Cloud Gaming Demystified: An Introduction to the Legal Implications of Cloud-Based Video Games

In this paper, we set out to ‘demystify’ cloud-based videogaming and its legal implications. We do this in two stages. First, we offer a descriptive analysis of the videogame sector, including relevant markets and supply chains. We explain the basics of cloud computing technology, traditional videogame technology, and how the two converge in cloud-based videogame ecosystems. We also analyze market structures for both the cloud and video game industries, as well as relevant supply chains, in order to understand how these markets will overlap. Based on these analyses, we make predictions about how the cloud gaming market will be structured, including a breakdown of three separate models for cloud gaming services: the ‘layered’ model of Gaming-as-a-Service (‘GaaS’), the ‘integrated’ model of GaaS, and the ‘consumer infrastructure-as-a-service’ model. Finally, we use these three models to analyze how certain intellectual property rights, contractual rights, and regulatory issues will develop in this novel environment for videogame distribution and access.