2 weeks Ago By Destro
Shares 0 0 0 0 0 0 0 From living rooms to being on the move, to console and mobile devices, the video game industry is evolving like never before. Video games have become more immersive and interactive, benefiting developers, studios, and players alike. Valued at approximately $221 billion in 2024, the global gaming market is projected to grow by 6.
5% annually through 2033. Since the advent of video games from the 1970s, the industry has evolved based on innovations and new technologies that have transformed how games are created, played, and experienced. In the era of Gaming 1.
0, the challenge was in hardware limitations, as games were simple, offline, and confined to local play on home consoles or arcade machines. The transition to Gaming 2.0 was marked by the rise of online multiplayer games, immersive 3D worlds, mobile devices and consoles capable of connecting players globally.
Advancements in hardware and digital connectivity, increasingly higher quality graphics, faster response times, and richer gameplay, have now created greater demands and expectations among players (consumers). Today, the gaming industry is entering the Gaming 3.0 era, driven by AI (artificial intelligence), AR (augmented reality), VR (virtual reality), and cloud gaming.
This shift goes beyond better graphics or larger worlds, creating entirely new dimensions of gameplay and immersion. At the latest Game Developers Conference in San Francisco, Tencent Games shared some of the latest innovation in games development, including F.A.
C.U.L, an artificially intelligent companion which you can speak to as if it was human, enabling more realistic gameplay in first-person shooter scenarios.
But with breakthroughs becoming more frequent, the traditional approach to upgrading hardware or incrementally improving online infrastructure can no longer keep pace with game advancements. Evolving Demands on Cloud As gaming enters the era of AI, VR, and AR-driven experiences, the significance and requirements of cloud infrastructure within the industry are undergoing a transformation, as AR and VR experiences require heavy real-time rendering, while AI-driven games depend on instant processing. This brings about new challenges for developers and players.
According to a report by Technavio , , network latency between games poses the biggest holdback, even as the market for AI use in games is expected to grow by 42.3% CAGR over the next four years . In eSports, where even milliseconds of delay can change outcomes, achieving sub-50ms latency requires optimised networks and edge computing to minimise distances between players and servers.
And with the concept of playing anywhere and everywhere, global scalability emerges as another crucial aspect. When blockbuster games that leverage AI or VR launch simultaneously across regions, they can trigger massive traffic spikes that cloud systems must handle flawlessly, asdowntime on launch day risks jeopardising millions in marketing spend and years of development. Growing game complexity heightens security risks, with billions lost annually to cyberattacks, cheating, and breaches.
Meanwhile, the growth of cross-platform gaming calls for seamless transitions across game consoles, PCs, and mobile devices to support the demands of players. The next generation of gaming demands robust, end-to-end security to safeguard player data and ensure fair play, along with cloud solutions that are flexible, architecture-agnostic, and support diverse technologies and platforms. Not All Clouds Are Equal Leading cloud providers have been quietly preparing for this surge in demand by expanding their reserve bandwidth, availability zones, and Points of Presence.
However, games developers are increasingly realising that robust networks alone are not enough—they also require gaming-specific solutions to stay ahead. In response, some cloud providers have introduced solutions designed to meet the complex needs of today’s market while anticipating the demands of the Gaming 3.0 era.
One such example is Tencent Cloud, which has its foundations in Tencent, a company that has built a strong reputation as the largest video games company in the world by revenue. This provides Tencent Cloud with a unique advantage as Tencent has been behind major titles such as Honor of Kings, which has almost 100 million daily active users. These titles have not only been supported by Tencent Cloud’s infrastructure, but it has also allowed the company to invest, optimise and develop gaming specific cloud solutions over the years to serve the industry.
Today, Tencent Cloud supports multiple third-party developers to go global, including Wuthering Waves by KUROGAMES and Reverse 1999 by Bluepoch , as well as popular gaming titles in the global market like The Bornless by Cathedral Studios , and Lucky Defense by 111Percent Inc. Solutions for Gaming 3.0 Developers Tencent Cloud’s comprehensive suite of gaming cloud solutions such as Game Multimedia Engine (GME), Tencent EdgeOne, Anti-Cheat Expert (ACE) and WeTest, as well as its over 20 years expertise in serving the industry, has differentiated it as the only Asian vendor in the Leader quadrant of the “ Omdia Market Radar: Cloud Platforms for Games, Asia & Oceania – 2025” , alongside other leading vendors like AWS, Microsoft and Google.
One solution designed with the Gaming 3.0 trend in mind, is Tencent Cloud’s EdgeOne platform. It integrates AI technology to deliver AI@Edge capabilities like Large Language Model (LLM) training, real-time content generation, and AI-driven caching.
By deploying AI models at the network edge, it enables low-latency interactions, adaptive gameplay, and personalized content, ensuring immersive and seamless gaming experiences. Another is MagicDawn, a cross-platform, multi-engine game Global Illumination solution. By combining AI-powered asset processing with cloud baking, it is able to efficiently render high quality lighting and support hybrid semi-dynamic lighting for time-of-day changes.
Other solutions include advanced DDoS protection and a comprehensive range of multiplayer tools and services, including chat, voice communication, leaderboards, and anti-cheat services. For developers demanding flexible and cloud-based environments, resources on offer include multiple architecture support for different platforms, a proprietary DevOps platform, and advanced tools such as the “Superman Animation Pipeline”. These resources streamline workflows, allowing developers to focus on creativity while managing technical complexity.
The Future of Cloud Infrastructure in Frontier Gaming The rise of frontier gaming experiences is reshaping the industry and driving a significant shift in the demands placed on cloud infrastructure. As AI, AR, VR, and cloud gaming become more central to the gaming experience, the need is not only for a secure, reliable and scalable infrastructure, but also tailored solutions. Cloud providers must rise to the occasion by delivering solutions that not only meet today’s challenges but are also designed for the needs of frontier gaming experiences.
At the same time, games developers need to carefully consider how their choice of cloud provider relates to their overall tech stack and workflow, particularly for live service games. This may involve leveraging cloud platform capabilities and integration with solutions designed for games developers. As the industry moves towards a cloud-native future, the partnership between game developers and cloud providers will be more important than ever.
With the right cloud infrastructure and solutions, developers can get ahead and capitalise upon this new era of Gaming 3.0. Destro When it comes to providing the right hardware at the right price, Destro is the man of the hour.
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