(Yicai Global) Jan. 3 -- A unit under telecoms provider China Mobile and publisher Shengqu Games are joining hands to set up a studio for cloud-based video games.
The pair intend to build a complete ecosystem for the sector, The Paper cited Shengqu's Chairman Wang Ji as saying at a press conference yesterday. His announcement pushed shares in Shengqu's parent Zhejiang Century Huatong Group [SHE:0002602] up nearly 6.6 percent yesterday and they closed 4.76 percent higher at CNY12.76 (USD1.83) today.
The almost zero latency of fifth-generation communication networks will change the distribution of online games and reduce the technical requirements of gamers' devices, he added, saying there could be over 600 million cloud game players within the next five years. Cloud-based gaming will also pave the way for new formats, like virtual and augmented reality games and more immersive interaction, Wang continued.
The global cloud gaming market was worth USD387 million in 2018, hit USD500 million last year and will reach USD2.5 billion in 2023, according to market researcher IHS Markit predictions based on the performance of 16 cloud game services worldwide.
Shengqu helps move its clients' games to the cloud faster than any company and is internally testing several games on the cloud, Wang said.
Editor: James Boynton