Bloomberg Intelligence's October 14 industry report predicts the cloud gaming market will reach $38 billion by 2035 and says traditional consoles may eventually lose their mass-market role as cloud gaming spreads. It argues AI makes games more complex and hardware demands higher, so running games in data centers and streaming them over the internet can meet demand better than launching a faster new console every few years. Analyst Nathan Naidu said AI data-center demand has pushed up compute prices but GPU supply may exceed demand by the late 2020s, improving cloud gaming operators' cost economics; Nintendo's cloud efforts are limited, Sony is relatively well placed with PlayStation Plus and PlayStation Portal, while Microsoft, NVIDIA and Tencent could gain from cloud infrastructure, with Xbox cloud gaming expected to hold about 40% share and roughly 220 million hours streamed in the quarter through September; he likened consoles to record players that survive for enthusiasts.

Bloomberg Intelligence·Nintendo·Sony·+5