Cloud gaming—game streaming—runs games on remote servers and streams video output to client devices, enabling play on low-spec hardware, TVs, and mobile devices without local GPU. Major services include GeForce Now, Xbox Cloud Gaming, PlayStation Now, and Google Stadia (discontinued). The technology requires low-latency encoding and transmission, adaptive bitrate streaming, and edge data centers proximate to players. Applications extend beyond consumer gaming to handheld consoles, mobile gaming, and real-time ray-tracing on thin clients. Commercialization is established; adoption varies by region and network quality.
The gaming industry faces hardware fragmentation and upfront cost barriers. Cloud gaming democratizes access: players can access high-end titles without expensive PCs or consoles. Challenges include latency—critical for competitive games—bandwidth requirements, and business model sustainability. Services have struggled with profitability; technical quality continues to improve. Cloud gaming represents a major shift toward streaming-first gaming, complementing rather than replacing local play for latency-sensitive titles.