October 14, 2026, 3:32 pm | Read time: 3 minutes
Despite increasing digitalization, many areas of the tech world still rely heavily on the right hardware. This is true for smartphones as well as video game consoles, whose manufacturers and fans have long been engaged in fierce battles, and which can even achieve cult status. But for how much longer? Industry analysts now have a bleak outlook for PlayStation, Xbox, and others.
Cloud Gaming Will Displace PlayStation and Xbox
This is according to a new report from the renowned business magazine “Bloomberg.” A team led by expert Nathan Naidu concludes in a new study that traditional gaming consoles like the PlayStation or Xbox will be almost completely displaced by 2035.
The reason for this is expected to be the significantly growing cloud gaming, where games can simply be streamed online. The technology already exists, but it has only been met with lukewarm reception so far. Google, for example, made an ambitious attempt with Stadia but gave up after just three years. Nevertheless, the trend is expected to move in only one direction: sharply upward.
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AI Drives Development Forward
According to the report, the cloud gaming market is expected to grow to up to $38 billion in nearly ten years. The development is fueled by the expansion of data centers and increasingly capable AI tools. This is expected to make operations cheaper and thus expand the reach for game streaming. Rising advertising revenues could also drive growth.
AI is already playing an increasingly important role in development, making games more complex. Therefore, it would be more efficient to provide the necessary technical infrastructure directly from the data center and thus online.
Consoles More Like Record Players
PlayStation, Xbox, and others are not expected to disappear entirely. Instead, it is conceivable that consoles will occupy a specialized niche, similar to record players in music. They could then appeal more to collectors or particularly ambitious gamers. Bloomberg also includes gaming PCs in this category.
Microsoft, Nvidia, and Tencent are said to have good conditions for a cloud-based future, as they have already invested extensively in the necessary structures. The former is already holding a 40 percent market share with Xbox Cloud Gaming and is expected to maintain it, despite recent restrictions on the offering.
However, 2035 is still a way off. For now, the prices for computing power are skyrocketing due to the expansion of AI data centers. Analysts expect excess capacity, which should lead to lower prices, only at the end of the 2020s. Until then, the majority of gamers will likely remain loyal to PlayStation, Xbox, or Nintendo.