Facebook Rolls Out Free Clouding Gaming

Facebook Gaming
Facebook Gaming

Over the past two years, we’ve seen Amazon, Google, Microsoft, and Nvidia all enter the cloud gaming space. On Monday, facebook announced that they will be offering the ability to stream and play Android games through the Facebook or Android App.

Unfortunately for iPhone users, because Apple’s app store policies prevent competitors from offering cloud services, Facebook’s cloud gaming service will be limited to Android devices for now.

A very different business model

This giant social media network is quite familiar with the gaming scene, having enticed users with games such as “Farmville” since 2007. 

Jason Rubin, Facebook’s vice president of play, told The Washington Post that as a result of Microsoft and Google already having paved the way for cloud gaming expectations, he hopes that people will realize that Facebook’s model will be entirely different. 

“Consumers are going to stumble upon this, that’s Facebook’s way of doing things,” said Rubin. As users scroll through their regular feed, he hopes that people will discover this new feature.

As of right now, Facebook isn’t offering the opportunity to purchase games, however, it’s not impossible for them to start offering that opportunity later down the road.

Not trying to replace consoles

Instead of partnering with AAA game developers right off the bat, Facebook is focusing it’s attention on it’s existing library of free-to-play games. Facebook Gaming’s “Instant Games” is moving from flash and HTML5 games and adding support for Android games to be streamed from Facebook’s cloud servers.

“We’re not trying to replace any other platform, we’re trying to improve the ecosystem as a whole,” Rubin stated. He said they are hoping that if this new cloud gaming service takes off, developers will become interested in adding a social experience to their existing games.

Rubin also said that any games that have the ability to cross platforms, should eventually work on Facebook’s service, so you can keep playing your favorite games, even with a rough connection like when you’re sitting in the backseat of an Uber.

“Cloud game streaming for the masses still has a way to go, and it’s important to embrace both the advantages and the reality of the technology rather than try to sell you on a promise of where it’ll be in the future.” Rubin stated.

Our Take

Right now, more than 380 million people play games on Facebook every month and they are focusing a lot of their energy on satisfying and growing that audience.  Facebook gaming is a new tailwind for facebook stock and you can bet they will eventually roll out a way to purchase games.

We’re bullish on the future of cloud gaming and e-gaming in general. More and more people are beginning to leave traditional sports and pursue careers in the eSports industry Top gaming platforms are on a hiring spree for influencers and esports is generally booming. Facebook’s announcement fits in with that megatrend and therefore adds to the bull case for $FB.

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