Game streaming can never be a viable replacement for local processing, as Gabe Newell made the case at DICE. The main point the Valve boss makes is that cloud gaming is not a technology that can scale. Ironically, its success would be its undoing. Another hurdle would be lag-sensitive hardware.
“Cloud gaming works until it starts to be successful – at which point, it falls over,” Gabe Newell said. “All the spreadsheets ignore the producing levels that consumer networks use. When everyone starts using a continuous network connection in order to get their applications, prices are going to go through the roof.”
“Let’s say our industry had never done consoles or consumer clients. Even if we just started out with cloud gaming, you’d actually go in the direction of pushing intelligence out to the edge of the network, simply because it’s a great way of caching and saving you on network resources.”
Source Rock, Paper, Shotgun
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