Tag: Cloud Gaming

Cloud Wars: AWS vs. Azure vs. Google Cloud Platform (“GCP”)

Cloud Wars: AWS vs. Azure vs. Google Cloud Platform (“GCP”)

It’s all about the cloud. Given that Amazon’s AWS business unit and Microsoft’s Azure business unit are the two finalists for the Pentagon’s $10 billion “JEDI” contract, we thought it timely to publish AWS, Azure and GCP revenues for the 12-month period ending 12/31/18. As per usual, see the video and image content “below the fold.”

Amazon (AWS): $25.7 billion. Amazon reports AWS figures in its SEC filings. The $25.7 billion figure represents 47% year-over-year growth.

Microsoft (Azure): $6.5 billion. This figure is our estimate based upon certain public disclosures made by Microsoft. We estimate that Azure revenues grew 82% year-over-year.

Google (GCP): $4.5 billion. This figure is our estimate based upon certain public disclosures made by Google. We estimate that GCP revenues grew 32% year-over-year.

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Apple Will Have A New CEO Within 5 Years<span class="badge-status" style="background:red">Premium</span> 

Apple Will Have A New CEO Within 5 YearsPremium 

Apple will have a new CEO within 5 years. You may thank Apple CEO Tim Cook and former Microsoft CEO Steve Ballmer.

Microsoft shares flat-lined from 2001 to 2013 during a series of flubs including being late to the Internet, late to mobile, late to the cloud, late to AI, slow to capitalize on the Surface technology it had pioneered in the early 2000s and refusing to partner with others. Former Microsoft CEO Steve Ballmer and co-founder Bill Gates had a semi-public boardroom breakup, but not before Ballmer rushed through the ill-fated Nokia acquisition. This 12-year period where MSFT shares were as flat as the Bonneville Salt Flats served as a very public teachable moment (or decade). No CEO in the Bay Area wants to have their own Microsoft moment. Apple is at risk of suffering a similar fate under caretaker CEO Tim Cook. Mr. Cook operates at a pace that puts AAPL at a disadvantage, not to mention some of the strategic blunders (we address below) which may not be reversible. While 5G may boost iPhone sales, we are well beyond the point where the iPhone may save the day over the long-term. We provide our 3 key strategic recommendations for kickstarting Apple’s long-term growth.

Google “Stadia” – Cloud Gaming’s New Giant

Google “Stadia” – Cloud Gaming’s New Giant

Last week we wrote about autonomous video games where visual elements of video games are self-created via machine learning. This week’s news is equally inspiring whereby Google announced its massively-scaled cloud gaming entry “Stadia” which perhaps only Google could pull off. See our “Key Takeaways” and more below.
    • Revenue model and pricing were not disclosed. We believe a subscription revenue model with in-game purchases. Stadia to be released at year-end 2019.
    • Custom AMD GPUs will power Stadia. 4K resolution streams at 60 frames per second (“fps”), with surround sound. 10.7 GPU teraflops, compared to 4.2 and 6.0 from a PS4 Pro and Xbox One X, respectively.
    • Market Opportunity: Approximately 2.5 billion gamers globally (TEK2day estimate).
    • Content Consumption: More than 50 Billion hours of gaming content watched in 2018.
    • YouTube and Google Pay integration: Gamers may access games from any device with a Chrome browser (more than 2 billion people with Chrome browsers and GOOG plans to support non-Chrome browsers over time), and an Internet connection. No console required. Stadia will integrate with YouTube. More than 200 million logged-in YouTubers watch games each day – a built-in Stadia audience. Games will be tagged with a “Play Now” button so that users may jump in immediately. YouTube is the most popular social media platform among teens (see the table below or access full study HERE). Stadia’s gaming activity will only strengthen YouTube’s popularity and provide more data inputs to GOOG’s best-in-glass machine learning capability. Stadia will also integrate with Google Pay.
    • More on YouTube: Over 1.9 Billion logged-in users visit YouTube each month and every day people watch over a billion hours of video and generate billions of views. More than 70% of YouTube watchtime comes from mobile devices. (source: YouTube).
    • Minimal friction to the User Experience: At launch, gamers may access Stadia across desktops, laptops, TVs, Chromecasts, tablets, and phones. Stadia will support keyboard and mouse input as well as controllers. Users may switch screens during game play.
    • Competitors: Amazon is expected to launch a cloud gaming service that will leverage the Twitch streaming platform and AWS. Microsoft is expected to do the same later this year via Xbox. Walmart may jump into the fray as well.
    • Unique AI & ML capability: Sure Amazon’s cloud – AWS – has Google’s scale. However, Google is the undisputed AI and Machine Learning leader, which ought to translate into a competitive edge for Google as it relates to the in-game experience as well as service delivery. Games are rendered in real-time in Google’s cloud without input latency. Games reside in Google’s data centers and won’t reside on the public cloud.

Assassin’s Creed® Odyssey: Stadia is interesting not only because of its scale, real-time game rendering and a whole bunch of “firsts”, but also because Stadia will leverage and benefit other elements of Google’s product family including YouTube (especially YouTube), Google Pay, Google’s Cloud and Google devices (Chromebook, Pixel, etc).

Move across devices during real-time game play (Stadia Keynote 03-19-19)

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The Age of Autonomous Video Games

The Age of Autonomous Video Games

The gaming industry – the largest segment of the broader entertainment industry – continues to grow and evolve. Google is set to join Technology giants Amazon (Twitch) and Microsoft (Xbox) in the gaming space – formal announcement coming on March 19th. Not only are the industry players changing, but so is the underlying AI technology. Autonomous game design is here.

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