Cloud Gaming: The Future of Video Gaming and Its Impact on Retail
May 01, 2025
Sony Entertainment of the Future (EOTF) retail section located in Walmart Stores. 2025
Introduction
The gaming world is changing fast, and cloud gaming is leading the charge. As more players move to streaming games instead of buying physical copies, retailers will need to adapt. Traditional software sales are expected to decline, which means stores will have to rethink their layouts, product offerings, and how they engage with customers. But while the demand for physical games may shrink, there are still plenty of opportunities for brands and retailers willing to embrace the shift.
What is Cloud Gaming?
Cloud gaming, or game streaming, allows players to enjoy high-quality games without needing expensive hardware like gaming consoles or high-end PCs. Instead, the games run on powerful remote servers, with platforms like Xbox Cloud Gaming and NVIDIA GeForce Now handling all the heavy lifting. When a player presses a button, the input is sent to the cloud server, which processes it and streams the gameplay back in real time. This means gamers can play top-tier titles on anything from smartphones and tablets to smart TVs and basic laptops—no downloads or disc drives required. Just like Netflix changed the way we watch movies, cloud gaming is set to transform how we play.
Where the Industry is Headed
Over time, cloud gaming is expected to become the norm, reducing the need for physical discs and digital download codes. Retailers that dedicate entire sections to gaming software may shift that space toward gaming accessories, gift cards, and cloud-compatible devices. Big-box stores like Walmart, which devote significant shelf space to video game sales, will likely adjust their strategies as more gamers go digital.
That said, the transition won’t happen overnight. While Xbox is fully embracing the cloud, other brands may take a more gradual approach, keeping physical and digital formats available for now. This means there’s still time for retailers to strike a balance between traditional game sales and emerging cloud-based products, such as gaming accessories, digital gift cards, and cloud-ready hardware.
Some companies will likely stick with physical media for the long haul, catering to gamers who love collector’s editions and special releases. PlayStation, for example, seems committed to keeping discs around, which could give it an edge with players who still prefer physical copies.
How the Market is Adapting
Cloud gaming is picking up steam, with major companies forming partnerships to make it more accessible. Microsoft, for instance, is teaming up with LG to integrate cloud gaming directly into smart TVs. This removes the need for a console and makes gaming as easy as launching a streaming app.
As cloud gaming takes off, other products will gain importance, too. High-performance TVs optimized for cloud gaming, high-quality peripherals like gaming controllers and innovative gear like haptic vests are all becoming more relevant. VR and AR gaming are also likely to grow as technology advances.
What This Means for Retailers
Cloud gaming is already reshaping how games are bought and sold. Here’s what to expect:
Less Demand for Physical Games – As more people stream games, stores will carry fewer physical copies, much like what happened with music and movies. Instead, retailers will likely push digital gift cards for services like Xbox Game Pass and PlayStation Plus.
A Shift in Hardware Sales – While traditional gaming consoles may not be as critical, accessories like controllers, headsets, and cloud-ready devices (streaming sticks, smart TVs, etc.) will remain in high demand. Expect retailers to expand their offerings in Wi-Fi routers and internet extenders to support cloud gaming.
More Subscription-Based Sales – Gaming subscriptions will become even more important as services like Xbox Game Pass and PlayStation Plus grow. Retailers may bundle these with other tech purchases to encourage adoption.
A Bigger Focus on Gaming Accessories – Stores will likely put more emphasis on high-end gaming peripherals, from LED-lit setups and gaming chairs to haptic feedback devices that enhance the experience. As VR and AR gaming gain traction, expect to see more related products on shelves.
Cloud Gaming Kiosks in Stores – Some retailers may introduce cloud gaming demo stations where customers can try games instantly without downloads or updates. These kiosks could showcase platforms like Xbox Cloud Gaming or GeForce Now, helping customers experience the technology firsthand.
The Bottom Line
The gaming industry is moving toward a cloud-based future, and retailers will need to keep up. While physical game sales may decline, cloud-compatible hardware, accessories, and gaming lifestyle products have plenty of potential. Companies that embrace these changes will be well-positioned to thrive as the gaming landscape continues to evolve.
How do you see cloud gaming changing the retail landscape? Share your thoughts in the comments!
Jaydon Wilson
Senior Account Executive
Kendal King