Watch Out Apple, Google: Samsung Is Reportedly Launching A Hugely Disruptive Cloud Gaming Service

Samsung Electronics Co SSNLF looks reportedly set to challenge Apple Inc. AAPL and Alphabet Inc.-owned GOOGL Google head-on in the mobile gaming arena as it reportedly ventures into cloud gaming for smartphones. 

What Happened: The Korean electronics giant is expected to officially announce this venture on Oct. 5, according to a report by Korea Economic Daily, as it views cloud gaming as a promising untapped space with a favorable future, even as the smartphone market experiences a slowdown.

Unlike competitors like NVIDIA Corporation NVDA and Microsoft Corporation MSFT, Samsung’s cloud gaming platform will primarily target smartphones.

The platform is expected to eliminate the need for game downloads or installations, potentially disrupting giants like Google and Apple, as there would be no need to pay a fee of up to 30% to the U.S. tech giants, according to the report.

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Samsung is reportedly in discussions with various game developers to bring their games to its platform. While the pricing structure remains unclear, it’s suggested that Galaxy users may receive free access to games on Samsung’s platform.

With smartphone sales on the decline, Samsung aims to engage its vast user base, estimated at around 1 billion Galaxy users, to drive revenue.

Why It Matters: This development coincides with Apple’s recent introduction of the iPhone 15 Pro, promoted as the “Next Generation of Mobile Gaming” capable of running modern games. 

Apple believes the iPhone 15 Pro, powered by the A17 Pro chipset, will outperform Sony’s PlayStation and Microsoft’s Xbox gaming consoles.

Benzinga’s Quick Take: As the boundaries between mobile devices and gaming consoles blur, Samsung’s entry into cloud gaming for smartphones could be a game-changer. By focusing on the smartphone gaming market, Samsung positions itself to compete directly with Apple and other tech giants in this expanding industry.

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