The Current State of GEForce Now

Nvidia has been at the forefront of PC gaming. The launch of GeForce Now, its cloud gaming service, made it even more recognizable. 

GeForce Now allows users to use its cloud platform. This is to ensure that the game can be played on any device, even where the games are not available. It’s an open platform enriched with high-end GPU architecture using its program, Game Ready Driver. 

Game Ready Driver refers to the program that, when installed, can offer the best gaming experience to the users for all the new releases. 

Offering real PC games, GeForce Now also provides the scope of using a keyboard and mouse while playing. At the same time, it comes with optimization for game controllers as well.  

Popular games available include Fortnite, Destiny 2, Path of Exile, The Witcher 3: Wild Hunt, Counter-Strike: Global Offensive, Rocket League, League of Legends, Apex Legends, Dota 2, and much more. 

Here are some of the games available on GeForce Now.

Source: IDG Connect

GeForce Now Current Business Model

GeForce is operating a business strategy that’s well thought out. It offers an exclusive cloud gaming service that provides access to a huge range of free-to-play games. 

Earlier on, gamers had to pay for Nvidia allowed devices for playing new video and PC games. As the players require having a device that supports Nvidia GTX 1080 GPU, they had to invest at least $1200, which made gaming costly. 

Unlimited Access to the Game Library

To make it cost-effective for the gamers, Nvidia GeForce Now follows a subscription-based business model that offers the users unlimited access to the game library. To be specific, one can explore a huge number of games from over 50 publishers, which can be instantly played upon being owned. 

The cloud gaming service of Nvidia GeForce Now allows the users to connect with the library of games that they already own in their Steam accounts. Simply by connecting to the digital PC game store, users can stream from their game library. 

The intention here is to allow gaming enthusiasts to use their already purchased library of games, so they don’t have to repurchase the games to use the service. 

Interestingly, through the expansion of instantly accessible games, one can find beyond 1,000 games that can be enjoyed through one-session installations.

However, the time has finally come for the removal of the waitlist and making GeForce Now available for as many gamers as possible. The most strategic part from a business perspective is that there will be the option of both free and premium experience.  

One can enjoy standard access to the GeForce Now server for the free membership, along with a one-hour session. Moreover, there is no constraint over the number of sessions as well that can be played.

Along with the free option, there is also the scope for the gamers to upgrade to the premium experience. These members can have priority access to GeForce Now servers. 

Also, gamers can have extended sessions of around six hours and enjoy RTX’s explicit scope (ray tracing) content.

Nvidia’s Strategy

Nvidia’s strategy is to attract more users by offering a premium experience through its Founders membership. The initial three months are offered absolutely for free. A later discounted price of around $5 per month is applied for the entire of 2020. 

Above all, both memberships will be equally effective with any device one has; it doesn’t need any explicit hardware.

Through its cloud gaming service GeForce Now, the company aims to address a bigger audience group. These aren’t regular gaming enthusiasts or those having no experience in a PC game. Starting from automation, infotainment to traditional digital media, it sees opportunities everywhere.

How Do They Make Revenue?

GeForce Now, the cloud gaming platform, earns its revenue mainly through membership programs. To access Founders’ GeForce Now membership program, users have to pay a membership fee of $4.99 every month. 

This subscription gives users access to single session installs as well as the Steam library. It enables users to stream games from any device. 

Also, it earns revenue through its own GeForce Now enabled GPUs (Graphics Processing Units). For example, the Nvidia GeForce GTX 1080 is a GeForce Now enabled GPU. 

Besides, it also comes with Nvidia Tesla P100 GPU. The company is also launching for such GPUs to earn revenue. 

In 2019, some reports suggested that a new T10-8 GPU with 16GB of virtual RAM will support GeForce Now RTX servers. 

GeForce Now Content

Nvidia GeForce Now’s strategy seems different. It doesn’t possess a library of games like PS Now or Xbox Game Pass. What distinguishes it from the rest is that it doesn’t demand a compulsive purchase to get started with the streaming. This lets users connect with Steam. 

However, it is quite true that GeForce Now’s library of compatible games is somewhat nominal due to Nvidia’s ‘opt-in’ policy. But the real struggle for GeForce Now is its ability to partner with game developers. 

It is important to note that many renowned developers and publishers dissociated their names from the services. This included big names like Warner Bros, Interactive Entertainment and Xbox Game Studios

The good news though is that the likes of Ubisoft and Epic Games are still relatively intact with the platform. This provides a classic collection of the games. 

Source: NVIDIA

GEForce Now Pricing

At present, Nvidia GeForce Now comes with the Founders tier as its only paid subscription at $4.99 a month. There is a priority login time of six hours, and it allows RTX in its game that meets well with this feature. 

The prices are likely to grow as the service matures. It is unlikely though that the service would exceed its competitor’s pricing of $10 per month. 

Streaming Quality

Nvidia GeForce Now has a major technical uplift with its gaming segment as far as performance is concerned. GeForce Now is enriched with DLSS 2.0 RTX hardware support, which ensures simpler framerates and incredible graphical performance.   

As far as support is concerned, GeForce Now works with most of the regularly used devices. These include Windows laptops, Chromebook, Macs, Android devices, and Nvidia Shield TVs.

For 720p60 game streaming, at least 15 MBPS of internet connection is required. For 1080p60 streaming, at least 25MBPS is required. This means one either needs a wired or a 5 GHz WI-Fi connection to their router.

Source: Fudzilla

Subscribers

There are currently 300,000 subscribers with the Beta edition of Nvidia GeForce. This makes it the biggest Bring Your Own Game (BYOG) service available internationally, which will soon cross the 1 million mark. 

Nvidia is expected to garner a vast segment of the BYOG gaming market through its commercial launch, even having a free tier along with nominal monthly pricing. This year, it is expected to grab an 18% share of the massive 57 million BYOG cloud gaming subscription market. 

Even in the free subscription, gamers can enjoy the supported games at 60 fps on Full HD. However, the major drawback is that Nvidia boots the user off the server each hour. But as there are unlimited sessions, so one can come back, re-join, and resume playing. 

As discussed above, subscribers get a six-hour session in the case of Founders subscription, along with the privilege of subscribers’ emphasis in the line-up that can lower the waiting hours significantly. Here, the users can enjoy RTX features, improving the lighting effects magically of the supported games.    

The United States and Europe are indeed the most prominent user bases. It is expected to gain a significant user base in other crucial parts through competitive pricing, including North America, Russia, Japan, Korea, Europe, and South Korea.   

Competition

Nvidia GeForce Now is having no scarcity in competition, with major competitors like Xbox Game Pass and PS Now. However, Nvidia GeForce Now eyes opportunity through its GPU-based cloud. It is currently operated with nine data centers in North America. 

The company’s competitive pricing also looks significant to confront the rivals, initially offering free premium membership for three months. Also, it keeps pricing reasonably low at $4.99 per month. 

The free membership strategy addresses the challenge of maintaining the user base of GeForce Now with service transitions all through beta to complete commercial deals. 

Competitive Advantages 

Along with cheap monthly pricing at below $5, it offers priority access to the servers to premium subscribers, allowing them to enjoy 6 hours of non-stop session. Also, there is an opportunity to access most advanced RTX GPU-based servers in the cloud as it becomes available. 

Moreover, it does not depend upon simply maintaining a vast library as its competitors. Despite the dissociation of many notable names, it still has 50 prominent publishers and a massive variety of games. Moreover, the technological advantage that it provides makes it one of the most distinguishing among competitors.  

Weaknesses

Of course, GeForce is not a perfect service. Many users have reported unsatisfactory results regarding the quality of streaming. Moreover, it demands significantly strong internet connectivity. 

Though it supports most of the devices, a minimum of 15 Mbps speed is essential. In fact, it demands 25 Mbps connectivity for 1080p60 streaming. This means one must go with either a wired or 5 GHz Wi-Fi connectivity with the router.

Short-term Plans in the Industry

Nvidia focuses on refining its own GPU based cloud service. As discussed, the company is establishing a partnership with Global Telcos to establish itself in comparatively competitive parts like South Korea, Japan, etc.

Long-term Plans in the Industry

With the growing sophistication of PC content release scopes, uniqueness and PC platforms will most likely affect games on open BYOG cloud gaming services as of GeForce Now. This is going to make things more challenging, with storefronts coming up with their cloud-based services. 

It is also speculated that GeForce Now could be explored as a distribution channel by other gaming services in very much the same fashion as of Ubisoft’s Uplay+, making its presence on Google Stadia. This is predicted to hold the possibility of opening a B2B revenue stream for Nvidia.    

Nvidia GeForce Now has a promising future as a service. With competitive pricing and technological advantage, it is expected to maintain its stature in the industry. 

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