How does cloud gaming work? Guide and Definition (2024)

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Cloud gaming, according to the many companies that are starting out in this field, is the future of gaming. Even if that means going a bit far - local gaming will dominate for several more decades - cloud gaming could be a serious alternative in a few years. Some services, like Shadow and PlayStation Now, are proof of this.

The technology used in cloud gaming has existed for many years. So it's not a lack of technology that has stopped cloud gaming from reaching the general public. Infrastructure, network capacity, and remote input technology play a big role in making your gaming experience seamless, not just your Internet access speed — though we've got a few tips for speeding up your Internet connection.

In this guide, we'll explain how cloud gaming works so you can understand if this solution is right for you. Additionally, we are going to discuss some of the resulting problems, as well as the limitations of this technology in its current state. Along the way, we'll show you a few options from our The best guide to cloud gaming to illustrate what we are saying.

What is cloud gaming?

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Before getting into how cloud gaming works, you need to understand what it's all about. While “cloud gaming” is the buzzword, it could also be called “remote computing.” Essentially, a cloud gaming platform allows you to access a computer remotely, offering a complete desktop experience or limiting it to a simple game launcher.

In effect, you are sending commands to the remote machine, for example by moving your cursor or typing in your password. The remote computer receives this command and executes it just like any normal computer. What's happening on the remote computer is then transmitted to you continuously, and with a small amount of latency, you can feel like you're in real time.

As is the case with streaming platforms like Netflix, cloud gaming services have adopted different video encoding methods. This allows platforms like Shadow or Vortex to adapt the video stream according to your Internet speed. If the connection is lower than the right bit rates for the game, the video will show more compression artifacts.

In short, cloud gaming is a video stream that you can control. On some platforms, that means you can control a full desktop experience, while on others, it's limited to the game itself. This is a basic overview, but things are a bit more complex than that. Let's take a closer look at how cloud gaming works and what its limitations are.

How does cloud gaming work?

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Cloud gaming is pretty simple if you understand how streaming platforms like Netflix work. When you connect to Netflix, you're sending a request to a server that hosts the content you want to stream. Once that request is sent, Netflix starts providing you with the content stored on the server in a stream, hence the name (Netflix gaming is a bit different, though).

You can do the same thing with games, just do it a few times. When you play a video game, you're constantly entering commands, and the game is responding to them. For example, on a PC, pressing the “W” key tells your character to move forward and pressing the “A” button on an Xbox can tell your character to jump.

When playing a game on the cloud, you're still entering commands, but you're doing it on a network. A remote computer is running an instance of the game you are playing and the display is streamed to you. Your inputs are sent over the network, the remote computer responds to the command sent, and the feed you see is updated.

All of this happens in a matter of milliseconds, which you can sometimes notice (we'll get to that in the next section). While all cloud games work, to some extent, as described above, not all platforms deliver content in the same way.

For example, Shadow allows you full access to a remote Windows machine, while Vortex limits your access to the DRM platform used by the game. Both platforms broadcast a stream over your network but allow different access to this remote machine.

The machines you connect to are typically servers located in a data center. In the case of PlayStation Now, you're probably connecting to a few servers located in the data centers that manage the PlayStation Network. In the case of Blacknut, this is probably server space rented from an existing cloud network like AWS.

The location of the data center is important — we'll talk about that in the next section — but so is the infrastructure. Many cloud gaming services use shared servers. This means that the server is equipped with a lot of power in the CPU and graphics departments, but that users have to share these resources.

Because resources are limited, factors such as the number of users accessing the server cause slowdowns. This can result in stutters, decreased image quality, and lags. While it's easy to attribute these issues to a slow Internet connection, the problem usually lies in how servers and users are managed.

However, some cloud gaming services, like Shadow, use dedicated resources. For example, there may be 10 GTX 1080 graphics cards and their accompanying processors in a single server, but server resources are segmented and dedicated to a single user.

In the case of Shadow, you get dedicated storage, RAM, and graphics, and unsurprisingly, the quality is superior to the competition, even with a modest connection.

Managing Latency and Bandwidth for Cloud Gaming

The two factors to consider when talking about cloud gaming are latency and bandwidth. Gamers are likely familiar with latency or, as it's often called, “ping.” Ping is the time it takes, usually in milliseconds, for an entry to be sent across a network back and forth.

Latency is used to measure the quality of your connection when playing online because only the requests you send count. If you are playing an online game with a friend, there are two local sessions of that game, one for each of you.

As a result, no game data needs to be transferred over the network. You all have access to the same textures, music, and animations. The only data that needs to be transferred over the network are inputs.

For example, if you play a game of Counter-Strike: Global Offensive with a ping of 85 milliseconds, and you shoot your friend in-game, that means it takes a total of 85 milliseconds for that input to be sent to your friend and returned to you.

Latency is primarily a factor in the distance between a server and your physical location. The closer you are to the server you are connecting to, the lower the latency, in most cases.

In the case of online games, bandwidth, that is, the maximum amount of data that can be transferred, does not matter, because you are only carrying small pieces of data. On the other hand, for cloud gaming, bandwidth is an essential parameter.

As with online gaming, latency is important in determining how long it takes to record your entries. However, unlike online games, a lot of data has to be transferred over the network.

The game is rendered on the remote server, which means that the server's resources actually produce the image. Then, a video stream of this rendering is sent to your machine. This feed is updated based on your inputs.

That's why cloud gaming platforms don't require high download speeds. Shadow requires the most at 15 Mbps, but we've seen as few as 5 Mbps. For comparison, Netflix recommends a download speed of 25 Mbps for 4K video streaming. Your bandwidth and latency are much more important.

Overloaded networks that don't have enough bandwidth will cause problems, as the responsiveness of your inputs is critical when playing on a network.

Comparing again with video streaming, bandwidth is not a major issue. A limited amount of bandwidth may still produce a reasonable result because you are not sending inputs to the video stream. It doesn't need to respond, so you won't notice a difference.

However, due to the constant evolution of games, this responsiveness can make or break the experience. You need a solid internet connection and nearby data centers for cloud gaming, that's indisputable. However, just as important is how quickly the remote computer can respond to your requests.

Cloud gaming limits

The biggest limitation of cloud gaming is the infrastructure. Currently, many cloud gaming services use existing data centers or rent space from a large cloud to run their platform, which is difficult to control. Furthermore, cloud gaming has experienced strong growth in recent years, causing many businesses to market their products too quickly.

A quick look at the search terms confirms this. While the term “cloud gaming” only has a search volume of 34,000 per month, according to Ahrefs, popular platforms like Stadia have a much higher search volume. For example, “Stadia” has an overall search volume of 233,000 per month and “GeForce Now” has a search volume of 237,000 per month.

Due to the rush to popularity, a complete cloud gaming service has not yet been realized. Shadow is approaching it with limited availability and dedicated hardware, but even platforms like PlayStation Now, which have been around for a few years, are struggling to provide a consistent experience. Services like Loudplay clearly demonstrate a mixed mentality.

There have been some steps in the right direction, though. The availability of fiber optic internet in the United States has ensured high bandwidth, and the rise of dual- or triple-band routers ensures that you're sending data on a frequency that isn't overloaded by traffic.

The biggest limitation, it seems, is that of remote machines. Shared server resources and low network capacity lead to a poor gaming experience, which is rightly associated with cloud gaming at the moment. However, with options like Stadia, GeForce Now, and Shadow, a “wherever you go, do anything” cloud gaming experience could well emerge.

Final Thoughts

While cloud gaming hasn't been fully realized yet, it's much better than it was a few years ago. PlayStation Now offers an impressive experience for Sony fans, while Shadow presents near-zero-latency gaming on PC. Other options, like Vortex and Blacknut, are good, but far from the best.

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