tencent cloud

The games industry in Asia & Oceania is undergoing a significant transformation driven by the adoption of cloud technologies, with the market for cloud services and related solutions reaching $6.6 billion in 2024, accounting for over 5% of the region's total games industry revenue. This growth is fueled by the increasing demand for multiplayer, cross-platform, and live service games, which rely heavily on cloud infrastructure for development, operations, and player engagement. Cloud platforms are no longer just providers of server infrastructure; they now offer a comprehensive suite of tools for game development, analytics, live operations, and security, making them central to the games technology ecosystem.

Globally, Amazon Web Services (AWS) is the dominant player in the cloud services market for games, thanks to its extensive global infrastructure, developer-friendly tools, and strong integration capabilities. However, in Asia & Oceania, the landscape is more complex. Chinese hyperscalers like Tencent Cloud and Alibaba Cloud play a significant role, particularly in Mainland China, where Western providers like AWS, Microsoft Azure, and Google Cloud have limited access. Outside of China, these Western providers compete intensely with regional players, creating a diverse and competitive market. Additionally, non-hyperscaler providers such as i3D.net and servers.com are gaining traction as companies explore hybrid cloud strategies to reduce reliance on public cloud services.

Tencent Cloud stands out as a formidable competitor in the region, leveraging its deep expertise in the games market to offer specialized tools and services tailored to game developers. Its strong presence in China and across Asia & Oceania makes it a compelling choice for developers, particularly those focused on live service games. Meanwhile, Google Cloud and Microsoft Azure also maintain a strong foothold in the region, offering robust infrastructure and developer tools that cater to the unique needs of the games industry.

The shift to cloud-based environments is driven by the need for flexible workflows, remote collaboration, and the growing complexity of live service games, which require continuous updates, player engagement, and data analytics. Cloud platforms are increasingly providing tools for player matchmaking, data analytics, security, and live operations, making them indispensable for modern game development. As a result, games companies in Asia & Oceania must carefully evaluate their choice of cloud provider, considering factors such as cost, integration capabilities, and the specific needs of their games.

For cloud vendors, the games industry represents a key growth vertical, with spending on cloud and operations services growing faster than the overall games market. Vendors must focus on helping developers manage cost and complexity, particularly as the demand for live service games continues to rise. This requires offering tailored solutions that address the operational challenges of game development without adding unnecessary overhead.

Other games tech vendors, such as game engine providers (Unity, Epic Games) and backend-as-a-service companies (AccelByte, Backnd), must ensure their products integrate seamlessly with major cloud platforms. As cloud providers expand their offerings, tech vendors need to differentiate their solutions and develop partnerships with both global and regional cloud providers to remain competitive.

In summary, the games industry in Asia & Oceania is increasingly reliant on cloud platforms, which are evolving into central hubs for game development and operations. The competitive landscape, featuring both global and regional players, offers games companies a wide range of options, but also requires careful consideration of cost, integration, and operational needs. As the industry continues to grow, cloud vendors and tech providers must innovate and collaborate to meet the demands of this dynamic and rapidly evolving market.