Home consoles face extinction as cloud and AI boom, BI research says

Bloomberg Intelligence forecasts that streamed games will become a $38B market by 2035 and that the dedicated console will stop being a mass-market product. The case depends on surplus GPU capacity pushing compute prices down late this decade, which has not happened yet.

Streamed games will be a $38B market by 2035, and the console may stop being a mass-market product. That is new research from Bloomberg Intelligence.

The report is led by BI analyst Nathan Naidu and was reported by Bloomberg on Tuesday. AI does double duty, cutting costs and supplying the data centres streaming runs on.

Consoles become a niche. Naidu compares them to record players, kept on by enthusiasts and collectors, and calls their role relatively uneconomic.

The economics rest on a glut that has not arrived. Naidu concedes AI demand is pushing compute prices up now, and expects the build-out to leave surplus GPU capacity late...

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