Many of the current services are likely running at a loss, hoping for the hype-train to get people into it.
The reality is, most people wanting to play AAA titles either have a console, or a gaming computer already
The cross-section of people with a 10 year old macbook, that want to play the latest AAA title, have expensive high-bandwidth internet, and are willing to pay ~$30+ a month is just not that large.
> The cross-section of people with a 10 year old macbook, that want to play the latest AAA title, have expensive high-bandwidth internet, and are willing to pay ~$30+ a month is just not that large.
This is frankly an idiotic summary of what you believe to be the cloud gaming addressable market.
Google is not a charity. If something is not working out financially, or the market has failed to grow at the pace Google initially thought, it is in their best interest to exit that market and re-allocate resources. You know... like any rational business.
> This is frankly an idiotic summary
Well then perhaps you can enlighten us on why the market has failed to materialize? $2.5B for 4+ industry-heavyweights to fight over is pathetically small.
The R&D costs alone to deliver this type of service likely outweigh several years of total industry revenue... yet each of these companies is trying to blaze their own path more-or-less independently.
In short, there is no addressable market, and the numbers clearly tell us that. Do not be surprised when more of the players exit this market as well.
Just because you love a service doesn't make it a reasonable or sustainable offering.
Correct, Google can't be trusted to commit to a product long-term. Even a product with paying customers.
> Well then perhaps you can enlighten us on why the market has failed to materialize?
Because like I said, it's a young market. It has absolutely enormous upsides for those that can win it.
> there is no addressable market
This is laughable. You're a clown.
> Just because you love a service
None of the cloud gaming vendors have ever even offered the service in my country. I have no dog in this hunt.
It's no wonder you're so upset.
You still cannot explain where the market is, or why the existing services are being forced to raise prices and cut hours already... but hey, you want it therefore you're owed it, right?
That's the TAM.
Think about it... exclusive access to a 4090 GPU for up to 5-8 hours a day for $18? Isn't going to happen. The electricity alone will cost more than that to operate over a month.
That does not even factor in a relatively expensive high-bandwidth internet connection that a lot of the world doesn't have... and you still need a device capable of consuming 1080p, 1440p, or 4K content in near realtime - ie. it still has to be a relatively capable system.
The economics are dubious, to say the least. Emerging markets without a lot of average household disposable income is probably where this type of service will excel - and even there we're already seeing price increases and cuts to maximum daily playable hours.
I believe they had to make concessions with the UK to somewhat outsource the cloud gaming aspect of the deal so that it could go through. This was something they didn't seem to want to do but also forced them to extend their merger & pay additional dividends to shareholders of Activision.