Cloud Gaming Platforms: Their impact on the future of the video game industry
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How will cloud gaming platforms affect the future progression of the video game industry? In this thesis, I analyze how the implementation and further progression of cloud gaming platforms will affect the video game industry in the future, through exploratory research. By using desk research and historical data, this thesis aims to express the reshaping that the video game industry has been through from its invention to its current state, as well as its future prospects. Based on the framework of Porter’s five forces and Suarez’ battle for technological dominance, I have used a combination of both frameworks firstly to analyze the current state of the video game industry, as well as, the changes that will occur with the implementation of cloud gaming platforms. Secondly, the framework is then used to analyze how the different cloud technology, and the companies behind them, compete throughout its lifecycle to gain dominance in the industry. Porter’s five forces gives me the indication that the threat level in the industry will remain the same after the implementation of cloud gaming platforms. While Suarez’ battle for technological dominance shows that cloud gaming platforms are still in a too early phase to accurately gauge where it is headed. Aside from these two frameworks, there have also been conducted semi-structured expert interviews with software developers to get a better grasp of how the industry is reaction to cloud gaming platforms. By using the results of these frameworks and the expert interviews, I will then discuss three possible scenarios that could be the future outcome of cloud gaming platforms. A key finding in the study indicates that cloud gaming platforms have a promising future ahead where more companies are investing into them. This thesis contributes to existing literature by providing an overview of the current state and an outline of future prospect for cloud gaming platforms.