Shares of Sony and Nintendo collapsed after the launch of video streaming for gamers from Google

Investors are concerned about the future manufacturers of gaming consoles after Google announced its ambitions in the gaming market, writes CNBC. Streaming platform Stadia will allow users to run games directly in the Google cloud, which saves them from having to pay for the console.

What happened

On Tuesday, Google introduced the streaming platform Stadia. According to the company, the platform will allow people to run powerful games on Google servers and stream the process of passing. As a result, users do not have to buy separate consoles and computers for games.
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Already in the course of stock trading on the Tokyo Stock Exchange on Wednesday, Nintendo shares fell by 3.21%, and Sony securities fell by 3.38%. Investors and analysts are concerned about the future manufacturers of game consoles. Nintendo and Sony have long dominated this market with Microsoft.

It is expected that Sony and Microsoft in the coming months will publish details about the release of their next-generation consoles. Prefixes of the previous generation have been sold for about six years. In this regard, the new Google project looks even more important for the development of the industry.

Perspectives

According to IHS Markit, the market for content and services for gaming consoles is growing by 25% per year, in 2018 it amounted to $ 128 billion, and the volume of the console game market for iron amounted to $ 47 billion.

Despite the concerns of some investors, analysts are still more cautious in their estimates. CNBC journalists interviewed several gaming industry experts, and they noted that the arrival of Google is unlikely to quickly dramatically change the situation on the market.

At the moment, not enough information has been published about the cost of access to the Stadia platform, as well as the cost and complexity of developing games for game studios. At the same time, for users who do not want to pay $ 400 for the console in order to run at least one game, Stadia can be an attractive option.

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