4 min readNew DelhiUpdated: Jul 27, 2026 02:51 PM IST
With AI-led demand sending memory chip prices soaring and making gaming consoles more expensive, cloud gaming service providers are betting that people will choose streaming games online over upgrading to new hardware.
While some people will still buy their own consoles, many of them could turn to streaming games online because the technology has developed a lot in recent years, according to Jeffrey Gattis, who leads Amazon’s gaming business.
“There are somewhere between two-and-a-half and three billion people who play games around the world, but only a fraction of those own dedicated gaming hardware. As hardware becomes more expensive, and as streaming technology continues to improve, I think you’ll naturally see more people asking whether they actually need that dedicated device,” Gattis was quoted as saying in a recent interview with BBC.
The Amazon gaming chief said that he believes there was still a huge untapped audience beyond traditional console owners which the tech giant was trying to reach. Gattis’ comments come in the backdrop of Amazon’s latest announcement about integrating Luna, its own cloud gaming service, into the Prime Video app. This integration essentially ensures that gaming titles available on Luna would sit alongside shows and films on Prime Video.
Users will also be able to view the titles under a separate ‘Games’ tab on Prime Video on Fire TVs in the US and UK.
While the announcement reflects a broader push by the likes of Netflix and Amazon Prime Video to turn OTT (over-the-top) video streaming platforms into gaming destinations, Gattis’ remarks about players choosing streaming over traditional consoles the future come at a time when the prices of gaming hardware continue to climb as the cost of components also rise.
Recently, Sony and Microsoft hiked the cost of their respective consoles, and Valve priced its new Steam Machine (512GB model) at $1,049 or approximately Rs 1,00,581.
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In May this year, Super Mario-maker Nintendo said that higher component costs, particularly memory, and the impact of tariffs is expected to add roughly 100 billion yen ($638 million) to costs in the current financial year. As a result, the company announced that the price of a Japanese language Switch 2 Japan model will go up by 10,000 yen to 59,980 yen, with the gaming device in the US to cost $50 more at $499.99 or approximately Rs 47,845.
Cloud gaming as an alternative
Cloud gaming allows players to play games on a phone, tablet, or controller by streaming them online from a remote server. It does not require players to download the game and run it on a PC or console. However, cloud gaming also requires a reliable internet connection.
Since the start of 2026, several cloud gaming service providers have rolled out their offerings in India. In February this year, Microsoft announced that it is expanding its Xbox cloud gaming service to India, allowing any player with a compatible Bluetooth-enabled wireless controller, a high-speed internet connection, and an Xbox Game Pass subscription to play titles such as Call of Duty: Black Ops 7, Hollow Knight: Silksong, and Detective Dotson, via the cloud gaming service.
Monthly plans for Xbox Game Pass start at Rs 499.
More recently, Nvidia’s cloud gaming service GeForce Now made its debut after months of wait and shifting timelines, with plans starting at Rs 999 per month. The US-based chipmaker claims that GeForce Now leverages Nvidia proprietary technology such as real-time ray tracing, DLSS, Multi-Frame Generation, and more to deliver low‑latency, high‑fidelity gameplay on everyday devices.
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While cloud gaming could emerge as the future of video games, there are several roadblocks to its mainstream adoption, such as latency issues, inconsistent experiences, and the absence of a robust business model. Experts have also pointed out that many high-end games like the upcoming Grand Theft Auto 6 still require a controller.
Hence, many people may still continue to favour installing games on their own machines rather than streaming it online. Whether the rising cost of consoles could change that remains to be seen.
