Consumers are prepared to pay for the benefits of cloud gaming if bundled with a dedicated 5G connection to secure enhanced quality of content, better ability to stream and more unique experiences.
JERSEY CITY, NJ – April 13, 2022 – Amdocs, a leading provider of software and services to communications and media companies, today released research findings that give a deeper look into consumer expectations around cloud gaming and the metaverse. Gamers have high hopes for the future of cloud gaming, with 79% feeling positive about it and almost half (43%) predicting it will completely change the gaming industry.
The research, which surveyed 1,000 UK consumers who game at least once per week, found that consumers are largely ready for a “post-console” future that pairs cloud gaming with 5G connectivity – and they are willing to pay more for it. 85% would consider bypassing the purchase of new gaming hardware in favour of the cloud and 81% would pay at least £7.60 ($10) per month for additional cloud gaming services if they could ensure a bundled, dedicated 5G connection. In fact, cost (29%) is only the second most important factor gamers consider when choosing a cloud gaming service, with the quality of the content (44%) taking the top spot.
While most (72%) UK gamers already use or plan to use cloud gaming services this year, they are excited about the enhancements 5G connectivity will bring. They are most looking forward to gaining the ability to stream games from any device and location (51%); more unique, interactive AR experiences (41%); and metaverse-based interactive experiences (28%).
On the metaverse, the majority of UK gamers feel positive about its promise – only 18% believe it won’t become popular – but there are barriers to its widespread adoption. 37% think it is too early in its infancy; 36% are concerned about the cost of hardware; and 24% are unsure their internet connection can handle it.
Amdocs’ findings suggest that while 5G holds the potential to enhance the capabilities of cloud gaming and enable more fulfilling consumer experiences with new technologies like the metaverse, there is still work to be done when it comes to awareness. Even among those who game regularly, 22% aren’t sure whether they have 5G access.
Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs, said: “These findings uncover several essential factors, first and foremost the need for networks to be future-ready for in-demand, intensive and seamless experiences – such as evolutions of the metaverse and the supercharging of low-latency cloud gaming. As these experiences become more ingrained in our culture and we begin to explore the potential of a Web 3.0 world, entertainment partnerships and new, flexible monetisation approaches that enable a la carte experiences – coupled with connectivity – will become increasingly critical.”
The New Gamer Report is based on a March 2022 survey from Dynata, which targeted 1,000 UK consumers who reported gaming at least one time per week.
· Read Amdocs’ research findings
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Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers’ innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end-user and enterprise customers. Our 29,000 employees around the globe are here to accelerate service providers’ migration to the cloud, enable them to differentiate in the 5G era, and digitalise and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.3 billion in fiscal 2021. For more information, visit Amdocs at www.amdocs.com
Amdocs’ Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2021 filed on December 10, 2021, and our Form 6-K furnished for the first quarter of fiscal 2022 on February 14, 2022.