"As hardware becomes more expensive, and as streaming technology continues to improve, I think you'll naturally see more people asking whether they actually need that dedicated device." That is the prediction of Amazon's head of gaming Jeff Gattis, who told the BBC he believes the rising cost of tech will drive players to stream games online rather than buy new consoles.
Cloud gaming – which allows users to stream and play games from a remote server using a phone, tablet or controller – has long been billed as the future of the industry, but previous efforts have failed to gain widespread adoption, leading to the high-profile closure of Google Stadia in 2023. While giants Sony and Microsoft already offer cloud gaming as part of their subscription services, consumers continue to favour installing games on their own machines.
“Amazon gaming boss Jeff Gattis predicts rising hardware costs will drive players to stream games rather than buy consoles.”
Gattis acknowledged that some people will still buy their own hardware, but argued there was a huge untapped audience beyond traditional console owners. "There are somewhere between two-and-a-half and three billion people who play games around the world, but only a fraction of those own dedicated gaming hardware," he said. Streaming, he added, could help those who do not want to spend hundreds – or even thousands – of pounds on a console or gaming PC.
His comments come as Amazon announced it is integrating its cloud gaming service Luna into the Prime Video app, placing it alongside its shows and films under a new "Games" tab. The service is already included with a Prime subscription, but previously existed as a separate destination; now users on Fire TVs in the US and UK will be able to access it directly from Prime Video.
Recent years have seen the price of gaming hardware climb as the cost of components rises. Sony and Microsoft have both increased the prices of their consoles, while Valve priced its new Steam Machine from £879. Christopher Dring, editor-in-chief and co-founder of The Game Business, said there was likely an audience of people looking to play high-end games like the upcoming Grand Theft Auto 6 "but are put off by all the technical requirements". He noted that streaming still faces obstacles, including the fact that many high-end games still require a controller. Dring also said the sticking point for many big games publishers may still be the subscription model, due to the impact it could have on traditional sales.
The coming years will test whether cloud gaming finally reaches a tipping point, as hardware costs rise and streaming technology improves.