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NVIDIA’s GeForce NOW and the new Strategy

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NVIDIA’s GeForce and the new Strategy

 An innovative new service to expand the PC gaming market by Nvidia with high-performance PC in the cloud

nvidia

In June, NVIDIA (NASDAQ:NVDA) launched its new GeForce NOW service in beta to Mac users (available to PC users at a later date). For those out of the loop, GeForce NOW allows gamers to play select games streamed from a virtual, high-performance PC in the cloud. This innovative idea can help gamers with outdated hardware enjoy the wonders of PC gaming.

 

NVIDIA’S GEFORCE NOW  is very simple to setup and start gaming right away. Users download the client app from NVIDIA, and they can immediately download purchased games from digital stores, including Steam, Battle.net, Origin, Uplay, or GOG.

The other aspect of this is that! The real strategy behind GeForce NOW maybe!!! NVIDIA estimates there are more than 200 million GeForce users around the world, and its average selling price for its graphics cards is $180 per unit. That works out to over $30 billion worth of revenue. Of course, NVIDIA isn’t going to suddenly generate that much revenue in one year from its gaming segment.

For NVIDIA to generate significant revenue from GeForce NOW, it would need tens of millions of users to sign up, which is far from certain right now.  But Over the long term, the most beneficial outcome for NVIDIA may be to have customers buy actual GeForce graphics cards for their own PCs rather than rely on the revenue from customers who pay by the hour to use a cloud streaming service. It’s easy for gamers to simply stop paying the $25 for GeForce NOW access.

NVIDIA-GeForce-Now-

 

On the other hand, the software features and support tools NVIDIA makes available for customers who own a GeForce graphics card create a very sticky product for gamers. GeForce graphics cards can behave much like a video game console, encouraging players to pony up for regular generational upgrades. GeForce NOW is a great tool to introduce people to PC gaming and expand the market. But considering the cost and the problems with responsiveness in gameplay, users who really want to dig into PC gaming may be better off investing in the actual hardware. NVIDIA will forge stronger relationships with gamers who go this route, creating loyal customers in the process.

 

NVIDIA Expands GeForce Gaming to Millions More

 

 

Sources:

https://www.fool.com/investing/2017/07/28/the-real-strategy-behind-nvidias-geforce-now-gamin.aspx

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Tags And Keywords:

Technology, video games, nvidia graphics, nvidia graphics new,  games streamed from a virtual,  nvidia high-performance PC in the cloud

 

 

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