Amazon Gaming Chief Foresees Console-Free Future as Hardware Costs Surge

Amazon's head of gaming, Jeff Gattis, has told the BBC that the increasing expense of gaming technology is likely to push consumers toward streaming games online rather than purchasing dedicated consoles. He noted that streaming technology has advanced considerably in recent years, making it a more practical option than it once was, though he acknowledged that some consumers will continue to buy their own hardware.

Cloud gaming enables players to stream and play titles from remote servers using a phone, tablet, or controller, eliminating the need to download and run games on a local PC or console. While the concept has long been heralded as the future of video games, earlier attempts have struggled to achieve broad adoption — most notably with Google shutting down its Stadia service in January 2023 after launching it in November 2019.

Amazon Integrates Luna Into Prime Video

Gattis made his remarks as Amazon announced it is bringing its cloud gaming service, Luna, directly into the Prime Video application, placing it alongside the platform's television shows and films. Luna is already included as part of a Prime subscription, but until now it has largely functioned as a standalone destination. Under the new integration, users in the United States and United Kingdom will be able to access Luna through a "Games" tab on Prime Video via Fire TV devices.

Gattis argued that a substantial untapped audience exists beyond traditional console owners — the demographic Amazon is aiming to reach. He pointed out that between two and a half and three billion people play games globally, yet only a small fraction of them own dedicated gaming hardware. Streaming, he suggested, could appeal to individuals unwilling to spend hundreds or even thousands of pounds on a console or gaming PC.

"As hardware becomes more expensive, and as streaming technology continues to improve, I think you'll naturally see more people asking whether they actually need that dedicated device," Gattis said.

Recent years have seen gaming hardware prices climb as component costs rise. Sony and Microsoft have both raised the prices of their consoles, while Valve has priced its new Steam Machine starting at £879.

Obstacles Remain for Cloud Adoption

Christopher Dring, editor-in-chief and co-founder of The Game Business, said there is likely an audience interested in playing high-end titles such as the upcoming Grand Theft Auto 6 but discouraged by the technical requirements. However, he noted that streaming still faces several hurdles, including the fact that many premium games still require a controller.

Dring also pointed to the subscription model as a potential sticking point for major games publishers, given the impact it could have on traditional sales, where revenue is significantly higher. He expressed doubt that consumers would be willing to pay a game's standard cover price — typically £60 to £70 — merely to stream a title.

Joost van Dreunen, a professor of games business at NYU Stern, said cloud gaming has yet to reach mass market adoption due to several factors, including "latency issues, inconsistent experiences, and the absence of a robust business model." He observed that gamers are willing to sacrifice some visual fidelity for convenience, but not to pay premium prices for something they do not own and that stutters when the Wi-Fi connection dips.

However, van Dreunen suggested that the rising cost of consoles could eventually shift the landscape. He noted that, for the first time in the industry's history, consoles are becoming more expensive toward the end of their lifecycle rather than cheaper. While he remained skeptical that this would immediately drive large numbers of players to the cloud, he predicted a gradual adoption of alternatives.

A Crowded but Unproven Market

Several major companies already offer cloud gaming as part of their subscription services, including Sony and Microsoft, yet consumers continue to prefer installing games on their own machines. Google Stadia was once promoted as a "Netflix for games," but the company ultimately shut it down, stating it had not gained the traction with users it had hoped for.

Cloud gaming also requires a sufficiently fast and stable internet connection, which remains a barrier for many potential users. Despite these challenges, Amazon is betting that convenience and cost savings will increasingly win over consumers as hardware prices continue to rise.

As the gaming industry navigates these shifting dynamics, the question remains whether cloud streaming can finally deliver on its long-promised potential — or whether the console will prove more resilient than its critics expect. Share this article with your fellow gamers and let us know where you stand on the future of cloud gaming.

Source: BBC Technology