Associate professor from University College London Joost Rietveld sent a letter to the British regulator about the deal between Microsoft and Activision Blizzard. In it, the scientist explained why cloud gaming is not a separate market.

For reference: the regulator fears that the purchase of Activision Blizzard will harm competition in the cloud gaming market.

According to Ritveld, existing cloud gaming services cannot be combined into a single, well-defined market. He pointed out that there are now four types of such gaming.

▪️Cloud gaming as a function is an additional function as part of a large service. Example: Game Pass.

Cloud gaming as a platform is an independent service that distributes games for streaming through the cloud. Example: Amazon Luna or Google Stadia.

Cloud gaming as an add—on is a cloud streaming technology with which you can play games already purchased on other sites. Example: GeForce NOW.

Cloud gaming as an entry point for business — service providers that provide technologies for creating a business in the cloud sphere. Example: Ubitus.

In conclusion, Rietveld added: “The willingness of consumers to pay for independent cloud gaming services is low, and this is perhaps the most convincing sign that cloud gaming should not be considered as a separate market.”