Amdocs Research Reveals the Console Wars Are Over; Cloud Gaming and Metaverse on Track for Mainstream Adoption

JERSEY CITY, NJ - Amdocs (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today released research findings that give a deeper and surprising look into expectations around the metaverse and cloud gaming.

The New Gamer Report, conducted by Dynata and commissioned by Amdocs, surveyed US gamers who play at least once per week. It found that gamers are largely ready for a “post-console” future that pairs cloud gaming with 5G connectivity – and they are willing to pay more for it. When it comes to the metaverse, while the majority of consumers are interested, concerns around poor connectivity, hardware costs and it being too early in its infancy could hinder adoption.

Cloud gaming findings include:

• Cloud gaming adoption is taking off – 62% of gamers have used or plan to use popular cloud gaming services this year, with Xbox Game Pass ranking as the most popular. 65% of gamers think ongoing cloud gaming developments are positive, while 38% predict it will completely change the industry.
• The vast majority (78%) of gamers are willing to pay at least $10 for cloud gaming if they could ensure a bundled, dedicated 5G connection as an add-on to their gaming subscription. Almost half of these respondents (44%) would pay more than $20 for this service.
• The gaming community is more diverse than expected. 50% of gamers surveyed were female, more than 70% of gamers were over the age of 35, and 30% were over the age of 65, further showing gaming is resonating with different genders and age groups.
• The console wars may be coming to an end, as 82% of gamers said they would consider bypassing purchasing gaming hardware in favor of the cloud, if they could stream any new AAA video game without issue. Only 18% reported they would still want a dedicated console.
• When considering what aspect of cloud gaming was most important, the research found gamers felt quality of content (39%) is more significant than quantity (7%) further cementing the fact that exclusive IP access will be critical.

Metaverse findings include:

• Despite feeling positive about the metaverse as a concept, gamers still have hesitations. 21% of gamers are not confident their internet connection can handle the metaverse, and 33% feel hardware (ex: VR headsets) is too expensive. 41% think it’s too early to jump in and want more time for it to develop.
• Most gamers feel positively about the promise of the metaverse, with only 18% believing it won’t become popular. Age 35-44 were the most likely to be interested in the metaverse (58%) compared to 49% of 18-24, 40% of 45-54 year olds, and 17% of 65+.
• 36% felt the metaverse will transform gaming, with 21% believing it will change the way we work. 13% believe it will be successful with gaming, but not elsewhere.
• While the largest concern about the metaverse is gamers think it’s in too early stages to jump in, concerns about security and identity theft risks (37%) ranked as the second highest barrier to adoption.

Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs, said: “These findings uncover several essential factors, first and foremost the need for networks to be future-ready for in-demand, intensive and seamless experiences – such as evolutions of the metaverse and the supercharging of low-latency cloud gaming. As these experiences become more ingrained in our culture and we begin to explore the potential of a Web 3.0 world, entertainment partnerships and new, flexible monetization approaches that enable a la carte experiences - coupled with connectivity - will become increasingly critical.”

Amdocs will be showcasing its network, monetization and entertainment offerings, as well as metaverse experiences, at Big 5G Event, May 16-18, 2022.

The New Gamer Report is based on a March 2022 survey from Dynata, which targeted 1,000 US gamers who reported gaming at least one time per week.

Supporting Resources

• Read Amdocs’ research findings