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VPS → Cloud Gaming
What is cloud gaming?
Cloud gaming is a technology that enables users to play video games without needing powerful hardware or downloading the game itself. So, instead of turning to a specific device like a PC, PlayStation, or Xbox to run games, users can play them directly on their TVs or mobile devices — similar to how they stream their favorite shows.
Robust remote servers in data centers power games and stream them over the Internet straight to the user. Imagine playing any game you want without expensive hardware, cables, software, storage space, or even just a console. That’s cloud gaming in a nutshell.
If you’re curious about what cloud gaming is, how it works, and what you need to run games via a streaming service, look no further. This guide will unpack it all for you, piece by piece.
How does cloud gaming work?
Quite literally a game-changer (pun intended), the cloud gaming market is booming. It’s projected to grow at a compounded annual growth rate (CAGR) of 46.9% and reach $143.4 billion in revenue by 2032.
Recent updates also suggest the market is currently valued at $9.71 billion in 2024 and continues to see robust growth, driven by advancements in 5G, cloud computing, and increasing demand for high-quality gaming experiences. These factors make cloud gaming an exciting and rapidly evolving space for gamers and developers alike.
So, what does cloud streaming bring to the gaming industry that makes it so compelling?
For starters, cloud gaming eliminates many of traditional gaming’s pain points. Because games live and run on remote servers with powerful hardware, a compatible device and a reliable internet connection are all you need to play your favorite games. This means that issues that plague the gaming industry, such as hardware compatibility problems or frame rate drops, become a distant memory. And, for many gamers out there, these are no small things.
But that’s not all. Cloud gaming platforms aren’t so different from streaming services like Netflix or Hulu. They stream video output — just like video-on-demand services. The key difference is that cloud-based games also read your inputs but respond accordingly.
This means gamers no longer need to download large files (no more storage limitations), install games (no more software hiccups), or buy each game individually. Just pay a subscription fee, turn on your TV and gaming device, and you’re ready to play.
In a nutshell, it’s cheaper, easier, and more convenient. What’s not to like?
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What’s the difference between game subscriptions and game streaming?
Whether you’re an avid or casual gamer, chances are you’ve already heard about game subscription services like Xbox Game Pass or PlayStation Plus. Every gaming platform has its own monthly or yearly subscription plans, granting players access to an ever-growing library of digital games without having to pay for them individually.
So, what is cloud streaming? And how does it differ from game subscriptions?
Game subscriptions are recurring payment models in which gamers pay a monthly or yearly fee to access a constantly updated library of digital games they can download and play whenever they want.
A game streaming service, on the other hand, does not require the player to own or install the game, as it’s hosted remotely by a server owned by the service provider.
For example, within PlayStation Plus, the Essential and Extra membership plans offer game subscription features, while the Premium plan also includes the option for cloud streaming.
Required equipment for cloud gaming
In theory, all you need to play a game hosted by a streaming service is a compatible device (a computer, smart TV, smartphone, or tablet), a controller, and a fast internet connection.
However, depending on the individual cloud gaming platform, you might need additional components to fully enjoy the experience. For example, with the PlayStation Plus Premium service, you can generally only play PS5 games if you physically own a PS5, although you can play PS4, PS3, and PS2 games on your PC.
In general, for a smooth gameplay experience, we recommend a device with at least 4 GB of RAM and an internet connection with a minimum speed of 25 to 50 Mbps.
Common cloud gaming services
Now that you know what a cloud gaming platform is and how it functions, it’s time to explore the most popular ones.
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In this section, we’ll look at the following popular game streaming services:
- Xbox Cloud Gaming
- PlayStation Plus Premium
- Nvidia GeForce Now
- Amazon Luna
1. Xbox Cloud Gaming
Xbox Cloud Gaming is part of the Xbox Game Pass Ultimate subscription plan. It’s priced at $16.99, and you can play on both a PC and a console. The sole exception is Fortnite, which only requires a free Microsoft account to play. However, the Game Pass might still be worth the price since it includes a library with hundreds of games, including exclusive AAA titles such as Halo Infinite and Forza Motorsport 7.
Although there are no limitations to streaming sessions and quality, most games cannot be played with a PC mouse or keyboard. In most cases, you’ll need an Xbox-compatible controller.
Gamers particularly appreciate Xbox Cloud Gaming for its day-one releases, which are games that become available on the same day they are released.
2. PlayStation Plus Premium
As with Xbox Game Pass, Sony’s cloud game service is part of its top-tier subscription — PlayStation Plus Premium. This means you retain all benefits from other levels of PlayStation Plus, such as access to classic PS2 and PS3 games, a vast library of hundreds of games, and on-demand movies via the Sony Pictures Core app.
The price for PlayStation Plus Premium is slightly higher, at $17.99 per month, although you could cut down the cost by purchasing the annual subscription for $159.99 (which effectively means you’re paying $13.33 per month).
As we mentioned earlier, you can only steam PS5 games if you own a PS5. However, you can play games from older consoles on your PC or mobile device. Additionally, you can stream PS5 games to another device from your console using PlayStation Remote Play. Why is this handy? For instance, what if someone else is occupying the main 65-inch TV, and you’ve been relegated to another room?
3. Nvidia GeForce NOW
Nvidia GeForce NOW (GFN) operates on a very different model. You don’t pay to access games; instead, you can play games you already own from digital PC stores such as Steam or Epic Games. Unlike other services, this means that you will still retain access to your games even if you stop paying for the subscription. The idea is that you’re paying to play games at maximum resolution and ultra-high graphics settings without compromising performance or frames per second (FPS).
There are three tiers available: Free, Priority ($9.99 per month), and Ultimate ($19.99 per month). Higher tiers provide access to higher resolutions, real-time ray tracing, faster access to GFN servers, and extended game session lengths.
4. Amazon Luna
Amazon Luna is a cloud gaming platform associated with Amazon Prime. Prime subscribers automatically gain access to the Prime Gaming channel, which offers a rotating selection of free games.
Additionally, there are three other channels available, each requiring a monthly fee: Jackbox Games ($4.99 per month), Luna+ ($9.99 per month), and Ubisoft+ ($17.99 per month). Jackbox Games features family-oriented games, Luna+ offers an expanded library, including older AAA titles like Middle-earth: Shadow of War, and the Ubisoft channel includes recent releases from Ubisoft like Rainbow Six Siege.
Performance is average, and you should not expect the 4K quality of the other services. However, Amazon Luna can be a viable alternative for occasional local co-op gameplay sessions (called Couch Play).
Ready to level up your gaming experience?
While major players such as Microsoft and Nvidia largely dominate the current market, new providers may further reshape and redefine what cloud gaming is with new offerings and innovative service models.
Liquid Web’s VPS hosting offers top-tier hardware, 24/7 expert support, and high uptime to keep your game server running seamlessly. And if you’re looking for robust power and control, our gaming hosting is a great fit.
Whether you’re hosting a small group of friends or managing a large gaming community on Discord, Liquid Web has the solution to keep your gameplay smooth and reliable.
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Alex Napier is an Affiliate Program Manager at Liquid Web and a gaming marketing specialist. He blends data with creativity to build engaging communities. Outside of work, Alex enjoys exploring new games, crafting tabletop worlds, and connecting with the gaming community.
Additional resources
Complete guide to building a home gaming server →
Step-by-step for Steam and non-Steam games
Dedicated vs. listen servers →
What’s the difference and what does it mean for your game?
Gaming industry stats [2024] →
A world at play: Gaming industry statistics and trends