Activision Is Interested in Cloud Streaming, But Feels the Tech Isn’t Ready Just Yet
Activision is in talks with cloud streaming providers, but there is still work to be done before the tech is ready for mainstream adoption.
During Activision’s financial conference call for investor and analysts, Chief Operating Officer Coddy Johnson was asked to talk about the potential of cloud streaming for the publisher’s games.
“Over the long term, we think that cloud-based gaming and streaming is a very strong positive for the industry and particularly for us. It should ultimately accelerate growth in an already growing industry.
First, it has the potential to significantly increase the reach of our big-screen experiences to audiences that don’t have a console, and in some cases don’t have a PC depending on the streaming system you’re talking about.
And second, even for existing gamers, streaming systems should be able to provide more easily accessible experiences, reducing friction, enabling deeper ongoing engagement throughout the day as the content is more available.
And third, we think we are particularly well-placed to take advantage of streaming and cloud-based gaming when it comes. We’ve deep and strong franchises that certainly benefit from exposure to broader audiences. We have vibrant player communities looking right now for additional ways to access the franchises that they love. As a company that creates our content and owns our IPs, and the best IP in gaming, we think, we’re well-position to take advantage of any associated economics that the streaming platforms may bring to bear.”
Johnson also mentioned that Activision is in talks with large global tech platform providers about their cloud infrastructure and potential streaming solutions, but he admitted that there are hurdles to overcome before streaming becomes widely adopted.
Milliseconds of latency can disrupt gaming in a way that doesn’t matter when you watch a move or a TV show.
“We feel there’s still work to be done before the tech is ready for mainstream adoption. We think that this will happen, probably not in the near term, and we’re well positioned when it does.”
Johnson concluded by mentioning that the biggest potential gain in the near term is to broaden the global reach of Activision franchises to mobile, and there are large opportunities in that.
If you want to read more about Activision’s financial results in the latest quarter, you can check out our dedicated article.