The Social Serendipity of Cloud Gaming - The a16z Show Recap

Podcast: The a16z Show

Published: 2020-11-16

Duration: 2334

Guests: Jade Raymond, Jonathan Lai

What Happened

Cloud-native games, exclusive to and solely playable within the cloud, represent a potential revolution in gameplay and storytelling. Unlike traditional games that are adapted for the cloud, these games are built from the ground up to leverage the unique capabilities of cloud infrastructure. One year after Google launched Stadia, this concept is gaining traction, with other players like Microsoft's xCloud, PlayStation Now, and Nvidia's GeForce also entering the arena.

Jade Raymond, VP of Stadia Games and Entertainment, and Jonathan Lai, formerly of Riot Games and Tencent, discuss how cloud gaming can eliminate download times and enable play across different screens instantly. This capability could solve games' cold start problem by supporting massive multiplayer interactions and real-time audience interactions that affect gameplay. These innovations suggest a shift in game design, requiring a reimagining of existing gaming paradigms.

The episode highlights potential new business models for cloud gaming, including arcade-style coin systems and ad-subsidized play. Additionally, cloud gaming could foster a marketplace for virtual goods using blockchain for unique, tradable items. This shift could lead to the emergence of an 'Internet of Experiences,' moving beyond text and video to more immersive, interactive content.

AI's role in cloud gaming is also discussed, with the potential for more dynamic storytelling and character interactions akin to those seen in 'Westworld.' AI can enable personalized gaming experiences that adapt to player actions and preferences, democratizing content creation and allowing for more user-generated content. This could lead to a significant transformation in how games are developed and experienced.

The concept of the metaverse becomes more feasible with cloud gaming, as it allows for more spontaneous social interactions and removes player concurrency caps, enabling vast shared virtual spaces. The first cloud-native games are anticipated to hit the market in the next year or two, gradually introducing cloud-native features.

The episode notes that 5G deployment globally is expected to enhance mobile gaming by supporting the streaming of 1080p HD video on mobile devices. Additionally, games are increasingly serving as social platforms, with virtual events like concerts and birthday parties in games such as Fortnite and Roblox indicating a trend towards virtual experiences that could surpass real-life events.

Jade Raymond mentions that the initial excitement around cloud gaming led developers to focus on ultra-realistic graphics and massive multiplayer games. However, the unique potential of cloud gaming requires a fundamental rethinking of gaming paradigms, rather than merely enhancing existing ones. This transformation is seen in recent gaming hits like Among Us and Fall Guys, which resonate with a new generation of gamers.

The episode concludes by discussing how games have become a part of pop culture and social currency, similar to music, especially among younger generations. Among Us, for instance, has attracted a diverse player base, including older adults and non-traditional gamers, demonstrating the broad appeal and potential for games to cater to various audiences and amplify new creators' voices.

Key Insights