How top gaming companies are using cloud computing and co-location data centres

Jamieson Lee Hill, May 24h, 2023

The use of cloud computing and colocation data centers for big gaming brands is widespread across the globe. Let’s have a look at how some of the big brands make use of cloud gaming and colocation data centres.

Introduction

The gaming industry has seen tremendous growth over the past decade, with the introduction of new technologies in cloud computing and the increasing use of colocation data centres. Cloud computing is a form of distributed computing that allows for the delivery of IT services over the internet. It enables gaming companies to store and process data in remote data centres, allowing them to scale their operations quickly and efficiently.

Microsoft

Microsoft recently announced a 10 year agreement with Boosteroid to put their XBOX and PC games into the Boosteroid gaming cloud platform. With 4 million users worldwide, Boosteroid is one of the biggest independent cloud gaming providers in the world today. Boosteroid is in BETA mode at the moment, but the fact that Steam, Epic Games and XBOX titles can be used on the Boosteroid platform is a game changer. Ultimately, games will be able to be played on mobile, pcs, mac and Linux using the Boosteroid cloud. 

Microsoft is on the verge of signing a deal with Activision Blizzard and if that goes through, Boosteroid could also host the global franchise ‘Call of Duty’. This means the number of online players in future could rise to over 150 million,

‘When combined with other partnerships recently announced by Microsoft, this means popular franchises such as Call of Duty will surpass more than 150 million additional players, and make games built by Xbox Game Studios, Bethesda and Activision Blizzard playable on multiple cloud gaming services and subscriptions,’ Microsoft said.

Source: Gameshub.com, May 2023

Also, Microsoft is also on the verge of buying Activision Blizzard in a $69 billion dollar deal which has just been approved by the EU. However, British regulators have blocked the deal in the UK,

“The United Kingdom’s Competition and Markets Authority said in its final report that “the only effective remedy” to the substantial loss of competition “is to prohibit the merger.” The companies have vowed to appeal.”

Source: LA TIMES.com, Apr 26, 2023

Epic Games

Epic Cloud Gaming is a cloud gaming service from Epic Games, the same company behind the hit title Fortnite and the famous Unreal Engine. It allows users to play games on any device with an internet connection without having to download or install them. It works by streaming games over the internet from a server, meaning you can play the latest titles on any device.

Epic Games Colocation Data Centres

Epic Games uses a combination of colocation data centers and cloud computing to support its platform. It operates its own data center located in North Carolina, which includes high-performance servers and networking equipment. This data center provides the physical infrastructure necessary to support the millions of players who access Fortnite each day. 

In addition to colocation, Epic Games also uses cloud computing to provide scalable resources for its platform. The company uses Amazon Web Services (AWS) to host its game servers, content delivery networks (CDNs), and other infrastructure services. By leveraging AWS, Epic can quickly and easily scale its platform to handle increased traffic during peak usage times.

Epic Games Analytics With Cloud Computing

Epic Games also uses cloud computing for analytics and machine learning. The company collects vast amounts of player data, which it analyzes using AWS services such as Amazon S3, Amazon Redshift, and Amazon EMR. This data analysis helps Epic Games improve its game performance, optimise player behavior, and develop new features and content for its platform.

By using both colocation and cloud computing, Epic Games can ensure that its platform is always available and running smoothly, even during times of high traffic. With over 350 million registered users, the scalability provided by cloud computing is essential to Epic Games' success.

Amazon Luna

Amazon Luna is a cloud gaming platform that allows users to stream games on various devices, including Fire TV, Windows PC, Mac, and iOS devices. Amazon Luna leverages colocation data centers and cloud computing to guarantee a smooth and reliable gaming experience,

Amazon Luna uses AWS for its cloud infrastructure, which includes data centers located around the world. By co-locating their servers in these data centers, Amazon can reduce latency and deliver faster responses to user requests. Additionally, AWS provides Amazon Luna with the scalability necessary to handle increased traffic during peak usage times.

Alongside colocation, Amazon Luna also uses cloud computing for game rendering and streaming. When users play games on Luna, the gameplay is rendered on powerful cloud servers and streamed to the user's device over the internet. This approach eliminates the need for users to invest in expensive gaming hardware, as all the processing occurs on Amazon's servers. 

By utilizing both colocation and cloud computing, Amazon Luna can provide a high-performance gaming experience to users worldwide. With the ability to scale up or down based on demand, Amazon Luna can ensure a consistent level of service at all times.

Amazon Luna and Ubisoft’s PC Store

Amazon’s Luna cloud gaming service has a new integration with Ubisoft’s PC game store. This means that PC gamers can now connect their Ubisoft account to Amazon Luna and play select Ubisoft games they own on Amazon’s cloud gaming service at no additional cost.

Steam

Valve's Steam platform, one of the most popular digital distribution platforms for PC gaming, uses a combination of colocation data centers and cloud computing to ensure that their services are always available and running smoothly. The company operates multiple data centers around the world, including locations in the US, Europe, and Asia, which are equipped with high-performance servers and networking equipment. These data centers provide the physical infrastructure necessary to support the millions of users who access Steam each day.

As well as colocation, Valve also utilizes cloud computing to provide scalable resources for its platform. The company uses Amazon Web Services (AWS) to host content delivery networks (CDNs) that distribute game updates, patches, and other content to users worldwide. Furthermore, Valve also uses AWS for its matchmaking system, which pairs players together for online multiplayer games.

By using colocation and cloud computing, Valve is able to provide a reliable, high-performance platform for PC gamers around the world. Valve stated that their "global network of datacenters and edge locations ensures that Steam can quickly and efficiently serve customers wherever they are." With over 120 million active users, Steam's use of colocation and cloud computing is essential to manage the high levels of traffic they get each day. 

The 2022 Cloud Gaming Report

The 20202 report forecasted that the cloud gaming industry is going to grow by over 300%. The total annual cloud spend by gaming companies has increased by more than 60% since 2016,. Also, there are 22 companies ‘who have experienced 100x growth year-over-year’. As these gaming companies grow, they will require additional cloud infrastructure to support higher traffic demands. Furthermore, the gaming market is expanding rapidly worldwide with an estimated three billion plus players across the globe in 2023.

Reflections

Cloud computing  is enabling large gaming brands to develop fully immersive experiences for their gamers. Leveraging cloud-based infrastructure and colocation data centre services, game developers can access powerful hardware resources on demand, allowing them to create more complex games with better graphics and improved performance.

It also allows companies greater flexibility with storage capacity and scalability, being able to expand rapidly without investing in additional hardware and software.  Finally, big brands experience significant cost savings using cloud computing and colocation data centres. 

Also, game developers can ensure that their players’ information is secure and protected from potential cyber threats. By using reliable cloud-based infrastructure and colocation data centres, game developers can ensure that their games run smoothly and stay live at all times. 

With many big brands engaged with colocation data centres and cloud computing, IP House London expects increasing numbers of smaller game developers to come onboard in the near future! With further rapid growth expected, these are certainly exciting times for colocation data centres and gaming companies. 

If you are a gaming studio looking for colocation data centre services and cloud computing, please fill in the form below. Let’s talk!

Sources

1. Amazon. (n.d.). Amazon Luna – Cloud gaming service. https://www.amazon.com/Luna/b?ie=UTF8&node=21250767011
2. Amazon Web Services. (n.d.). Gaming on AWS. https://aws.amazon.com/gaming/
3. Epic Cloud Gaming:  https://medium.com/cloud-believers/enter-a-new-world-of-gaming-with-epic-cloud-gaming-3eeade5c1a4d
4. Epic Games. (n.d.). Fortnite. https://www.epicgames.com/fortnite/en-US/home
5. https://medium.com/cloud-believers/enter-a-new-world-of-gaming-with-epic-cloud-gaming-3eeade5c1a4d
6. Amazon Web Services. (n.d.). Gaming on AWS. https://aws.amazon.com/gaming/
7. Microsoft: https://azure.microsoft.com/en-us/resources/cloud-computing-dictionary/what-is-cloud-computing
8. IBM:    https://www.ibm.com/topics/cloud-computing
9. Ubisoft and Amazon Luna: 
10. https://www.thurrott.com/games/276728/pc-gamers-can-now-stream-ubisoft-games-they-own-on-amazon-luna
11. Valve Corporation https://store.steampowered.com/about/
12. Valve:
13. ttps://steamcommunity.com/groups/steamworks/announcements/detail/2560658870586853000
14. 2002 Cloud Gaming Report:

https://hginsights.com/data-report/hg-insights-intricately-aws-ecosystem-report-in-2022-2