A few days ago, Sony announced that it will reduce the subscription fee of the PlayStation Now and enrich the game content, declaring a war on Google and Microsoft. The latter two have not yet responded to the price war, but there is no doubt that the competition in the global market of cloud games will become more and more intense.

Compared with the overseas market that has been rapidly entered the compete stage, Chinese cloud games welcomed its first year in 2019, and many Chinese giants successively entered this new field. Tencent, Huawei, Shunwang Technology(SW-TECH) and other big companies launched the competition of the number one cloud gaming manufactures, and other cloud game companies also participate in this game.

Three head manufacturers and various start-ups are creating their own cloud gaming modes. Tencent uses standard X86 architecture + Nvidia GRID server to provide cloud gaming services to users with virtualization technology, which is also the mainstream of cloud gaming mode in China Huawei is using ARM server + AMD or other rendering GPU. While many start-up enterprises use the embedded ARM array server with lower cost in the initial stage to provide Android cloud gaming service represented by. And SW-TECH adopts X86 architecture + Internet cafe edge computing mode to control the cost.

The cost is indeed the core problem that troubles the major cloud game manufacturers. Zhao Liang, chief product officer of SW-TECH, said in a interview of the cloud game media, that cloud games are not popular at this stage is mainly because of the limitation of cost, including the cost of CPU, GPU servers, and computer rooms rather than the unavailable network conditions and the immature technology.

Even for veteran cloud computing vendors such as Tencent and Huawei, the cost of building a computer room and purchasing professional-grade graphics cards is still extremely high, and the cost of GPU clouds cannot be effectively reduced in the short term. But for SW-TECH, it has ready-made Internet cafe users to support the establishment of cloud computing pool. Since it’s difficult for existing enterprises to enter the Internet cafe field, the business model of SW Cloud Games can not be easily copied by big companies such as BAT. According to Zhao Liang,  SW-TECH will build a GPU computing pool based on the edge nodes of SSW Cloud in the national layout, and hope to provide computing power to major cloud game manufacturers such as Alibaba Cloud and Tencent Cloud in order to promote the development of cloud games.

Since most foreign cloud game makers need to explore the Chinese market in the short term, the delay has become a serious problem. For example, due to physical limitations, even if the conditions are absolutely perfect, in Shanghai, if you want to play game with a server set up in Los Angeles, there will be a delay of 35ms, which is only one-way transmission. But the data transfer of the game is two-way transmission, so even if the cloud can calculate the result in 0 seconds, the natural delay is 70ms.

From this perspective, the core of the cloud game is to have enough edge nodes. Tencent and Huawei did not disclose the number of the edge nodes of cloud game projects. Taking SW-TECH as an example, in September, it’s reported that it has established more than 100 edge computing node rooms in over 50 cities of 20 provinces across the country, covering Shanghai, Zhejiang, Chongqing, Inner Mongolia, Gansu, Shaanxi and other regions.

Relying on 5G applications, the development prospects of cloud games in China are relatively good if solving the two major problems of cost and delay. From the perspective of growth rate, the compound average growth rate of China’s cloud game market in the past five years is 97.9%, much higher than that of 17% in the game industry. In the next few years, commercial use of 5G will further solve the problem of limited network bandwidth and delay. The scale of China’s cloud game market is expected to continue to expand.

At that time, cloud game makers with strong game operation capabilities such as SW-TECH will truly stand out and become the real beneficiaries of the cloud game market.