What is cloud gaming?

Cloud gaming is a sub-category of cloud computing. Much like movies and series, games can be streamed to the user's device to play back the content. Learn more about cloud gaming, its technical back­ground, ad­van­tages and dis­ad­van­tages, and the best cloud gaming providers on the market.

This article was last updated in September 2021.

You’ve probably heard the phrase “storing something in the cloud” before. It typically refers to data that’s stored outside of one's computer or home network on an online storage device. The same is the case for cloud gaming. Here, games are streamed directly from a data center of the cloud gaming provider.

Per­for­mance-intensive games are run on external data center servers, so that players do not require their own powerful hardware. Audio and video signals are streamed via the Internet. The inputs made by the player via mouse, keyboard, gamepad, or other pe­riph­er­als take the reverse route via the broadband line.

Cloud gaming is still a com­par­a­tive­ly young tech­nol­o­gy for gaming on PC or consoles, and not yet a fully-fledged al­ter­na­tive for video gamers. Until now, video gamers purchased games either phys­i­cal­ly or digitally, installed or down­loaded them, and in that way gained permanent access –subject to reg­is­tra­tion via an online account such as Steam, Origin, or Ubisoft Connect. This has the advantage that single-player content can be played offline, which is usually not possible when streaming games via the cloud.

• Project xCloud/xBox Cloud-Gaming
• Google Stadia
• PS Now
• GeForce Now

The most important pre­req­ui­site for a smooth gaming ex­pe­ri­ence via cloud gaming is a stable Internet con­nec­tion with a high bandwidth. The average data through­put required depends on the re­quire­ments of the in­di­vid­ual games. As a rough guideline, it’s best to choose a rate that is above a bandwidth of 75 Mbps.

In addition to technical re­quire­ments, cloud gaming requires the ap­pro­pri­ate hardware. This can be a PC or a laptop. But also a game console, such as the PlaySta­tion 4, which is suitable for Sony's streaming service PS Now. Android devices such as smart­phones or tablets are also suitable for remote gaming. Cloud gaming providers will usually specify the end devices they support.

With cloud gaming you do not require a high-end gaming PC or a modern gaming console to display games in their full graphic glory. This is a major advantage of streaming games via the Internet and elim­i­nates the often trou­ble­some retro­fitting of system com­po­nents or having to purchase a new computer. Cloud computing saves money in that way.

Although consoles are generally long-lasting because of the long lifespan of in­di­vid­ual gen­er­a­tions (for example: PlaySta­tion 4: 2013-2020), even­tu­al­ly the hardware tends to be updated. As long as you have a good Internet con­nec­tion, you won’t need to worry about system re­quire­ments, driver updates, com­pat­i­bil­i­ty issues and updates with cloud gaming. The provider usually takes care of these aspects.

Another advantage is that your hardware is less strained and devices tend not to run as hot and require less cooling. Not only does this protect the tech­nol­o­gy, but also the human ear.

Cloud gaming proves to be a storage paradise.

For one, you won’t need to worry about your available hard disk(s) space. There’s no need to check if your hardware storage is adequate or even uninstall a game to free up space for new ones. No matter how high the storage re­quire­ments are, when it comes to cloud gaming, storage is up to the provider.

Secondly, players can store games and profiles directly with a provider which helps avoid loss of saved files. In addition, game progress status can be viewed on any device as soon as you log in with your account.

Moreover, gamers are no longer tied to a single location when using cloud gaming. Assuming a stable Internet con­nec­tion, you can play games whenever, wherever without having to take your PC or console along.

Another advantage of cloud gaming is the time saved. Because games are installed and updated by the provider, you won’t have to spend any time down­load­ing files or in­stalling and updating them. Cloud gaming offers the classic “plug & play” ex­pe­ri­ence. This advantage is par­tic­u­lar­ly no­tice­able with larger games.

The biggest dis­ad­van­tage of cloud gaming compared to con­ven­tion­al gaming is its de­pen­dence on an Internet con­nec­tion. As long as your con­nec­tion is stable, you can ex­pe­ri­ence cloud gaming to the max. Problems may arise on slow con­nec­tions, because slow data transfer rates can result in stutters, lower res­o­lu­tion, and heavily offset rendered inputs.

Another major dis­ad­van­tage of cloud gaming is that games aren’t bought for long-term use, but are licensed for a limited period of time. Providers tend to expand and change their offering regularly. As such, there is no guarantee that in­di­vid­ual games will remain part of their catalog. If the service provider wants to remove a game from their catalog or does not want to renew its license, players have to contend with that fact.

Another dis­ad­van­tage concerns the offering, which can vary greatly from one provider to another:

• Mi­crosoft­'s Game Pass contains a large number of current games and it promises to include upcoming high­lights at or shortly after release. However, this is the exception.
• Sony's offer, for example, is still rel­a­tive­ly small. However, it includes a series of older exclusive titles.
• Google Stadia or NVIDIA-owned streaming service GeForce Now fails to impress – neither through the number of available games nor updates.

Con­sid­er­ing that both Microsoft and Sony cover the financing of their consoles by selling games, mostly exclusive titles, one may be able to roughly forecast the extent to which new releases will be available directly via cloud gaming sites at a monthly dumping price in the future.

What makes for an un­com­pli­cat­ed gaming ex­pe­ri­ence for one user is a major dis­ad­van­tage for the tech-savvy gamer. Those who like to tweak settings, install mod­i­fi­ca­tions and game using top spec graphics might not enjoy cloud gaming.

The quality of the graphics output is limited by the streaming service provider. All major cloud gaming providers currently offer 1080p, which is Full HD. If your monitor or TV supports a higher picture quality, the res­o­lu­tion is usually down­scaled. Google Stadia is an exception: the cloud gaming service also supports a 4K res­o­lu­tion with up to 60 frames per second for some titles – but only with the Stadia Pro plan.

However, graphic settings aren’t the only re­stric­tions. PC gamers may miss certain freedoms when cloud gaming. For example, it is not possible to set up your own servers and liberally define the rules for com­pet­i­tive or co­op­er­a­tive in­ter­ac­tion. Players will not be able to create, manage, and moderate a Minecraft server. This is only possible via the classic PC version, which is installed and launched on the player's system.

All in all, the “Netflix for games” is fairly un­de­vel­oped right now. Depending on the provider, games may need to be purchased in­di­vid­u­al­ly. Some services enable game downloads while others do not. In addition, in­ter­faces to other platforms, such as Steam, are often only partially im­ple­ment­ed, which can lead to errors – and in the worst case, to pur­chas­ing the same game twice.

Latency, also called reaction time, is an important factor when con­sid­er­ing mul­ti­play­er games. It marks the period between an event happening in-game and the oc­cur­rence of the per­cep­ti­ble reaction to it. The latency is often referred to as “ping” in Internet jargon and is either indicated with a three-digit number in the unit mil­lisec­onds or displayed by green, yellow, or red bars (analogous to cell phone or WLAN reception).

The ping needs to be low for a smooth mul­ti­play­er gaming ex­pe­ri­ence. The ping is affected by several factors, for example when several devices in the same household use the same Internet con­nec­tion and transfer large data packets, the ping may be low. Latency is worst if the entire game content is first trans­ferred to a gamer’s computer and inputs need to be processed by the server as well. This in­evitably affects the per­for­mance and thus the latency.

Generally, cloud gaming providers can guarantee low latency. However, actual results depend on the bandwidth of a user’s broadband con­nec­tion and the load of other devices in the network. When it comes to latency, most gamers seem to be satisfied. Latency may be more no­tice­able in games that demand an increased response speed, such as com­pet­i­tive online shooting games, and this can impact the gaming ex­pe­ri­ence. Games that require normal speeds can be played well via cloud gaming.