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Why China is the perfect place for cloud gaming to succeed

Google Stadia and Microsoft xCloud are pushing cloud gaming, but Tencent could be the real one to watch

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China has more mobile gamers than the entire population of the United States. (Picture: Reuters)

You’d think the idea of playing any game on any device would be something gamers are interested in. Google and Microsoft, among many others, are investing heavily in the hope that they will be. But many are wary of cloud gaming.

Cloud gaming’s promise is why Microsoft, Google and Tencent are all diving in

Cloud gaming means you never have to download a game again. Instead of running on the PC in your house or the iPhone in your hand, games run on servers in the cloud. Your device sends your commands -- run, jump, shoot -- over the internet to those servers, while they send video back to you screens.
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Some say that the latency of playing games in the cloud just won’t be fast enough. Others argue not about the technical aspect, but rather the point of it all. Who wants to play a big, sprawling PC game on a tiny smartphone?

But there’s one country that has all the pieces in place for cloud gaming to take off: China.

China has more mobile gamers than the entire population of the United States. (Picture: Reuters)
China has more mobile gamers than the entire population of the United States. (Picture: Reuters)
While most of the attention has been on Google Stadia and Microsoft xCloud, Tencent has also been working on cloud gaming. China’s biggest gaming company has been talking about letting people go from viewing live streams to playing along with the same streamer with just a click -- without ever having to download the game.
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One of the big reasons China is perfect for cloud gaming? 5G.

To say China is investing heavily in 5G would be an understatement. It’s been a key focus and a point of pride to get there before the West. (You might have heard a little bit of chatter about Huawei’s 5G network equipment.) Local brands are already selling 5G handsets. And telecom providers have begun trials in more than a dozen cities -- with a population of over 167 million people.
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