A new survey of 5,000 gamers across the UK, US, Japan, South Korea, and Germany, has revealed a $150 billion revenue opportunity for carriers offering 5G services to gamers, with 79% saying they would ditch their broadband connection for a 5G service that improved speed and latency.
Ribbon Communications, a global provider of real-time communications software and network solutions for CSPs, has released the findings of an independent survey of more than 5,000 “ardent gamers”. The survey was conducted among 5,019 gamers from the US (1013), UK (1003), Japan (1001), South Korea (1000), and Germany (1002), who played for at least three hours per day prior to the COVID-19 pandemic.
“5G-Native networks leverage advanced technologies including network slicing to offer deterministic performance, high speed, and strict service guarantees. These capabilities will help usher in new business and use cases for carriers to capitalize on,” said Patrick Joggerst, chief marketing officer at Ribbon Communications. “The findings of this study prove that cloud gaming, combined with 5G, is a gainful area for carriers to address.”
Cloud gaming and 5G
Based on the extrapolation of this survey data, and publicly available gaming market forecasts from Newzoo, Ribbon Communications claims that the opportunity to provide the high-performance connectivity to enable cloud games could be worth more than $150 billion to carriers deploying 5G services.
“Cloud gaming presents an important and lucrative opportunity for carriers who embrace 5G and deliver the improved service experience gamers crave,” said Lynnette Luna, principal analyst at GlobalData. “The rapid shift to mobile and cloud-based game delivery, combined with the higher data speeds and reduced latency 5G offers, create a better user experience for gamers and a revenue-rich eco-system that carriers shouldn’t ignore.”
Key findings from the research include:
- 58% already pay a premium to their provider to enjoy the best gaming experience possible
- 79% would consider replacing their home broadband and mobile connectivity with 5G for a better gaming experience
- 95% would pay more for this improved experience, with 60% willing to pay 50% more (or $126 per month compared to the current monthly average of $84)
- 58% would switch connectivity provider as soon as they could if a competitor offered a high-quality gaming service with a new 5G subscription
“The research clearly shows that these avid gamers present a highly addressable audience for carriers. They are aware of the internet speeds they receive, understand the detrimental impact of latency on their gaming experience, and are prepared to spend what it takes to negate these issues,” Joggerst added. “Carriers that invest in and build standalone 5G networks will be the first to offer advanced connectivity and will find themselves well-position to form new partnerships with gaming content providers and dominate the 5G cloud gaming sector accordingly.”