Tuesday, August 21, 2012

GameStop enters the cloud, leaves consoles in the rain


GameStop has bet big on the cloud-gaming market, but has decided to leave consoles out of their game streaming service in favor of tablets, PCs and TVs.

In 2011, GameStop acquired two companies, Spawn Labs and Impulse, and announced that they had plans to create a cloud-based gaming service similar to OnLive that would be used to “compete fiercely” with Steam. The service would allow customers to purchase a game and instantly start playing it on any of their supported devices. It would even allow them to sample games using free trials.

GameStop has demonstrated how their cloud service
might work on their website.
OnLive, an existing on-demand game-streaming service for all Internet connected devices, including consoles, has been rumored to be struggling financially. Could this leave room for GameStop in the market, or does it mean they will also struggle for success?

The service, which is slated for release next year was originally thought to have support for consoles, but GameStop says that their decision to drop support for consoles was due to customer feedback during a closed beta and their success in selling mobile devices like the Nexus 7 tablet and iPad.

Those interested should also look out for a public beta later this year.

The market for console games is still huge and GameStop's choice to omit them from their service could mark a disadvantage compared to possible competitors. Even while the tablet-gaming market is growing, the decision would limit access to games from the major players. 

GameStop has recently begun selling tablets and have stated they may even expand further into the market by creating their own tablet. I’m wondering what else GameStop has in store on their path to “becoming a technology company” instead of just being a games retailer. 
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