Jeff Gattis, the head of gaming at Amazon, has suggested that the increasing expense of gaming hardware will likely push consumers toward cloud streaming services. As the price of consoles and high-end PCs continues to climb, Gattis believes many players will reconsider the necessity of owning dedicated gaming devices.

Amazon is currently working to expand the reach of its Luna cloud gaming platform by integrating it directly into the Prime Video application on Fire TVs in the UK and US. This move aims to tap into a broader audience, as Gattis noted that while there are billions of gamers globally, only a small portion possess specialized gaming hardware.

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Despite the potential for growth, the cloud gaming sector faces historical challenges. Previous attempts, such as Google Stadia, struggled to achieve widespread adoption before closing in 2023. Industry experts point to persistent hurdles, including the requirement for high-speed internet, latency issues, and consumer hesitation regarding subscription models versus traditional game ownership.

Christopher Dring, editor-in-chief of The Game Business, noted that while some players are deterred by the technical requirements of modern gaming, publishers remain wary of subscription models that might undercut the higher revenue generated by traditional sales. Meanwhile, NYU Stern professor Joost van Dreunen observed that while the industry is seeing consoles become more expensive late in their lifecycles, a mass migration to the cloud will likely be a gradual process rather than an immediate shift.

Source: BBC News