Vietnam’s gaming industry is growing fast, and cloud gaming could revolutionize it even more. In this article, we’ll conduct a SWOT analysis of cloud gaming in Vietnam, with multiple aspects in mind.
The potential of the Vietnam game industry
Vietnam’s gaming industry is growing with trends and opportunities. Mobile gaming demand increases thanks to smartphone adoption and affordable data plan accessibility. MOBA games, like Arena of Valor, are increasingly popular for competitive play and tournaments. Moreover, the Vietnamese government supports the gaming industry for growth & job creation.
Read more on Vietnam’s profitable gaming market: Vietnam’s mobile game market: Opportunities and Challenges
Cloud gaming global overview
Cloud gaming is a method of playing video games using remote servers in data centers. It allows users to play games on powerful remote servers that transmit directly to their devices. Individuals can enjoy top-quality games on smartphones, tablets, and smart TVs. Cloud gaming doesn’t require costly hardware upgrades and allows access to numerous games without downloads or installations.
According to Appinventiv, the Cloud Gaming Market was valued as per Verizon at USD 612.31 Million in 2020 and is projected to reach USD 5370.37 Million by 2026, registering a CAGR of 45.2% during 2021- 2026. Cloud gaming is better than traditional gaming
Another report by GlobeNewswire
SWOT Analysis of cloud gaming in Vietnam
Strengths
1. Cost-effective gaming solution:
It enables gamers to play without costly hardware upgrades.
2. Say no to complex installation:
Cloud gaming offers more titles without the need for purchases or installations.
3. Flexibility and Convenience:
Cloud gaming allows users to stream and play on various platforms without hardware compatibility. Because of its “game-changing”, cloud gaming has become an accelerated gaming trend after the pandemic
Weakness
1. Lack of local content
There is limited research on gaming as a leisure activity in Vietnam, which can make it challenging to understand the specific needs and preferences of Vietnamese gamers
It refers to the delay between a user’s input and the response in the game. Vietnam’s internet infrastructure and connectivity may not be as robust as in some other countries, which can lead to higher latency. This issue can negatively affect the gaming experience
3. The Proximity of Data Centers
The proximity of physical servers is the distance between the user and the data center hosting the game servers and it can affect latency and overall performance. In Vietnam, the availability and proximity of data centers may not be as optimal compared to regions with more established gaming infrastructure
4. Requires high-speed internet connection
Cloud gaming depends heavily on internet speed for effective game streaming. Internet bandwidth limitations and fluctuations in connectivity can hinder the seamless streaming of games which leads to interruptions, lag, or lower visual quality
5. Requires a subscription or pay-per-use model
This may pose financial challenges for some gamers in Vietnam. Affordability and willingness to pay for cloud gaming services could be a limiting factor, especially among segments of the population with lower income levels
Opportunities
1. Developing Infrastructure
Vietnam has one of Asia’s highest internet penetration rates, reaching 72.9% of the population as of December 2020. This widespread internet access provides a solid foundation for the growth of cloud gaming in the country. Companies like Viettel High Tech are working to fulfill the potential of 5G for both gamers and game developers
2. Growing esports community
Cloud gaming can cater to this demand by providing a cost-effective and convenient solution. Some early signs of success can be seen with cloud gaming subscription services like Xbox Game Pass expanding to include Vietnam and other Southeast Asian countries.
3. Government support
The Vietnamese government has also shown support for the development of the gaming industry, recognizing its economic potential. Cloud gaming is definitely a lucrative opportunity for game publishers, game designers, and game developers
4. Collaboration with innovative partners
Several key players are already operating in the cloud gaming market in Vietnam, such as Google Stadia, NVIDIA GeForce Now, and Microsoft xCloud. Local gaming publishing companies and internet service providers are also entering the market, recognizing the potential of cloud gaming in Vietnam’s gaming landscape. The competition among these players is driving innovation and improving the quality of cloud gaming services in the Vietnam industry
Newzoo & Google with Game
Threats
1. Competition from Traditional Gaming Methods
Traditional gaming methods, such as console gaming or PC gaming, still hold a significant market share in Vietnam. Convincing gamers to shift to cloud gaming platforms may face resistance due to attachment to existing gaming setups and habits.
2. Regulatory Challenges:
The regulatory environment for cloud gaming in Vietnam may present obstacles and uncertainties. Ensuring compliance with relevant regulations, addressing piracy concerns related to data privacy, and protecting intellectual property rights can be complex and time-consuming
3. Infrastructure challenged
Despite progress, the infrastructure required to support widespread cloud gaming adoption may face limitations. Scaling infrastructure to meet the increasing demand for cloud gaming services is a problematic
Let us be your companion
Cloud gaming has the potential to revolutionize the gaming industry in Vietnam. It offers accessibility, convenience, and a diverse range of gaming experiences. As more players enter the market and technological advancements continue, the future of cloud gaming in Vietnam holds exciting opportunities for both gamers and industry stakeholders. As a tech-leading company, we intend to harness the power of this technology in the future. We are extremely welcome to collaborate with individuals or organizations that are passionate about this field or better yet, already have a game project ahead.
CONTACT US NOW to get more info on your game projects and publishing consultation
