Samsung is preparing to unveil a dedicated cloud gaming platform for Galaxy smartphones and tablets, in a bid to diversify beyond hardware sales. According to industry insiders, the platform will be officially announced on October 5th at the Samsung Developer Conference 2023 in San Francisco. The company is currently running beta tests for the platform in the United States and Canada.
The cloud gaming service aims to provide real-time streaming of various mobile games, eliminating the need for Galaxy users to purchase gaming consoles or download apps from Google and Apple’s app stores. “It’s a win-win for Samsung and gaming companies,” said an IT industry representative. Samsung is negotiating collaboration plans with global game developers to attract a variety of games to the platform.
Despite advancements in semiconductor and camera technology and the introduction of innovative products like foldable phones, the sales of Galaxy smartphones have remained stagnant. Samsung hopes that the cloud gaming platform will become a steady revenue stream and plans to offer the service without a subscription fee for users. However, Galaxy users will still have to pay the gaming companies to use certain premium games and services like Nvidia’s “GeForce Now.”
The strategy is largely driven by the understanding that “you can’t survive just by selling devices,” reflecting a sense of urgency to diversify income streams. According to market research firm Counterpoint, global smartphone shipments are expected to decline by 6% year-over-year.
Samsung is already earning annual revenues in the “hundreds of millions” through its smart TV platform services. The company receives commissions when Samsung Smart TV users subscribe to services like Netflix. Samsung also launched a cloud gaming platform exclusively for its smart TVs last July.
