Why gaming companies are moving to the cloud
Experts Voice
17 June 2019
Why gaming companies are moving to the cloud
Experts Voice
17 June 2019

Why gaming companies are moving to the cloud

Why gaming companies are moving to the cloud

Gaming companies have been promising players that soon they’ll be able to open and play their games on any device at any time. These organizations are making the shift from delivering betting games via fixed machines to cloud-based systems. With cloud storage, casinos and makers of betting games can target new audiences and keep current players engaged in ways they never could before. So far, they've seen considerable success; by the end of 2016, the global online gambling market was worth over $45 billion. Experts expect it to reach nearly $100 billion by the end of 2024, growing at a rate of over 10% each year. 

Here are a few reasons why they’re making the jump.

1. Greater cost effectiveness

Traditionally, in order to stay on top of the market, a game needs to launch across a number of platforms. This requires the game to be coded for various platforms, which takes time and money. 

Not only does this make these games more cost-effective for the company to produce, but it also makes it more likely a player will play, due to greater accessibility. So far, this accessibility appears to have contributed to its growth as well, with the UK, Malta and the Asia Pacific region being the primary contributors to the industry's rapid growth. 3 states in the USA had legalized online gambling as of March 2017, and more are expected to follow suit by 2020, which is likely to accelerate its geographical expansion.

2. Easier updates

Game companies of all types are looking more often at micro-transactions to extend the life cycle of releases. Under this model, 

rather than all at once. By managing these releases from the cloud, these smaller updates can be made available instantly on a scheduled cycle, keeping players engaged and excited about new content. While some may worry about the security risks of frequent updates, experts say that the extensive verification processes used in cloud and other forms of online gambling actually make it more secure than gambling at many physical casinos.

What is more, if a particular game isn’t getting much play in a casino, cloud storage allows for the game to be easily swapped out for another. This isn’t possible with traditional one-game machines, which can lead to dead space on the casino floor.

3. Convenient in-game purchases

Engaged players are repeat players — and repeat players spend more money. With cloud gaming, 

These easy in-app transactions encourage players to continue playing where previously they may have instead simply stopped and walked away.

With streaming and cloud services becoming the norm for movies and television, it’s no surprise that gaming is next. As networks expand and data transfers become faster and more stable, the reason why gaming companies want to take advantage is clear. While cloud gaming may not be the entire future of gambling, it will certainly play a large part in casinos and other aspects of the industry for years to come.

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