The future of video gaming : Onlive
Nowadays, gaming downloading platforms meet huge success (such as AppSotre for mobile gaming or Xbox Live, Wii). Taking into consideration there is an opportunity there, Steve Perlman, founder and CEO : Onlive, want to set up a new start-up company as first mover of VGOD (Video Gaming On Demand).
How does it work ?
1) Plugin installation
2) Game choice
3) Direct connexion to the game
Consequently, we can operate a short SWOT analysis of this project. Waiting the release (forecasted on end of the year for US area and for beginning of the next year for Europe) where we will have the opportunity to measure strenghs and weaknesses, we can already focus on project potential measuring opportunities and threats.
Opportunities
Lower distribution cost
On one side, editors can lower their distribution costs and associated communication costs.In addition, they increase the product life cycle to their titles.
Community
We all know how important is a community now. If all make Onlive a success, this is a huge opportunity to implement a strong player community.
Threats
Need to propose attractive titles
In order to make a console a must, it is mandatory to have a games portfolio (”blockbusters”) titles which “rox”. Onlive should prove itself. according to Onlive, the firm would have already firmed strong partnerships (Take Two, THQ, Atari, Warner, Eidos, Ubisoft, Electronic Arts)
Competition from console manufacturers
It is true that currently Onlive has no weapons to fight with Sony, Nintendo or Microsoft. Nevertheless, Onlive fight against obsolesence a console (it can withstand any medium) and it will be far more attractive to transit through this service rather than investing 500 or 700 dollars in a new console.
Need to set up strong IT infrastructure
In order to make them run, Onlive should set up a strong IT infrastructure (meaning to invest huge budget in servers all over the world).
To conclude in a few words :
On paper, it seems awesome. However, as former VGM co-workers told me, we can wonder if a game such as Farcry can perform through this model. And what about you ? Do you believe in Cloud-Based Gaming ?
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