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Perry: Next consoles 'insane' not to support cloud gaming photo

Speaking at a GDC Online panel, Gaikai CEO David Perry has been quoted as saying next-generation consoles would be "insane" not to include cloud gaming functionality. "You don't want to be a console that doesn't," he commented.

"This future is coming, trust me. We're well-funded. This is going to happen. OnLive is already making it happen. You need to be prepared for that." Perry also mentioned that gaming has to "fundamentally" get back to being accessible, something he feels the cloud can help address.

I could see cloud streaming support offered as an alternative method of accessing console games, perhaps later on if not at launch, but much like shifting entirely to digital distribution, I think this is one of those concepts that's going to get pushed back again and again by the usual forces.

GDC Online: Cloud Gaming's Fast-Approaching Future [Gamasutra -- Thanks, de5gravity]








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61 comments | showing # 1 to 50
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DrunkPunk's Avatar - Comment posted on 10/12/2011 19:39
DrunkPunk
We're dealing with companies like Sony trying to charge just for cloud save features. Cloud gaming probably isn't going to happen unless they can find a way to really profit from it. And with hard drive limitations and the such, I would think digital distribution makes more sense than cloud gaming.
thegeeet's Avatar - Comment posted on 10/12/2011 19:41
thegeeet
I will never support onlive or cloud.
EnigmaEmu's Avatar - Comment posted on 10/12/2011 19:53
EnigmaEmu
Snarf
PalinRMA's Avatar - Comment posted on 10/12/2011 20:02
PalinRMA
Will not support cloud gaming but free cloud saves liked Steam would be cool.
Shinta's Avatar - Comment posted on 10/12/2011 20:05
Shinta
Count me out. This has no benefit for anyone except the people trying to make money off of it.
PalinRMA's Avatar - Comment posted on 10/12/2011 20:05
PalinRMA
Also I would need a 10 Megs internet connect and no bandwidth caps, not happen in the next ten years where I live.
shouryuuken's Avatar - Comment posted on 10/12/2011 20:08
shouryuuken
cloud gaming should be the way to rent games. id understand microsoft or third parties not wanting to stream triple-A titles, but i'd gladly pay 5 - 10 bucks extra a month for a live membership that would allow me to have access to all of the xbla games via a streaming service.

the only way id be down for cloud gaming is if it were presented as a way to "rent" games, but not as the only way to play any of my games - especially games i buy.
Shane Saiyan's Avatar - Comment posted on 10/12/2011 20:13
Shane Saiyan
I agree, cloud gaming would be a cool way to handle rentals. Otherwise, ehhh.......pass.

All about the cloud storage for my saves though.
Tristrix's Avatar - Comment posted on 10/12/2011 20:13
Tristrix
"We're dealing with companies like Sony trying to charge just for cloud save features."

Most dishonest comment of the day award.

On topic, everyone has their own pet theory about where gaming is headed in the future. This is just one of many many possibilities, and if it happens, I'm sure we as gamers will roll with it just like we always have.
Scuffles's Avatar - Comment posted on 10/12/2011 20:13
Scuffles
cloud is a marketing term for the technologically impaired and I treat it as such.

Offsite storage for save files is one thing but streaming games really isn't practical. There are too many variables and drawback that linger over it like a dark cloud waiting to suck the soul out of your silver lining.

Yeah its got the instant gratification thing down... but stretch the bandwidth it uses over time and it becomes less and less practical. Consider environmental problems (see: your internet goes down or they have server issues) you are now without your games. There is latency but that isn't as much of an issue if you don't mind learning to play around it even then its not always something you are going to notice.

Then there are the extra costs, say your ISP decides to throttle you or your late night (insert game here) match sends you over your bandwidth cap and you get an nasty surprise when your next bill comes.

Now you consider the fact that the rendering farm that is being run offsite to stream you video of your videogame (yeah I know sorta meta)has expenses, they are going to want to cover those. So I don't see any 'cloud' gaming service coming along that isn't going to either restrict you in some way unless you pay a monthly fee or flat out just be a subscription system.

No OnLive does not have a mandatory monthly fee .... not for lack of trying to start out with one.

The place that 'cloud' gaming really shines is for demos, you don't have to download, you don't have to install, you simply just hop in and play. However I don't think many companies are going to want to invest in a renderfarm so people can play free instant demos.

Maybe at some point in the future where every ISP and their dog is not trying to cap and tier their service and we go back to the good oll days where unlimited actually means unlimited then 'cloud' gaming might have some clout.

For the forseeable future physical media and digital download will remain king & queen of the videogaming world.

tl:dr
Too many issues with infrastructure and technology to make 'cloud' gaming viable at present. Don't rule it out at some point as becoming mainstream.
meteorscrap's Avatar - Comment posted on 10/12/2011 20:21
meteorscrap
I've said it before, I'll say it again... OnLive's bandwidth and server usage have gotta come from somewhere.

When someone's playing Crysis 2 or whatever, there's a server somewhere devoting a chunk of its resources rendering the game and delivering it to you. So OnLive has to pay for the energy consumption every time you play a game, because they're the ones paying part of the electricity bill, not you. On a game you can theoretically play forever, the energy costs for you playing the game are eventually going to nibble away any profits OnLive made from the sale of the game to you. A successful multiplayer title with longevity like Modern Warfare 2 or whatever would kill OnLive. The only games which can succeed as a streaming service are MMORPGS with a monthly fee, provided OnLive can get a slice.

The big thing with OnLive is bandwidth, however. Most Canadian ISPs limit the bandwidth to 100 Gigs a month or less. With OnLive's 3 gig an hour bandwidth usage, that's 33 hours of gaming time for meteorscrap... Provided he doesn't use his internet for streaming videos from his Xbox or online or do anything with the internet whatsoever. Even in the USA, most "unlimited" providers have a clause about excessive usage. Until the bandwidth issue is addressed either by ISPs raising their limits or OnLive somehow fighting that 3 gig an hour bandwidth use down to a more reasonable level, I'm not convinced it's going to take off very well.

And to complete this trifecta of insanity, let's not forget that you have to have enough computing power to handle cloud-based gaming, which means that either a majorly anticipated launch title is going to necessitate more servers or you're going to log on to your cloud and find out that "Oops, Servers are full! Try again another time!" Either way, it's an additional expense that companies don't need, especially when one considers the way the market could fluctuate. Imagine having to keep an extra fifty or sixty server banks online because your traffic jumps up every game release, and for eighty percent of the time those servers are pretty much dormant. That'd be a piss-off to any business owner.

It's exciting technology people are jumping on because it's new, but eventually it's going to become the victim of its own success. It's not sustainable, because the business is taking on more expenses rather than passing them on to the consumer. OnLive will either fold, or remain niche. They can't afford a breakout success.
meteorscrap's Avatar - Comment posted on 10/12/2011 20:22
meteorscrap
Damn, ninja'd by Scuffles.
Scared's Avatar - Comment posted on 10/12/2011 20:29
Scared
Release a 'cloud gaming' console in Australia (or most other countries) and it's guaranteed to fail. Internet speed and quota (yes, a lot of places still have monthly quotas) are not fast enough or large enough to support the 'next generation' gaming.
RocketKnight's Avatar - Comment posted on 10/12/2011 20:53
RocketKnight
I prefer buying physical copies of games, but cloud gaming is really friggin' convenient.
Oh, and Snarf.
JFF's Avatar - Comment posted on 10/12/2011 20:54
JFF
I can't believe that Australia's internet is worse than Brazil. It can't be!
RoverTHX's Avatar - Comment posted on 10/12/2011 21:00
RoverTHX
I can see one console not supporting it, The WiiU
Why?
Nintendo is insane, not that the Wii U is going to good or awful but when you look at Nintendo's Track Record, their stuff is pretty insane for what it is and done for.
Rabite's Avatar - Comment posted on 10/12/2011 21:04
Rabite
Scared: A lot of US internet companies are introducing them.
JohnGrisham's Avatar - Comment posted on 10/12/2011 21:24
JohnGrisham
The next xbox can skimpout on bluray and the cloud and still sell like hot shit. They already got their (existing) customers hooked with thier xbl subs and xbla/dlc collection.
HKKstudios's Avatar - Comment posted on 10/12/2011 21:40
HKKstudios
Because Memory Cards/USBs are hard
PDawgy's Avatar - Comment posted on 10/12/2011 21:44
PDawgy
Snarf snarf....oh yeah, and some guy gave his opinion on some thing.
cow's Avatar - Comment posted on 10/12/2011 22:10
cow
The world's infrastructure simply can't handle digital as the sole platform. Unless you live in a big area you're probably hit with caps and speed limits that makes the recommended 5megs for onlive ridiculous. We're another 10 years off at least for this.
CaptainHowdy's Avatar - Comment posted on 10/12/2011 22:49
CaptainHowdy
Doubt it.
Kanten's Avatar - Comment posted on 10/12/2011 23:14
Kanten
Cloud proponents might be better if they weren't so up their own asses. Cloud gaming is a good idea in theory yes, but American ISPs aren't providing remotely the bandwidth required for native 1080p gaming. I would rather not have to suffer through another generation of sub-HD consoles and another half-decade of games stuck in the past just to push a fledgling tech.
El Conrado's Avatar - Comment posted on 10/13/2011 00:09
El Conrado
David Perry?

The co-founder of Gaikai? Pushing for coud gaming? No way!

People like him always seem to forget that the world is, you know, more than just one country.
bukuma's Avatar - Comment posted on 10/13/2011 00:19
bukuma
Just like people were slow to take to Steam, people will be slow to take to cloud gaming. personally I like it in theory, but since I don't live in a big city, the internet sucks, call me in 10 years when the internet companies give a damn about places with less than 1 million people living within 5 feet of each other.
DarkCult's Avatar - Comment posted on 10/13/2011 00:55
DarkCult
Not interested.
Tyler Youngblood's Avatar - Comment posted on 10/13/2011 01:08
Tyler Youngblood
im all for cloud gaming over traditional digital distribution because I hate waiting for a game to download and the I am stingy on harddrive space

but I really dont think cloud gaming could come next gen or maybe in two gens because really right now connections would be too slow and cause lag plus the amount of bandwidth it would use up.
Cudgeon's Avatar - Comment posted on 10/13/2011 01:23
Cudgeon
Well, the Cloud gaming is something negative, the idea behind it is that you pay per time and can't buy a game and then play as long as you want.
Also there are still a lot of people who don't have a good internet connectivity.

The only thing that sure will come will be cloud save functunality, I think at some point they will have to offer it for free because it became standard.
AeriusAstrum's Avatar - Comment posted on 10/13/2011 01:29
AeriusAstrum
Someone who lives in the UK or the parts of the USA where the internet is absolute shite should take Mr. Perry into their house to demonstrate the reason why cloud gaming doesn't work yet, and won't until the infrastructures of the major consumers are improved.
Cudgeon's Avatar - Comment posted on 10/13/2011 01:33
Cudgeon
And I also have to agree with Disturbedmindxx if you target the gamer crowd, you shouldn't stop providing physical copies. It's possible to go both ways but everytime you think about stopping providing physical copies you just have to visit youtube and watch gamers making videos of them unwrapping a physical copy...
pedrovay2003's Avatar - Comment posted on 10/13/2011 03:54
pedrovay2003
Fuck cloud gaming, now and forever. You take that control away from me, and I take that money away from you.
Stealth's Avatar - Comment posted on 10/13/2011 04:12
Stealth
so says a bias guy. And so says a guy whose business is failing
psycho terror2's Avatar - Comment posted on 10/13/2011 04:44
psycho terror2
"Perry also mentioned that gaming has to "fundamentally" get back to being accessible, something he feels the cloud can help address."

what a tool, gaming is more accessible today then ever before, and yes, there is such a thing as "too accessible". there is a point at which that accessibility begins to eat away at functionality and efficiency and IMO at least at the present time cloud gaming is definitely overstepping that mark.
Dr-Peace's Avatar - Comment posted on 10/13/2011 05:32
Dr-Peace
No thanks I'll pass.

Cloud Gaming has even more potential problems that digital distribution (as people have pointed out), and I'm expected to give up my collecting ways for that?

Bring on the Wii U, and its DISKS. WHICH I CAN ACTUALLY OWN.
Drakengard's Avatar - Comment posted on 10/13/2011 05:55
Drakengard
@ Meteor and Scuffles

While I agree with a good part of what you're saying, I don't agree with the outlook that somehow OnLive is going to have issues bringing in profits.

Server farms, or at least this what college is teaching us, are more cost efficient the larger they are. So if OnLive takes off, their costs could theoretically go way down as people use the service and they have to expand their existing server farm size more and more.

And then there's the fact that Steam does very well for itself in spite of their having to run servers as well. Obviously much less so than OnLive, but it would still be considerable and they're still doing quite well so I have no reason to believe that those who play CoD a ton are going to hurt them if they're also buying the DLC that comes out. If they leverage their service correctly, they'll be sucking money out of people like Steam does with sales and promotions on providing demos or rents for games that people might not otherwise play and turn those trials into sales.

There's all sorts of room for the service to take off and it could really hurt consoles if they don't adapt right now. If they don't tackle it (in spite of it's many current limitations) they'll be crying in the not too distant future as consoles get phased out as relics while Steam and OnLive do their thing and the PC (and PC devices) become the defacto way to game again.

What's an interesting prospect to me is the idea of Steam branching out into this model and supporting both a full DD and streaming service.
Angry Beaver's Avatar - Comment posted on 10/13/2011 06:00
Angry Beaver
It's interesting how gaming companies don't seem to give a shit about their customers.
Whenever I see an article someone about saying cloud gaming or digital-distribution-only is the future, the comments to that article are mostly negative - and not just on Dtoid.
Personally, I'm also absolutely against that future. I'm fine with paying ~€10 for a digital copy, but when it comes to the big games that are €50, 60 or even more expensive, fuck that! When I spend so much money on something I want to able to SEE it and hold it in my hands. Just the knowledge that somewhere in the digital nirvana there is some data floating around that I can access - unless somebody somewhere fucks something up, of course - is not enough!
Sexualchocolate's Avatar - Comment posted on 10/13/2011 06:15
Sexualchocolate
I was pleasantly surprised by onlive.

Just wish my fair to middling internet connection could handle it better.

In 10 years when the infrastructure can take it, I'm sure it'll be awesome.
Hostcoin's Avatar - Comment posted on 10/13/2011 06:18
Hostcoin
Game servers with a Cloud Hosting technology base can make a huge impact on gaming industry.


host.co.in
meteorscrap's Avatar - Comment posted on 10/13/2011 07:14
meteorscrap
@Drakengard

Here's the thing. Let's say that the $49.99 price point leaves OnLive with twelve bucks for their own pockets after the publisher has been given their cut. That twelve bucks has to cover the operating costs for the game itself, the staff maintaining the servers, and whatever the cost is for piping out 3 gigs of bandwidth to the end user. Let's say that cost is five cents an hour. Yes, that's two-hundred and forty hours for a game before it becomes unprofitable, but consider a lot of games which have strong online communities.

I have no doubts that the majority of the userbase still playing Modern Warfare 2 right now, nearly two full years after launch, have all put in over 240 hours. That's 100,000 people. Getting back to those theoretical numbers I mentioned, those 100,000 people playing the game translate into a $5000 per hour operating cost. I've seen the numbers: At peak hours, Modern Warfare can still maintain a number of users that high for six hours a night.

That's a cost of over thirty grand a night.

OnLive, until this point, has been very careful not to pick up games with a lot of mass multiplayer appeal, and I think this is why. A breakout success would kill them or their credibility. Imagine if they shut off a game 100,000 people were still playing nightly. A game people paid good money to buy access to not only it, but DLC as well. I'd be furious if a game with such an active community got shut down for no apparent reason. I certainly wouldn't be taking my business to OnLive again.

A successful game like Modern Warfare 2 on OnLive would present them with a catch-22: Keep the game long past the point of profitability to keep customers happy, or shut it down once it moves beyond that point and face the wrath of the customer?
ParkourDog's Avatar - Comment posted on 10/13/2011 07:43
ParkourDog
Actually the CURRENT consoles could support cloud gaming with a Firmware update. It doesn't require any new fancy hardware. What's in the little OnLive box is quite basic and can all be done by current Xbox/PS3 hardware & software.

That's why this generation of console could technically have been the last. But sadly there's still a market for retail games in a box as there is surprisingly a big portion of 'slow-adopters' in this industry. Who would have thought.
Jack1982cp's Avatar - Comment posted on 10/13/2011 07:44
Jack1982cp
So this guy is the CEO of a cloud gaming company, and he's assuring us that cloud gaming is going to be the next big thing. Yawn. It's called a sales pitch.
Drakengard's Avatar - Comment posted on 10/13/2011 08:18
Drakengard
@ meteor

Yeah, that wold be pretty awful. I guess the thing I forget is that with a DD service like Steam, you're still doing the majority of the work on your end and sharing as little data as possible with servers when playing.

When you consider how much more data is being sent out for a full streaming service it does really start to mess with things especially as ISPs are applying caps (admittedly often ones that almost no one hits).

Also, Valve doesn't host all of the servers you have access to so there's that as well. So yeah, it would appear that OnLive has much larger obstacles in the way than I first considered. Still love the concept though and I do still feel that MS and Sony should get into such a world if only for demos and single player games especially smaller XBLA/PSN titles.
DrButler's Avatar - Comment posted on 10/13/2011 08:27
DrButler
What ever happened to pop it in and play? This generation pretty much single-handedly killed videogames for me.
acetated's Avatar - Comment posted on 10/13/2011 08:51
acetated
Vidja Games have Changed...
amtalx's Avatar - Comment posted on 10/13/2011 09:06
amtalx
It's a cool idea, and I would expect MS to try something cloud related maybe a year into the release of their next hardware cycle. It would be great for providing timed demos of retail releases that are streamed directly over XBL. I know there are several games I'm interested in, but I don't want to take the plunge until the price drops, or I can get to play the first hour of the game.
DasPooch's Avatar - Comment posted on 10/13/2011 09:07
DasPooch
Why would I want cloud gaming, when it means I can't own the games I want? I don't mind digital distribution, but "cloud" gaming can eat a dick.
acetated's Avatar - Comment posted on 10/13/2011 09:19
acetated
Well with the way user agreements are going we aren't really going to own the hardware anymore either....
Kanten's Avatar - Comment posted on 10/13/2011 09:47
Kanten
@Drakengard

Those "current limitations" aren't going anywhere anytime soon. Cloud gaming gaining any foothold is dependent on ISPs dramatically increasing their bandwidth, which they have made little effort to do because companies like Comcast continue to pretend that bandwidth is a limited resource. And it's going to stay that way unless the FCC puts an end to the legal monopolies the ISPs are getting.
Drakengard's Avatar - Comment posted on 10/13/2011 09:51
Drakengard
@ Kanten

It's only compounded by the lack of competition. I'm locked into a local ISP. They're actually pretty great, but the fact remains that I can't even get Comcast here.

If there was real competition (and legal changes) I think we'd see a vastly different marketplace. But perhaps I'm just dreaming... Oh well.
Elsa's Avatar - Comment posted on 10/13/2011 10:13
Elsa
Coincidentally I just did a blog about this for this weeks topic of integration... the thing about cloud gaming is that it's in it's infancy.

In regard to bandwidth caps... those will gradually rise (particularly in N. America where the use of digital TV has freed up the old bandwidth previously used by analog TV). My own internet service went from 25mbps with a 250GB cap to 50mbps and a 400GB cap at the same cost. Speeds and caps will gradually increase.

Regarding cost to the gamer... currently with OnLive you can pay $9.99 a month to have access to over 100 games - including games like Homefront and Borderlands and other top rated games. I don't think people could actually find a better deal out there.

Cloud based gaming is in it's infancy.... I do think that it will play a part in the future at some point.
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