{"id":119844,"date":"2020-10-26T17:15:00","date_gmt":"2020-10-26T17:15:00","guid":{"rendered":"http:\/\/www.gamasutra.com\/view\/news\/372561"},"modified":"2020-10-26T17:15:00","modified_gmt":"2020-10-26T17:15:00","slug":"analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service","status":"publish","type":"post","link":"https:\/\/sickgaming.net\/blog\/2020\/10\/26\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service\/","title":{"rendered":"Analysis: Facebook gears up for the world’s first ad-supported cloud gaming service"},"content":{"rendered":"
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Gamasutra: George Jijiashvili’s Blog – Facebook gears up for the world\u2019s first ad-supported cloud gaming service<\/title> <!--[if lt IE 9]> <a href=\"http:\/\/html5shim.googlecode.com\/svn\/trunk\/html5.js\">http:\/\/html5shim.googlecode.com\/svn\/trunk\/html5.js<\/a> <![endif]--> <!-- CSS --> <!-- link href=\"https:\/\/twimgs.com\/gamasutra\/css\/minified.css\" rel=\"stylesheet\" type=\"text\/css\" \/ --> <!-- Mobile Specific Metas --> <!-- Start Visual Website Optimizer Asynchronous Code --> <!-- End Visual Website Optimizer Asynchronous Code --> <!-- Start HeatMap.me Code --> <!-- End HeatMap.me Code --> <!-- Start: GPT Sync --> <!-- End: GPT --> <!-- Eloqua tracking code --> <!-- End Eloqua tracking code --> <!-- Google Tag Manager (noscript) --> <!-- End Google Tag Manager (noscript) --> <!--Cookie banner code starts here --> <!--Cookie banner code ends here --> <!-- Informa Branding code goes here--> <\/p>\n<div id=\"iribbon-container\" class=\"content-body-wrapper\"> <button id=\"iribbon-title\" title=\"show\/hide\" class=\"inactive\">Informa<\/button> <\/p>\n<div id=\"iribbon-detail\" class=\"ribbon-hide\">\n<div id=\"iribbon-left\">\n<p>Gamasutra is part of the Informa Tech Division of Informa PLC<\/p>\n<\/p><\/div>\n<div id=\"iribbon-right\">\n<p>This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. 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name=\"BodyContent\" --> <\/p>\n<div class=\"page_item\">\n<div><a name=\"twitter_share\" href=\"http:\/\/twitter.com?status=RT @gamasutra: Facebook gears up for the world\u2019s first ad-supported cloud gaming service http:\/\/www.gamasutra.com\/blogs\/GeorgeJijiashvili\/20201026\/372555\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-1.gif\" alt=\"Share on Twitter\" border=\"0\" height=\"20\"><\/a> <span id=\"edit_post_link\"><\/span> <a href=\"https:\/\/www.gamasutra.com\/blogs\/rss\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-2.gif\" width=\"15\" height=\"15\" border=\"0\" alt=\"RSS\"><\/a> <\/div>\n<hr>\n<div class=\"item_body mobile_image_transform\"> <strong><i><small> The following blog post, unless otherwise noted, was written by a member of Gamasutra\u0092s community.<br \/>The thoughts and opinions expressed are those of the writer and not Gamasutra or its parent company. <\/small><\/i><\/strong> <\/p>\n<hr>\n<p>Today Facebook Gaming announced that several free-to-play mobile games will be available via cloud gaming on the Facebook Android app and browser. This appears to incorporate technology from its PlayGiga acquisition into Facebook\u2019s existing \u2018Instant Games\u2019 service (launched in 2016). Instant Games have so far focused on the hyper-casual segment (such as <em>Pac-Man<\/em> and <em>Words With Friends<\/em>), but with cloud gaming, Facebook hinted at more complex mobile games coming to its redesigned \u2018Play\u2019 tab in the future.<\/p>\n<p>Facebook has been ramping up its activity in games – in April 2020, it <a href=\"https:\/\/omdia.tech.informa.com\/OM006127\/Facebook-Launches-Facebook-Gaming-Mobile-App-to-Compete-with-Streaming-Giants\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">launched a dedicated Facebook Gaming app<\/a>, focusing on live video-streaming of games content to compete against Twitch and YouTube, in addition to offering Instant Games that users could play and live stream.<\/p>\n<p>A big emphasis has been placed on managing people\u2019s expectations for Facebook\u2019s cloud gaming initiative, with ex-Oculus Jason Rubin (VP of Play) stating that it is \u201cnot going to overpromise and under-deliver\u201d, and \u201cnot going to try to wow you with the wonders of our data centers, compression algorithms, resolutions, or frames per second\u201d. These were allusions to Google Stadia\u2019s inability to deliver on its grandiose vision, which it promised back in March 2019.<\/p>\n<h2>“Underpromise and overdeliver”<\/h2>\n<p>Facebook is taking an extremely cautious approach, as it looks to avoid the missteps of Stadia. The launch titles are underwhelming, which will not excite dedicated gamers, but Facebook is aware of this. It doesn\u2019t intend to compete against console and PC gaming platforms, but instead continue to target casual mobile gamers \u2013 200,000 of whom are already playing cloud-streaming games per week on Facebook. The ultimate goal of this endeavor is to use gaming to increase user engagement with the Facebook platform and power the company\u2019s enormous ads business.<\/p>\n<p>This announcement gets one step closer to my prediction that Facebook will eventually offer the world’s first ad-funded cloud gaming service. The Facebook Gaming app is currently in the user-acquisition phase; it is offered completely free, without any ads. Facebook is likely to be utilizing the same strategy as it did with Instagram: Build a critical mass, and then gradually introduce monetization via advertising. Facebook\u2019s great strengths in the ad business means it is well-positioned to lead in the in-game advertising market. Other companies are in similar position, most notably Google with Stadia, but it has so far not strayed away from this form of monetization. <\/p>\n<p><em>Facebook, Google, Microsoft and Tencent are sitioned in the in-game advertising market<\/em><\/p>\n<p><em><img loading=\"lazy\" decoding=\"async\" alt height=\"355\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-1.jpg\" width=\"400\"><\/em><\/p>\n<h2>Glimpse into the ‘cloud playable ads’ future<\/h2>\n<p>One of the most intriguing (but overlooked) aspect of this announcement was the launch of \u2018cloud playable ads\u2019 \u2013 a concept which was highlighted earlier this year in Omida\u2019s <a href=\"https:\/\/omdia.tech.informa.com\/OM001144\/Market-Landscape--In-game-advertising--2020\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">Market Landscape In game advertising 2020 report<\/a>. The existing playable ads have already proven effective in not just driving app installs, but also further post-install engagement. This is because the user has already chosen to try, and engage with, the app before a download has taken place. With cloud gaming, Facebook is taking this a step further by \u201cblurring the line between games and ads\u201d. <\/p>\n<h2>Relationship between cloud gaming providers and Apple is increasingly contentious<\/h2>\n<p>Facebook vilified Apple\u2019s restrictive rules around cloud gaming apps on the App Store, with Rubin stating, \u201cApple treats games differently and continues to exert control over a very precious resource\u201d. With a global installed base of nearly one billion iPhones, Facebook, nor other cloud gaming services can afford to miss out on much-coveted iOS users who are, on average, more affluent and spend more on apps and games.<\/p>\n<p>Delivering cloud gaming via a Progressive Web App (PWA) is one interim solution, but due to its limitations (see chart below) Facebook has instead chosen to exert pressure on Apple, hoping it will loosen its rules. In a Twitter exchange with me earlier today, Rubin highlighted that \u201c<a href=\"https:\/\/twitter.com\/Jason_Rubin\/status\/1320704873336197120\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">linking from App 2″ Web is blocked by Apple<\/a>\u201d, making PWA solution undesirable for Facebook, despite it potentially suiting Amazon\u2019s and Microsoft\u2019s cloud gaming services. I believe that Apple\u2019s stance on cloud gaming apps on the App Store is unsustainable, particularly as other content-streaming services are already on App Store (such as Netflix). Apple remains under pressure from game companies, gamers, and the EU antitrust probe on the App Store billing rules \u2013 leading me to believe that Apple will loosen its restrictions further in 2021.<\/p>\n<p><em>Cloud gaming service providers can circumvent Apple App Store\u2019s restrictions and rules by running the service as a Progressive Web App (PWA), but this brings its own set of challenges and limitations<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt height=\"410\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-2.png\" width=\"646\"><\/p>\n<\/p><\/div>\n<hr>\n<div class=\"hide-phone\">\n<h3>Related Jobs<\/h3>\n<div class=\"stories_item\">\n<div class=\"thumb\"><a href=\"https:\/\/jobs.gamasutra.com\/job\/assistant-professor-game-development-overland-park-kansas-34608\"><img decoding=\"async\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-2.jpg\" alt=\"Johnson County Community College\" width=\"120\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"stories_item\">\n<div class=\"thumb\"><a href=\"https:\/\/jobs.gamasutra.com\/job\/senior-unity-engineer-remote-eu-time-zone-london-england-34629\"><img decoding=\"async\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-3.png\" alt=\"CVEDIA\" width=\"120\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"stories_item\">\n<div class=\"thumb\"><a href=\"https:\/\/jobs.gamasutra.com\/job\/lead-gameplay-programmer-burbank-california-34607\"><img decoding=\"async\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-3.jpg\" alt=\"Insomniac Games\" width=\"120\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"stories_item\">\n<div class=\"thumb\"><a href=\"https:\/\/jobs.gamasutra.com\/job\/lead-engine-programmer-burbank-california-34606\"><img decoding=\"async\" src=\"https:\/\/www.sickgaming.net\/blog\/wp-content\/uploads\/2020\/10\/analysis-facebook-gears-up-for-the-worlds-first-ad-supported-cloud-gaming-service-3.jpg\" alt=\"Insomniac Games\" width=\"120\"><\/a><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<hr><\/div>\n<p> <!-- InstanceEndEditable --> <\/div>\n<p><!--end contentbox-->\n<\/div>\n<p><!--end span-16--> <\/div>\n<p> <br class=\"clear\"> <\/div>\n<p><!--end span-21--> <!--begin right sidebar--> <!--end right sidebar--> <!– <\/div>\n<p> Extra Div –> <!-- Beginning Sync AdSlot 21 for Ad unit Gamasutra\/\/smartphonetablet ### size: [[8,2]] --> <!-- End AdSlot 21 --> <!-- Beginning Sync AdSlot 22 for Ad unit Gamasutra\/\/smartphonetablet ### size: [[8,4]] --> <!-- End AdSlot 22 --> <!-- Beginning Sync AdSlot 23 for Ad unit Gamasutra\/\/smartphonetablet ### size: [[4,4]] --> <!-- End AdSlot 23 --> <br class=\"clear\"><\/p><\/div>\n<p><!--end content-body-wrapper--> <\/div>\n<p><!--end container--><br \/>\n<!--begin footer--> <!--end footer--> <!-- SiteCatalyst code version: H.21.\nCopyright 1996-2010 Adobe, Inc. 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Informa PLC’s registered office is 5 […]<\/p>\n","protected":false},"author":2,"featured_media":119845,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-119844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/119844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/comments?post=119844"}],"version-history":[{"count":0,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/posts\/119844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/media\/119845"}],"wp:attachment":[{"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/media?parent=119844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/categories?post=119844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sickgaming.net\/blog\/wp-json\/wp\/v2\/tags?post=119844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}