Why Service Providers Have Their Sights Set on Gaming

Why Service Providers Have Their Sights Set on Gaming

The gaming industry was one of the few sectors to not only survive but flourish throughout the pandemic. Confined to their homes, die-hard gamers had more time to dedicate to their hobby, while thousands of newcomers had nothing better to do than pick up a controller and dabble. This influx of activity resulted in the global gaming market growing by 23% in 2020, the highest annual growth rate in over a decade.  

While 2020 was a statistical outlier (for more reasons than one), this growth is expected to continue for years to come. Recognising this opportunity, many enterprises outside the sector are partnering with gaming companies to diversify and tap into previously unexplored markets. Let’s unpack why the telco industry is showing serious interest in the global gaming market and how providers can foster further gaming innovation and growth. 


Growth Industry  

By 2025, the global gaming market will be worth an estimated $256 billion, with users spending over $4.5 billion on games at the close of 2020. Telco providers have recognised this success, with some being savvy enough to invest in its potential.  

Investing in gaming enables telecom providers to be in on the ground floor of a rapidly expanding industry that is relying more heavily on innovative network solutions than ever. Gaming developers use telecom services such as cloud gaming and edge data centres to improve their service offerings and generate customer loyalty. By targeting developers in the sector, telecom providers can hitch their wagon to the gaming star and grow alongside the industry.  


Network Services Can Add Significant Value 

Providers and network services can help developers expand operations and facilitate an improved customer experience. Cloud gaming enables users to access a game without downloading it to their computer or playing through a specific device. Playing online through the cloud improves the gamer’s data security, negates the need to spend money on expensive consoles, and enables them to play with other users globally. 

Gaming companies can also use telecom services to reduce latency. Latency occurs when a user is too far from the server sending a receiving game data, compromising the quality of their connection. Developers can avoid latency by renting space in data centres to establish multiple Points of Presence (PoPs). By establishing a diverse network of PoPs in strategic locations, gaming companies can ensure that all users receive the same level of connection regardless of location. This improves customer loyalty and retention for gaming enterprises and generates more business for the data centre operator. 


Target New Customer Base 

With over 494,000 unique game streaming channels on YouTube, it’s clear that there’s no lack of demand or interest in the industry. By improving the gaming experience, service providers and gaming developers can create new ways to play and target more users. 

As said earlier, cloud gaming means that users can play on practically any device with an internet connection. This means developers can get their games in front of users that usually wouldn’t have the money to purchase a new PS5 or expensive gaming software for their computer. While edge data centres enable players in remote locations to access games and enjoy the same level of connection as players in cosmopolitan areas. Telecom services democratize the gaming experience and help developers to expand. 


Connect with Cloudscene  

Cloudscene is a free digital procurement platform that helps network buyers search, find and connect with telecom providers. Businesses can use Cloudscene to find network solutions such as rack colocationcloud connectivitycybersecurityethernetdark fibrewavelengthIP transit and internet access. 

Service providers can use Cloudscene to explore listings posted by game developers or connect with other vendors to expand their network and better service enterprises in the sector. You can browse Cloudscene to determine which services gaming companies create listings for (i.e., find out which network products they require) and update your offerings accordingly. For example, you might see that many developers search for colocation in the APAC; based on this, your team can strategically choose to launch a new PoP in the region to target this motivated customer base.  

Join Cloudscene today for free, or get in touch with our friendly team to learn more about the platform.