The end of gaming as we know it.. - WAN Show Mar 22, 2019

Episode Summary

Executive Summary: The episode centered on Google Stadia’s launch, debating its latency, hardware model, accessibility, and ownership concerns. The hosts saw cloud gaming as technically promising and potentially transformative for mobile, emerging markets, and casual players, while also worrying about subscription/rental economics, internet quality, and reduced game ownership. The show then contrasted Epic Game Store’s momentum with Steam’s need to modernize its UX.

Main Topics: Google Stadia as a cloud-gaming disruption (Priority: 5/5): The hosts break down Stadia’s launch, arguing it could reshape gaming by removing hardware barriers and making high-end games playable on phones, laptops, and Chromecast devices. They emphasize that it only needs to be “good enough” for many users to start a broader transition. Latency, performance, and technical feasibility (Priority: 5/5): A major discussion point is whether Stadia’s input lag is acceptable versus traditional gaming. They reference Digital Foundry’s testing, noting that the measured latency looks close to console gaming in some cases, though still worse than high-refresh-rate PC gaming. Ownership vs subscription in gaming (Priority: 4/5): The hosts express unease with purely digital and subscription-based models, comparing Stadia and EA-style access subscriptions to real ownership. They frame this as part of a broader generational shift toward renting rather than owning entertainment and devices. Accessibility, emerging markets, and new users (Priority: 4/5): Stadia is praised for lowering barriers to entry in places where gaming PCs or consoles are expensive or impractical. They discuss its potential in emerging markets, internet cafés, and for users who mainly watch games rather than play them. Stadia features: YouTube integration and social play (Priority: 4/5): The episode highlights Stadia-specific features like instant play from YouTube, crowd play/join queues, state sharing, and assistant-based help. These are framed as genuinely novel hooks that could make gaming more social and frictionless. Epic Game Store vs Steam competition (Priority: 4/5): The second half covers Epic’s growth, Metro Exodus sales, and whether store exclusivity matters versus game quality. The hosts argue content matters most, but store usability, revenue split, and platform loyalty still influence buying decisions. Steam redesign and modern UX pressure (Priority: 3/5): The hosts discuss Steam redesigning its library interface in response to Epic. They are skeptical of major visual redesigns if they reduce efficiency, but acknowledge Steam may need a more approachable UI for younger, Fortnite-shaped users.

Key Arguments: Stadia’s success does not require matching elite PC performance; it only needs to meet the needs of a much larger casual audience. Digital Foundry’s testing suggests Stadia latency can be close to console gaming, especially when display lag and setup differences are considered. Cloud gaming lowers hardware costs and could make gaming accessible on phones, Chromebooks, and low-end devices. Subscription models are attractive to younger generations and people who struggle to buy expensive hardware upfront, but they reduce ownership. YouTube integration, instant play, and state sharing could make gaming far more discoverable and social than existing platforms. Epic’s lower revenue cut and engine integration are strong incentives for developers to release there. Store loyalty exists, but most players still choose based on the game rather than the launcher; usability and trust remain important. Steam may need to modernize its library interface to stay attractive to newer, younger gamers coming from Fortnite and Epic.

Data Points: Google Stadia latency: 166 ms - Reported as Stadia latency including display lag in the discussed Digital Foundry testing. Google Stadia latency on 15 Mbps: 188 ms - Worst-case/low-bandwidth-style result cited in the conversation. Stadia resolution/refresh target: 4K60 - Stadia was described as capable of streaming at 4K and 60 FPS under good conditions. Minimum bandwidth cited: 15–25 Mbps - Discussed as the approximate internet speed range needed for lower-quality Stadia play. Epic Game Store revenue cut: 12% - The hosts note Epic keeps 12% of revenue from developers. Steam revenue cut: 30% - Standard Steam cut referenced in the comparison with Epic. Steam cut after $10M sales: 25% - Reduced Valve fee mentioned for larger titles. Steam cut after $50M sales: 20% - Further reduced Valve fee for top-selling games. Epic ownership by Tencent: 40% - Raised as a concern regarding potential Chinese government influence and data concerns. Metro Exodus sales multiplier: 2.5x - Epic claimed Metro Exodus sold two and a half times more copies than a comparable Steam title in the same period. Fortnite gamer age range: 53% ages 10–25 - Used to argue Epic’s audience is younger and more likely to adopt a new store interface. Shaw internet basic tier discussed: 75 Mbps - Used as an example that many consumers may already have enough bandwidth for Stadia. Madrinas promo discount: 50% off - Sponsor segment mentioning an offer code for a limited time.

Pivotal Quotes: "It doesn't have to be better than the top of the top. And eventually... there's just no reason, no practical reason to game the way that we game today." — Speaker 1: Argument that Stadia only needs to be good enough at first to drive adoption and improve over time. "The game is the thing for sure." — Speaker 2: Used during the Epic vs Steam discussion to emphasize that content quality outweighs launcher preference for most buyers. "I think Steam may need a platform that isn't icky when you first log in." — Speaker 1: Comment on why Steam might redesign its library to be more approachable for younger users.

Implications: Cloud gaming could widen who can play, where, and on what devices, but it will also push ownership, pricing, and internet access to the center of the debate. Meanwhile, launcher competition may force Steam to modernize and make platform experience matter more.