Archived Post

JPR: Apple TV set-top box will ‘refine and expand’ as TV, cloud gaming market grows

Jon Peddie Research (JPR), a market research firm for the computer graphics industry has issued its latest report for TV and cloud gaming. JPR estimates the TV and cloud gaming hardware market will reach $25 billion by 2025, representing an 11.3% compound annual growth rate [CAGR] from 2019. This represents an unprecedented increase of almost $12 billion.

“In the TV gaming market we are observing a confluence of multiple factors coming together in the coming years which will produce ‘a perfect storm’ of market opportunity for many industry players,” says Ted Pollak, senior analyst, Gaming Industry, JPR. “The big three of Microsoft, Sony and Nintendo are set to release new local processing hardware in this window. Cloud services such as Google Stadia, Nvidia GeForce Now, Sony PlayStation Now and other currently released cloud platforms should expand in quality and customer base. We expect new cloud gaming services from Microsoft xCloud, TenCent Start, and possibly something from Amazon to come into play. Additionally, we are forecasting AppleTV and other micro-console platforms to refine and expand.”

JPR President Jon Peddie notes that the resolution of TVs has quadrupled from the previous generation with 4K displays replacing 1080p as the standard. Gamers demand high frame rates. The processing load to draw these frames requires powerful hardware whether it’s local or in a data center. Internet speeds are getting faster and latency is dropping as the network edge moves closer to the user. 

“We expect integrated cloud gaming services to come as a feature of future TVs,” Peddie adds. “As with all of our gaming hardware analysis, we take into account the purchasing intent of the customer and reduce the market size for multi-use products to that which is impacted by the demand for video gaming capabilities.”

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.