Quick thoughts on Cloud Computing and Future of Video Games

With the emergence of video games technology into online delivery model, it is easy to see that Chinese market tends to be the most promising spot due to its impressive growth rate (rising from $10 billion dollars in 1998 to $20 billion dollars currently) and huge market size (338 million Internet users). The success of online delivery model is explained by extremely relaxed approach to licensed software in China.

I think projects like OnLive , that allow you to play almost all titles without downloads or install through micro-console or computer, could make a fortune in China (after they conquer North America), once local infrastructure is ready to support broadband gaming.

This could also force existing players like Microsoft Xbox, Sony Playstation and Nintendo Wii to re-think their current strategies and possibly adapt existing hardware to support services like OnLive, so they could manage their market share.