Google enters battle for cloud gaming market

In this file photo taken on August 21, 2019 a visitor plays a cloud-game at the stand of Google Stadia during the Video games trade fair Gamescom in Cologne, Germany. (AFP / Ina Fassbender)
Updated 17 November 2019

Google enters battle for cloud gaming market

SAN FRANCISCO, California: Ever-expanding Google becomes a gaming company Tuesday with the launch of its Stadia cloud service that lets people play console-quality video games on a web browser or smartphone.
The Internet giant hopes to break into the global video game industry expected to top $150 billion this year, with cloud technology that could broaden audiences attracted by rich new features as well as ease of access with no more need for consoles.
But analysts say Stadia’s outlook is uncertain as its faces rivals such as PlayStation Now in an emerging and highly-competitive market.
Stadia plays into a trend in which content — ranging from blockbuster films to work projects — lives in the cloud and is accessible from any device.
“All of these new services are merely pointing out that we don’t need sophisticated hardware in the home to access entertainment,” said Wedbush Securities equity research managing director Michael Pachter.
Google last month sold out of “Founder’s Edition” kits, which are priced at $129.
Each kit contains a Stadia controller and a pendant-shaped Chromecast Ultra wireless connection device that plugs into television sets.
Stadia games are playable using Google Chrome web browser software on computers.
It also works with Google-made Pixel smartphones from the second-generation onward, and on televisions.
Stadia Pro subscriptions, priced at $10 a month in the US, will be available in 14 countries in North America and Europe.

'Underwhelming'
However, analysts say Stadia could wind up as another “bet” that Google walks away from if it fails to live up to expectations.
“Stadia will live or die by its content,” said Ovum senior analyst George Jijiashvili.
“The announced 12 launch titles are underwhelming.”
Subscribers will be able to buy games that will be hosted at Google data-centers, but some free games will be available to subscribers, starting with “Destiny 2: The Collection.”
Stadia on smartphones will work with WiFi connections rather than rely on mobile telecom services.
Being able to play without lags or interruptions is paramount to gamers, and flawed Internet connections could cause frustration. Internet speed will also determine how rich in-game graphics can be.
Some promised features such as integration with YouTube will not be in place at launch.
“Stadia appears to be rushed out the door before fully ready and, worryingly, Google is risking falling short on its promises,” Jijiashvili said.
“These shortcomings however would be easily overlooked if Google can deliver a very reliable and high-quality game streaming service.”
Google appears committed to doing just that, according to Ubisoft senior vice president of partnerships Chris Early.
The French video game giant has been working with Google and its games are among titles coming to the service.
“From what I have seen, their plans are too deep; they are too good, and they are too invested,” Early said. “They are not calling it quits any time soon.”
He expects a long launch period during which Google will beef up Stadia.
“If there is a one-day problem at launch, it isn’t the end of the world; it isn’t even close,” he said, stressing the potential for Stadia to let people play without investing in consoles.
But Pachter questioned whether subscriptions were the right approach.
“The right model is pay as you go or pay for the game and play unlimited without a subscription,” Pachter said.
“Amazon will try one of those and will win the streaming wars.”
Amazon has game studios but no online game service.

Project xCloud
US technology veteran Microsoft has been testing a Project xCloud online game platform.
“Next year, we’ll bring Project xCloud to Windows PCs, and are collaborating with a broad set of partners to make game streaming available on other devices as well,” Microsoft corporate vice president Kareem Choudhry said in an online post.
Sony Interactive Entertainment last month slashed the price of its PlayStation Now cloud video game service by about half in the US to $10 monthly.
Japan-based Sony also boosted the library of games that PlayStation Now users can access through its consoles or on personal computers powered by Windows software.
Sony and Microsoft are also poised to release new-generation video game consoles next year.
“While we expect dedicated consoles to eventually lose relevance in the face of cloud gaming services, there’s no guarantee that it will be Google’s service — rather than Sony and Microsoft’s — that catalyzes this trend,” said Ovum senior analyst Matthew Bailey.


STC postpones its acquisition of Vodafone Egypt for second time

Updated 13 July 2020

STC postpones its acquisition of Vodafone Egypt for second time

  • Kingdom’s largest telecom company says it will need an additional two months to complete the deal

CAIRO: The Saudi Telecom Company (STC), the Kingdom’s largest telecom company, said that it will need an additional two months to complete a deal to purchase a 55 percent stake in Vodafone Egypt.

In January, STC was in agreement to buy the stake for $2.4 billion. In April, it extended the process for 90 days due to logistical challenges stemming from the spread of COVD-19. The company said in a statement that it would extend the period again to September for the same reason.

The Public Investment Fund, the Saudi sovereign wealth fund, owns a majority stake in STC. The ownership of Vodafone Egypt is divided between 55 percent for Vodafone International, which is the target percentage of the Saudi purchase offer, 44.8 percent for Telecom Egypt, and the remaining 0.2 percent for small shareholders.

Telecom Egypt is awaiting the results of Vodafone’s evaluation of the final share price to announce its position on the deal. A Telecom Egypt official stated that the company is still awaiting STC’s position regarding the purchase of the share. If the deal is not completed, it may be presented with its rights to acquire Vodafone’s share, which would allow it to take over 99.8 percent of the company’s shares, leaving 0.2 percent for small investors.

Ashraf El-Wardany, an Egyptian communications expert, pointed out the importance of waiting until the procedures between STC and the Vodafone Group are complete. The results will determine the next steps by Telecom Egypt.

El-Wardany said that the Saudi operator must, after completing the relevant studies, submit a final binding offer at the share price and any conditions for purchase. If approved by Vodafone, it must submit the offer with the same conditions and price to Telecom Egypt, provided that the latter responds within a maximum period of 45 days to determine its position regarding the use of the right of pre-emption and the purchase, or lack thereof, of Vodafone’s share.

According to El-Wardany, there are other possible scenarios. Vodafone International may not be convinced of the offer or the conditions presented by the Saudi side and the sale may be withdrawn, or the Vodafone group may be ready to sell and has prepared another buyer for its stake in Egypt in the event of rejecting the Saudi offer. It may also it back away from the deal and continue to operate in Egypt for a few more years.

El-Wardany said that if Telecom Egypt decides not to use the right of pre-emption to acquire the remaining Vodafone shares for any reason, it will continue with its 44.8 percent stake.
It may also resort to selling all of its shares or part of it to the Saudi side or to any company that wants to acquire its stake.

“This raises the question of whether STC can acquire all of Vodafone’s shares,” El-Wardany said, adding that the coming months “will make the answer clear.”