Google Stadia vs. Microsoft xCloud: Why Game Streaming Won’t Work Just Yet

Game companies have touted game streaming as the next big thing when it comes to gaming, but it probably won’t be -- at least in the next few years. A report explains why.

Big tech companies like Microsoft and Google have been touting their plans for gamers all over the world, namely the so-called Project xCloud and Stadia, respectively. Other companies like Samsung and Sony have their offerings, too, showing the world where gaming could be headed in the near future.

CCN Markets, however, believes that xCloud and Stadia, along with other game streaming services like Samsung’s PlayGalaxy Link and Sony’s PlayStation Now, could be “dead on arrival” when they are launched. Why is this? Here are some reasons.

There aren’t that many gamers

While game streaming platforms like xCloud and Stadia are envisioned to bring gaming to people all over the world, it’s a fact that they will require very fast internet speeds for them to work. Sadly, not all countries have that.

According to a 2017 Akamai study, only a few countries offer average internet speeds Google requires for Stadia to run properly: 20Mb/s and above. Only the gamers living in these countries (South Korea, Norway, Hong Kong, Sweden, Switzerland, Finland, Singapore, Japan, and Denmark) will be given the chance to enjoy game streaming services.

Pricing matters

Next, those who can actually afford to pay for very fast internet speeds needed to run game streaming services can just choose to buy pricey consoles. Conversely, some who can’t afford to shell out cash for a game console won’t be likely to afford to pay for high-speed internet which is often expensive.

Google will charge $9.99 per month for Stadia. Sony will charge $19.99 a month for PlayStation Now. The monthly streaming costs, added to monthly internet bills, are likely to turn poorer players off. These are also likely to turn richer gamers off and cause them to purchase gaming consoles and high-end PCs instead. Some countries might offer mobile data at low prices, but these won’t be enough.

The Democratic Republic of Congo might sell 1GB of data for as low as $0.66, but this won’t be enough to allow players to enjoy playing games longer. Stadia, for example, uses 4.5GB of data per hour on the lowest setting. This means gamers from that country will need to shell out nearly $3 per hour, which increases the longer they play.