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Amazon Making its Own Stadia | Games ReCAP
Key insights
6 takeaways- 01Amazon is preparing to launch a cloud-based gaming service by 2020, aiming to leverage its Twitch platform and internal development studios to compete in the streaming market.
- 02Amazon faces significant hurdles in the gaming sector due to a history of cancelled projects like Breakaway and development struggles with titles such as New World and Crucible.
- 03Established console manufacturers Microsoft and Sony hold a competitive advantage through their existing streaming infrastructure, specifically Xbox’s xCloud and Sony’s Gaikai acquisition.
- 04While remote play technology is currently viable, the long-term success of cloud gaming platforms remains uncertain as tech giants attempt to bridge the gap between their capital resources and a lack of industry-specific experience.
- 05Traditional console makers maintain an edge over tech newcomers by possessing deeper expertise in gamer expectations, marketing, and the ability to foster long-term audience trust.
- 06The entry of Silicon Valley firms into gaming is driven by the proven profitability of subscription-based models and the potential for long-term user engagement and integrated advertising.
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Transcript
[Music] so Amazon is creating its own stadia service that is gonna be announced in year 2020 the same way that the movie industry and every studio and network is creating their own straining the game industry and respectively are going into this very hard fast Google stadia has the balls to kind of stumble out of the gate and test the service and maybe if they have the patients that can wheel it out and provide something that is viable for customers out there in the meantime the excitement around streaming games is still there customers still would want a great example of how the Duke and Amazon is no different they are not a stranger in games they do own twitch and a few game studios it is sometimes forgettable that they actually make games but they do have one pal right now and Tory are working on our Lord of the Rings RPG a
couple open-world games called new world in crucible but so far they don't have a good track record of delivering games because making games as hard as we all been a good 5 years since we really heard anything substantial breakaway was cancelled immediately upon release and rumours has it that these Amazon game studios have been struggling the same way that I've received Google struggling to make their first party games but again these megalith companies have the patience to kind of see things out and let's not forget about how the oh jeez Xbox SOT can't have their own streaming services as well Microsoft has announced their X cloud and Sony acquired cacti a few years ago that they're already starting to roll out both of these consoles Xbox and Sony have somewhat of a streaming gaming feature on their existing consoles something that I've been experimenting with as a consumer has been the Steam remote this works a little bit to our understanding and like I've been having really a good time connecting towards my Steam library with a ps4 controller in my
and it has been worth you fall asleep it's basically screen shares a computer has running my steam game at the same time and I'm able to kind of sit on my couch and play as well and this has worked very nicely without any hiccups or unexpect Asians this too has worked well with the zooming Xbox console so all these excitement around the Silicon Valley companies kind of digging in and getting into this space I think at the end of it the consoles are they're the ones that coming on top because they know our audience they know the gamers expectations and quality you know how to market game because they've been doing for a long time what you see with the Silicon Valley company are kind of like a hipster array into the business and it's been turning a lot of people off but their market I just go back to the stadia at launch video marketing as a way where an infinite amount of money and budget was available and that was the best so get ready for a dizzying amount of cloud services from pretty
much everyone and everything game industry have been exploding in terms of popularity and interest and everybody wants a piece of Netflix has paved the way for many companies in all entertainment to show how profitable a monthly subscription to everyone in the world could look like in gaming requires a lot of time to continue streaming which opens potential for advertising which these services love to do a problem with these bigger companies will be unlimited any source in which could be also an advantage to these console makers although they have lots of money behind they are more inclined to succeed unless tries so it's interesting to see how this all plays out in the veterans to the newcomers with a lot of money and seeing if experience really does win at the end of the day so let me know you guys's thoughts in the comment section below you really think that see Silicon Valley companies will beat out the console makers do you think streaming at
all would be at all viable if the technology plays out as it is e market [Music] you [Music]
Summary
The gaming industry is currently undergoing a significant shift toward cloud-based streaming services, mirroring the fragmentation seen in the television and film sectors. Amazon is preparing to enter this competitive landscape by 2020, leveraging its existing infrastructure, including Twitch and its internal game development studios. Despite Amazon’s significant resources, the company faces a challenging track record in game development, marked by cancelled projects like Breakaway and ongoing struggles to deliver high-quality first-party titles such as New World and Crucible.
This push into cloud gaming is driven by the proven profitability of subscription-based models popularized by platforms like Netflix. Silicon Valley giants are increasingly drawn to the gaming sector due to the potential for long-term user engagement and the lucrative opportunities for integrated advertising. However, these newcomers face stiff competition from established console manufacturers like Microsoft and Sony. These veteran companies possess a deeper understanding of gamer expectations, established marketing expertise, and existing streaming capabilities, such as Xbox’s xCloud and Sony’s acquisition of Gaikai.
While Silicon Valley firms bring immense capital to the table, their entry into the market is often perceived as experimental or disconnected from core gaming culture. In contrast, traditional console makers are better positioned to maintain quality and audience trust. Current consumer experiences with existing remote play solutions, such as Steam’s streaming features, demonstrate that while the technology is viable, the ultimate success of these platforms will depend on whether deep-pocketed tech companies can overcome their lack of industry experience or if the established console veterans will retain their dominance in the evolving digital landscape.
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