Video game action heads for the cloud

The Redmond, Washington-based technology veteran has also invested heavily in machine learning.

“If you agree that the eventual future of games consumption is through cloud gaming services, then those companies with a strong position in cloud are likely to be best placed to benefit from the transition,” said IHS Markit games technology research director Piers Harding-Rolls at an industry event earlier this year.

Sony offers more limited cloud service through its Playstation Now, keeping game play within the confines of the console.

While streaming game services might nibble at consoles sales, they are more likely to broaden the audience of players to anyone with an internet connection, according to analysts.

“I don’t think this means the death of the console,” Pachter said.

“Publishers need consoles the same way movie studios need theaters.”

A question unanswered what business model will prove optimal for game streaming services.

“It seems to me that the right business model is iTunes rather than Spotify,” Pachter said.

“Let people ‘buy’ a game and stream it for as long as they want instead of forcing them to sign up for a subscription.”