraction au jeu et de ses objectifs d’évolution à l’intérieur du jeu.

Pour retrouver toutes les informations concernant l’étude Mobile Gaming et les études associées, cliquez-ici

Plus d’informations sur l’expertises et les événements de l’IDATE sur :

www.idate.org          www.digiworldsummit.com          www.digiworldweek.com          www.gamesummit.pro


In 2015, the key words of the Mobile World Congress were 5G, IoT, virtualization and LTE-U : PART 2

image accroche article MWC part 2

IoT : The Internet of Things

Connected objects were everywhere and IoT is now becoming the Internet of everything.

Connected cars

Connected cars attracted a lot of attention with connected vehicles on most of equipment manufacturers’ and MNOs’ booths.
Renault’s CEO made a keynote where he presented the timetable for assisted driving. According to Mr. Carlos Ghosn, despite their numerous initiatives and some acquisition rumours, Internet giants are not rivals to car manufacturers but allies, as they consider electric cars and they help car makers to promote electric cars.
Ford had even its own booth presenting the electric vehicles (both passenger and entreprise cars) with dedicated solutions. In the meantime, Vodafone presented a Porsche Panamera model equipped with its new Telematics solution since the Cobra acquisition.

Smart home

Smart is also getting traction in the IoT space. In the “innovation city” hall (space dedicated to the connected objects), through the connectedhouseAT&T offering (Digital life) where the home could control through the smartphone and even through the connected car (equipped with an AT&T SIM card). When approaching the home, the car can trigger the opening of gate by itself for instance (pre-programmed distance).


Several watches and smart objects were also present on the different booths. Only AT&T provides cellular connected wearable on its booth, including the TIMEX and Samsung Gear S.

Alternative technologies

While 5G is already in the tracks, very low throughput network technologies are also under the spotlights. After the recent release of its 100 MEUR fundraising campaign among telecom operators, Sigfox was also on everyone’s lips at the MWC. Among the main new shareholders, Telefonica confirmed its strategic investment and its willingness to integrate the technology into its portfolio to address additional verticals and applications.


The GMA (Global M2M Association) also announced a strategic collaboration with Gemalto and Ericsson to provide a Multi-Domestic Service based on a single SIM (using the eUICC technology) helping global enterprises (chiefly from the automotive and consumer electronics segments) capitalize on the growth of connected devices.

Growing market but still key challenges though

During his keynote, if AT&T Wireless CEO predicted that the smart phone will be the remote control of everything in the next few years, he also pointed out the key challenges to address in order to make the IoT market grow significantly:
•    Security
•    Privacy concerns
•    Effortless (ease of use)


privacylogoData about devices and their users is generated in real-time, often by default and without the user being aware or having choice (especially for free apps). There is a need for a different approach to giving users transparency, choice and control over their data and privacy.

Generally user has a single choice : accept or not using the service, there should be gradual approach (like sharing some id attributes but not all of them).
Privacy could be a competitive stick for service providers, as users are becoming more aware of privacy.

Facebook in emerging countries

fbFacebook has launched Facebook zero in partnership with mobile operators (Millicom, Telenor, Airtel): data use is free for a limited period, and after that operators can charge data.

•    Airtel: “Operators and Facebook are like the beauty and the beast, but the beast (facebook) is becoming more human nowadays”.  Airtel was reluctant to introduce Facebook because of VoIP threat. Is looking at it like the “boiling milk”.
•    Millicom, Telenor: have seen ARPU rise thanks to facebook launching, very promising for them.
•    Wikipedia has the same approach of “Wikipedia zero”, dealing with operator to provide data access for free.

Financial inclusion

Banks, such as Master Card, provide a global and interoperable solutions. Those systems needs public-private partnerships. Hong Leong Islamic Bank Berhad has launched a solution in Malaysia.

More informations about IDATE's expertise and events :

www.idate.org      www.digiworldsummit.com      www.digiworldweek.com


Nouveau cycle de conférences de prospective numérique sur les enjeux de l’Internet, de la télévision et des télécoms à 2025

logo DWFuture generique 2015

A l’occasion de la sortie de la nouvelle édition de son DigiWorld Yearbook, l’IDATE présente son nouveau cycle de conférences de prospective numérique sur les enjeux de l’Internet, de la télévision et des télécoms à 2025 !

La première session DigiWorld Future  se déroulera le 16 juin au Palais Brongniart, à Paris,  dans le cadre du Festival Futur en Seine en partenariat avec la Ville de Paris et Cap Digital.

A partir des analyses des experts de l’IDATE, les débats seront animés par Marjorie Paillon, Journaliste, Tech 24, Philippe Escande, Rédacteur en Chef, Le Monde et Gilles Babinet, avec les contributions exceptionnelles de :

sebastienbazin lowaxellelemaire lowMaurice Levy lowfrederic mazzella lowrichardstephaneOROUSSAT low














Internet Services: where is the value?


Head of Internet Business Unit at IDATE

The Internet services industry is often perceived as a world of completely free services (and thus implicitly low quality), where everything is supported by advertising. In reality, the situation is obviously more complex. The majority of Internet services revenue comes from paid or transactional services, and the proportion of advertising revenue is trending downward (see Chapter 2, Internet markets) with the development of new services around mobile, cloud computing and even social networks, which rely more and more (at least partly) on paid solutions.

A low-cost approach to services?

Many services are actually offered in freemium versions, with a basic free version (often ad-supported) and a more premium paid version. Spotify and Deezer use this model for online music distribution, and Dropbox and similar services use the same for cloud computing. The goal is to establish a large user base by offering free services, and to then use this base as a lever to attract users to the paid services. The associated marketing costs are therefore next to nothing. The bestperforming players are managing to convert almost 15% of their user base to the paid versions.

Even paid services providers (including freemium models) are adopting low-cost pricing strategies, which breaks with traditional pricing models (like Skype for VoIP, Netflix for SVOD, Amazon for e-commerce and PayPal for payments) and thus undermines traditional service providers. However, this does not mean that Internet players never offer premium services.

Telco and OTT provider revenue in Europe's 5 biggest markets

Premium services still exist on the Web

Where monetisation and value creation of Internet services has seen the most success is when providers have used an approach that combines lower-cost pricing and premium services aimed at the end user and/or third parties (such as merchants, advertisers and developers). It is often the functionality offered to the user rather than the price that is premium, especially in terms of customer service (Amazon), scope of the service, account management and device support (Netflix), decision support, ease-of-use (PayPal). Most players also rely on a two-sided approach.

The service offered to third parties who connect with or capture data from users is premium. The price per unit for this is often moderate, too. But the service is very attractive for advertisers and merchants in such terms as quantity and quality of available data, ease of implementation, value-added services, targeting capacity. Advertisers are always willing to pay more for advertisements to reach the most attractive targets. The CPMs are therefore much higher on financial information sites. It is, then, ultimately data, and personal data in particular, that constitutes the premium resource of the Internet.

How top internet companies are positioned

Premium services need advanced tools

To effectively implement premium services on the Internet (and consequently data management and processing), most players are investing heavily in infrastructure for both hardware and software. Major Internet players are positioning themselves around essential technological cornerstones, such as data centres, the Cloud, browsers, operating systems and even devices themselves, or specialized solutions such as DRM. They are implementing their own solutions and developing proprietary approaches if necessary, even offering their resources to third parties (such as Amazon Web Services, Google Analytics, Facebook Connect). Google invests almost one billion USD per quarter in infrastructure.

Advanced software solutions are also central to many Internet players’ activities, particularly around data processing and analysis, which is the focus of the recent growth of big data (see the Big data section in this chapter). Google is therefore indirectly behind the current reference service Hadoop, which derives from Google’s MapReduce.

Averageannual per-user revenue for digital content

Premium Internet services involve platform development

Premium services also require vast amounts of data to be collected. This data capture can be direct (via user tracking),declarative or from various sensors. It can also come from third parties through agreements (possibly via their API).

This has pushed most of the major players to develop platforms capable of collecting data from third-party services. This platform links users of the Internet player’s service with developers, merchants and advertisers who want to connect with a wide audience, with varying levels of targeting. It is therefore an essential intermediary tool. To increase interest in their platform, the major Internet players are also keen to offer a part of their infrastructure and devices (Nexus, Kindle Fire) at low costs, despite their relatively premium specifications.

About the Digiworld Yearbook

While digitisation will bring more growth to certain developed markets, the next decade will show a marked decline in linear television revenue in the video sector, and a corresponding increase in new on-demand services. For the incumbent audiovisual operators, their capacity to generate revenue from these new services will dictate whether they can sustain their levels of turnover. They will, for all that, only find growth opportunities in emerging markets.

digiworld yearbook 2013
197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.

the DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

The 2012 edition can be downloaded for free
The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT


  • You can have a look at the digiworld yearbook 2013, purchase it or even download the 2012 version for free at : www.digiworld.org/yearbook/

Telcos vs OTT: Cloud Markets

Julien GaudemerJulien GAUDEMER

Consultant at IDATE

Opportunities for telcos: Personal Cloud, IaaS, PaaS and SaaS

The cloud computing market is currently growing at a significant rate, on both the consumer and business sides.

The Software-as-a-Service (SaaS) segment, which provides software services online through a Web interface, is the most important cloud segment. Infrastructure-as-a-Service (IaaS), which provides on-demand calculation and storage capacities online, is the second market segment after SaaS, but it should reach the SaaS level in 2016, with IaaS and SaaS each representing just short of one-half of the market. Platform-as-a-Service (PaaS), where on-demand servers are dedicated to application trials and rollouts, represents a marginal share of the overall cloud computing market, but is usually bundled with SaaS or IaaS, in order to attract developers and generate more revenue on SaaS or IaaS.

Globally speaking, it is the large OTT players that are leading on the cloud
computing markets, while telcos do have a role to play.

Dropbox, Apple and Google are the leading personal cloud providers, whereas Salesforce.com, Google and Microsoft lead on the SaaS market. Amazon is one of the most-used PaaS and IaaS providers. Telcos, in contrast, only entered the cloud computing market a few years ago and later
than the OTT players, and have remained marginal - but they do have several parts to play. In fact, they may especially have a competitive advantage at the local level, where they can benefit from a local commercial presence, contrary to many OTT players.
Moreover, most telcos have now rolled out data centres in a majority of countries, with major investments. Thanks to their network, they can claim to have an end-to-end approach to guarantee the continuity and Quality of Service. This aspect is not a key issue for most customers who may be more interested in the data protection ensured by a local provider. As such, telcos have the infrastructure required to provide IaaS products, or can be helped by third parties, whether companies that they have acquired, as with Verizon and Terremark, or a partnership with a IaaS pure player, as Telefónica has established with Joyent. Besides, telcos also provide communication-based SaaS that most OTT
players cannot at this scale, with elements such as unified fixed-mobile communication or video conferencing. On the personal cloud market segment, most telcos currently provide storage service bundled with mobile or fixed rate plans, as a way to limit churn and generate indirect revenues.

Positioning of some telcos on cloud services

Telco cloud services (IaaS, PaaS, SaaS, Personal) positioning (Absent, Minimalist, Opportunistic, Determined)

Source: IDATE

To consolidate their position on the cloud computing market, telcos should develop partnerships with a diversity of cloud players.

Such partnerships could position telcos as intermediaries for providing cloud services, in a variety of ways. Firstly, telcos can get help from white label providers in order to provide cloud services with a faster time-to market. Rackspace, for instance, provides a white label telco cloud that consists of a preconfigured cloud base for quick rollouts of various cloud services. Second, telcos can be involved in the cloud computing market as a 'cloud broker’. In the SaaS segment, telcos are not usually product leaders: providing a SaaS marketplace could enable telecom operators to become key players by aggregating various products from multiple providers. Such a concept is particularly interesting as telcos can target a large range of customers that OTT players cannot necessarily reach. A word of caution: marketplaces are not only provided by telcos. OTT players, despite pushing their own services, also provide marketplaces, in particular PaaS leaders such as Microsoft or Salesforce. Furthermore, a partnership with infrastructure providers may help telcos to provide a strong IaaS offering, much like Verizon and Terremark or Telefónica with Joyent. In the personal cloud segment,
partnerships with OTT pure players can also be considered: SFR bundles free extra Dropbox storage in some of its mobile rate plans, as does NTT DOCOMO with Evernote.

This is an excerpt of our insight Cloud Markets" being a part of our ongoing monitoring service Telco vs OTT watch


DigiWorld Summit 2012

DigiWorld Summit
"Game Changers: Mobile, Cloud, Big Data"

Opening day of the 34th Summit: The future of the digital economy according to its leaders

This morning IDATE Chairman François Barrault opened the 34th edition of the DigiWorld Summit in Montpellier. The Summit has become one of the must-attend events each year for playmakers in the telecom, Internet, television and video game industries. It will bring together more than 1,200 participants and 130 speakers from over 20 countries around the world.

IDATE and the members of the DigiWorld Institute are putting the spotlight on “Game Changers: Cloud, Mobile, Big Data” for this year’s Summit. The objective of the event is to discuss the factors that will lead to the emergence of the next decade’s digital leaders.

Executives from device and cloud heavyweights as well as content providers and telecom operators will present their views on these subjects over the next two days.

John Chambers, CEO of Cisco, affirms that the pace of innovation today is the fastest it has been in the past 25 years.

Hans Vestberg, CEO of Ericsson, stresses the need to combine a strategy of vertical integration and openness to “capture the innovation of other players.” For Ben Verwaayen, CEO of Alcatel-Lucent, Europe should speed up LTE rollouts despite the economic uncertainties. Qualcomm Chairman Paul Jacobs, riding high on the success of the firm’s technology, which is used in many smartphones and tablets, predicts a “sixth sense, in that everything will be connected around us.

In addition to such distinguished speakers, the DigiWorld Summit is also recognized for its detailed preparation of the themes and the series of sessions based on IDATE analysis. During the opening session the Institute’s experts will each present an overall analysis of their focus sectors. They will highlight the dominant role of three game-changing factors applicable to all the links in the value chain:

  • Mobile’s irresistible momentum, with the battle of the OSs and then LTE, which is expected to be central to the new differentiation strategies to break out of the price wars.
  • The Cloud, which for IDATE is not limited to externalized enterprise computing (“cloud computing”) but includes application distribution architectures (including for audiovisual content), shaking up traditional roles.
  • Big Data, an asset that all players will be looking to capitalize on through real-time applications, aiming to enhance their services and offerings (devices, content, connectivity services, storage and application platforms, etc.).

Three important voices offer a counterpoint to IDATE’s analyses: Ben Verwaayen, the boss of Alcatel-Lucent, Léo Apotheker, former chief of SAP and HP, and Carsten Schloter, CEO of Swisscom. Overall the messages converge, with all three insisting on one point: Europe has a lot going for it. However, these pluses are particularly concentrated in the telecom industry, which is currently suffering multiple ills: the economic situation, its relative disintegration and the constraints of a world where traffic is exploding but applications tend to lean in favor of over-the-top (OTT) players.

The sessions on November 15 will be devoted to sketching a potential next-generation telco. Presenters include Terry Denson, Vice President of Global Strategy for Verizon, Stéphane Roussel, CEO of SFR, Jean-Ludovic Silicani, Chairman of ARCEP. The heads of Ericsson and Orange, Hans Vestberg and Stéphane Richard, will close the debate. Some big names in traditional content (the BBC) and new online platforms (like Netflix) will also be present. A conclusion will be given by players that hold promising futures in platforms with IBM, Amazon, BT and Cisco.

Also note that five executive seminars will be presented on November 14 and 15, on the following topics:

  • Impacts on privacy, with the input of Google and CNIL.
  • Key issues for next-generation networks: FTTx, LTE, etc.
  • Expectations surrounding the rise of smart cities.
  • Perspectives related to the concept of smart TV.
  • New business models for video gaming.

> Follow live the plenary sessions: Live streaming DWS12 !!!

> More information about our program and our speakers on the website DigiWorld Summit 2012


DigiWorld Summit: Discover our speakers!

DigiWorld Summit
"Game Changers: Mobile, Cloud, Big Data"

Smart Devices ecosystems vs. Open cloud

Smartphones, and to a lesser extent set-top boxes, have in recent years been viewed as strategic components for disseminating innovation, sharing value and structuring digital ecosystems. Are operating systems and store apps going to retain this strategic character in the era of HTML5 and Cloud Computing? Are we going to see the distribution models for smartphones and set-top boxes coming closer together?

> More information on the website DigiWorld Summit 2012.

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DigiWorld Summit: Discover our speakers!

DigiWorld Summit
"Game Changers: Mobile, Cloud, Big Data"

Game Changers, Global introduction

IDATE experts will launch the conference detailing the program and introducing the questions that will be debated during the different sessions.

François BARRAULT, Chairman - Yves GASSOT, CEO - Vincent BONNEAU, Head of Internet BU - Gilles FONTAINE, Deputy CEO - Frédéric PUJOL, Head of Mobile Practice

We have also invited ten or so executives from the largest companies in our sectors to share their opinions of the Game Changers in short video interviews before the sessions begin…


Three of the digital market leading figures will be present at the Summit to respond to IDATE's analyses and to the interviews of key personalities.

> More information on the website DigiWorld Summit 2012.


DigiWorld Summit 2012

Christine BARRE

Christine BARRE

Responsable DigiWorld Summit, DigiWorld by IDATE


A l’approche du DigiWorld Summit 2012, l’IDATE livre son analyse de la situation de l'économie numérique européenne

A l’occasion d’une conférence de presse organisée à Paris ce jour, le DigiWorld Institute by IDATE a livré son analyse de l’avenir de l’Europe des Télécoms et de la Télévision.

Quelques mois après la publication du DigiWorld Yearbook et quelques semaines avant le DigiWorld Summit, le DigiWorld Institute by IDATE, Institut spécialisé dans le domaine des télécommunications, médias et Internet, livre son analyse de la situation de l'économie numérique européenne à travers la situation exemplaire des secteurs des télécommunications et de l'audiovisuel. Cette conférence a également été l’occasion de présenter le programme du prochain DigiWorld Summit. Alors que la dernière édition du DigiWorld Yearbook avait été l'occasion d'attirer l'attention sur l'accentuation des faiblesses de la zone, le DigiWorld Institute by IDATE revient sur les grands enjeux auxquels l'Europe de la télévision et des télécommunications doit faire face.

Télécoms et Télévision européenne : Le point de basculement ?

Côté Télécoms, Yves Gassot, Directeur Général de l’IDATE, affirme : « Après avoir globalement réussi l'introduction d'une concurrence effective favorable au consommateur et dans une certaine mesure à l'innovation, l'Europe doit prendre en compte la situation inquiétante du secteur ».

Cela se traduit notamment par :

  • une récession qui s'accompagne d'une pression sur les marges et l'investissement, à un moment où il faut accélérer les déploiements des réseaux fixes et mobiles à très haut débit et supporter l'explosion des trafics,
  • un contexte peu favorable pour définir de nouveaux business models, lesquels sont pourtant indispensables pour répondre aux challenges lancés par des géants de l'Internet,
  • une difficulté pour progresser vers un "single European market" tandis que s'accélère la consolidation aux Etats-Unis et que s'affirment des opérateurs de taille mondiale à partir des économies émergentes.

Côté audiovisuel, pour Gilles Fontaine, Directeur Général adjoint de l’IDATE, « ce serait une erreur de sous-estimer les points forts de l'industrie européenne ». En effet, la part de marché des chaînes de télévision et des distributeurs reste élevée alors que la production cinématographique est, dans une certaine mesure, le garant, d'une création autonome originale. Cependant, compte-tenu du poids des studios hollywoodiens, il serait illusoire de vouloir construire ex-nihilo un ou des champion(s) européen(s) des nouveaux services vidéo. La dissociation des droits « à la demande et linéaires » favorisera en effet les services nord-américains. Ce sont les raisons pour lesquelles il apparaît indispensable de favoriser une gestion des fenêtres, intégrée au sein des groupes de télévision dans un contexte où la SVOD est l’outil d’entrée des chaînes en clair sur le marché du péage.

Si les marchés de la télévision vont encore rester nationaux, une certaine internationalisation est cependant possible, voire indispensable. Pour cela, il faudra réviser le rôle respectif des chaînes et des producteurs dans la production de télévision (et non de cinéma). Par exemple, il faudrait également étudier la possibilité de lancer une chaîne jeunesse publique européenne disposant d'une base commune aux différents services publics européens.

DigiWorld Summit 2012 : Quelle place pour l'Europe au moment où l'émergence d'un nouvel ordre économique numérique mondial se met en place ?

Durant cette conférence, François Barrault, Président de l'IDATE, a présenté le programme du prochain DigiWorld Summit 2012. Ce sommet abordera le contexte mondial d'évolution des différents maillons de la chaîne du numérique avec des sessions plénières de haut niveau traitant des Smart Devices, des industries du contenu, des telcos et des plates-formes, des villes numériques,…

Le DigiWorld Summit est un rendez-vous incontournable qui permet de prendre la mesure des enjeux économiques et stratégiques pour les acteurs du secteur. Seront abordés des thèmes clés à travers une série de séminaires portant sur :

  • Les Villes numériques
  • Les contenus dans le Cloud
  • Les réseaux de nouvelle grenaison (fixe et mobile)
  • Big Data et protection des données personnelles

Le DigiWorld Summit est également l’occasion de mettre en avant le potentiel exceptionnel du territoire au cœur duquel cette conférence se tient depuis sa création :

  • Les jeux vidéo seront à l’honneur durant une journée complète de conférences et de rencontres professionnelles organisées en partenariat avec le Montpellier in Game, événement que Montpellier Agglomération propose pour la troisième année consécutive.
  • Les entreprises et start-up innovantes seront mises à avant à l’initiative de La Région Languedoc-Roussillon qui organise des rencontres B2B au travers du Networking by Sud de France Développement

Le DigiWorld Summit en bref

  • Plus de 1400 participants attendus
  • Plus de 130 intervenants
  • Les présentations des analyses des consultants de l’IDATE
  • Plus de 20 nationalités représentées
  • Des sessions plénières de très haut niveau et 5 séminaires et conférences spécialisés
  • Une sélection d'une trentaine d'exposants proposant des démonstrations et présentant leurs innovations

De très nombreuses occasions de networking durant une soirée d’ouverture à l'Opéra Comédie et une soirée de gala exceptionnelle sur le site d'IBM

> Découvrez le nouveau site internet du DigiWorld Summit 2012


Cloud Gaming


Laurent Michaud

Head of consumer electronics & digital entertainment, IDATE


What will change for the video game industry

Recently, IDATE has published its in-depth study of Cloud Gaming. The gaming industry has been gradually making the shift to digital over the last decade and cloud gaming is the next step in the process. This study examines the challenges facing the industry-wide and commercial deployment of cloud gaming in terms of technology and services. It also identifies the major industrial challenges across the value chain and the growth engines that will encourage development of this new market segment.

Cloud gaming: Another step forward in the game industry’s shift to digital

For 40 years, the video game sector has been considered a market with two distinct yet interdependent sides:

  • the hardware side, which is subject to Moore’s law and governed by a life cycle characterized by the integration of:
    • innovative technologies in the video game sector promoting innovation in gameplay,
    • features related to video games that can target an audience beyond just gamers,
    • service and consumption innovations related to the game sector but also to building user relationships;
  • the software side, which is wholly dependent on the equipment side, from design and development to distribution and consumption.

Beginning in the 2000s, online gaming practices and digital distribution began slowly taking over market share. Ten years later, this share continues to grow, today representing more than half of the revenue generated by this sector. Every single market segment in this industry is affected by the digitization of practices and distribution, from home consoles and handheld consoles to smartphones, tablets and connected TVs.

In this context, cloud gaming represents another giant step forward in the game industry’s transition to digital distribution. Sony Computer Entertainment’s purchase of Gaikai demonstrates—and may even strengthen—cloud gaming’s role as a disruptive technology.
Cloud gaming may eventually eradicate (or at least mitigate) this hardware/software division by limiting the impact hardware has on gaming software. In other words, with cloud gaming, video games are likely to become less and less dependent on the device they are being played on. At the same time, we should begin to see more and more game accessories on the market because the accessories are quickly becoming the key element in providing users with the best immersive and interactive gaming experience possible.

With that in mind, IDATE has identified a number of challenges related to cloud gaming’s deployment and commercial success in the video game market. These include technological challenges related to network infrastructure, bandwidth, latency and remote computing and processing; and challenges related to services, their business and pricing models, the need for cross-platform and ubiquitous services, and their user-friendliness, especially on connected TV, where video games seem to have great potential (especially when they are tied in to TV programs).

Finally, IDATE has identified ten market challenges across the value chain. These challenges also represent growth drivers for this new market segment and will affect many players—not just cloud gaming service providers (CGSPs), but also game developers of all genres, AAA and casual game publishers, distributors, physical and digital retailers, console manufacturers, consumer electronics manufacturers, peripheral manufacturers, major Web players, TV channels and telecommunications operators.

Laurent Michaud
Head of consumer electronics & digital entertainment, IDATE

> More information about this study available on our website