PlayGiga Case Study
PlayGiga has seen success with its 2017 launches with TIMGames by Telecom Italia and Turner's Gloud in Argentina and Chile because of its low latency and high quality graphics that have allowed these ISPs to offer cloud gaming at an affordable price to their customers. As a relatively young company, PlayGiga is continuing its expansion efforts in 2018 with goals of penetrating European, Asian, and US markets. Germany, Sweden, Mexico, and Brazil appear to be of particular note as the company expands.
In an effort to find a deeper level of understanding regarding PlayGiga's efforts to partner with ISPs and expand their reach, I've searched telecom and gaming industry sources. I also looked for strategy or planning documents or presentations published by PlayGiga to gain insight into their overall expansion approach. In addition, I've searched startup media sources, such as Startup Explore and Startup Europe, looking for commentary or analyses of PlayGiga by Spanish startup entrepreneurs, but I found no such commentary. I also searched the press releases of Telecom Italia and Turner in search of information related to their deals with PlayGiga, but I found no results using this search strategy.
Many of the articles I encountered were in languages other than English, so I've provided the Google Translate version of each article, where possible.
In a January 2018 presentation by PlayGiga, the company notes that its research suggested that light gamers and families were underserved in comparison to serious gamers, who gravitate to owning the latest game console, and casual gamers, who seek out free entertainment. Light gamers and families are less likely to own the latest gaming equipment because they see gaming as a secondary hobby and, therefore, may be more interested in a monthly subscription option that can be used without investing in a game console.
Their initial launch in August 2017 was as WADE in Spain, while further launches have occurred in Italy via TIMGames by Telecom Italia in September 2017 and in Argentina and Chile via Turner's Gloud in December 2017. These deployments have ranked PlayGiga as the leading Gaming as a Service (GaaS) provider, according to Adara Ventures, which also notes that PlayGiga is 66% less expensive that its competitors in the cloud gaming sector.
PlayGiga's success with these ISPs appears to be related to their "extremely low latency (30ms) and high quality graphics providing a gaming experience similar to a dedicated video console, but at a very low cost." Therefore, ISPs can pass on attractive pricing to their customers. Also, they are targeting a consumer population that is already entrenched in the on-demand services ecosystem, making cloud gaming a natural extension.
PlayGiga appears to have benefited from a relationship with Italian-based digital infrastructure firm Engineering, which designed and developed the Telecom Italia TIMGAMES cloud gaming platform. A 2016 articles at Sabemos also notes that PlayGiga's partnership with Huawei was significant in driving its success because it took the industrial infrastructure burden off of PlayGiga as it courted Spain's Telefónica and Italy's Telecom Italia.
From my research, it appears that Play Giga is still in the process of expanding into new markets, so I did not find any information that suggests they have struggled to sell their service to additional ISPs, just that they are still in the process of that expansion. Several articles discuss, briefly, their plans to expand into other markets throughout 2018.
A March 2018 article at TechNative states that PlayGiga is accelerating its development plans toward additional launches with ISPs in Europe, Asia, and the US, though it does not name specific targets.
Numerous German publications allude to PlayGiga's interest in entering the German market. A March 2018 article Telecom Handel states that PlayGiga wants to enter the German market via ISPs, media companies, and telecom providers. Likewise, a recent article at Computer Base suggests that German ISPs such as Deutsche Telekom and Vodafone, as well as media companies such as ProSiebenSat.1 Media S, would benefit from a service such as PlayGiga.
German-based GamesMarkt states that its May 2018 issue will have more information about PlayGiga's efforts to enter the German market, but that issue does not appear to be online yet.
According to 3D Jeugos, Turner International Argentina's Gloud service, which incorporates PlayGiga to provide gaming, is working toward expanding into other Latin American markets, such as Mexico and Brazil. So it may be that PlayGiga is relying on the expansion efforts of its current ISP partners to facilitate its market reach.
Telekomidag reports that PlayGiga is also courting the Swedish market with hopes of penning an agreement in 2018 or early 2019, though a specific ISP is not named.
In Spain, Telefonica-owned telecom Movistar is looking for volunteers to test its cloud gaming system called Movistar Fusion + Games, which will be powered by PlayGiga.
In conclusion, PlayGiga's cost-effective, low-latency, high-quality service has provided its ISP partners with a low-cost option for on-demand cloud gaming for families and casual gamers. I found no specific information regarding barriers PlayGiga has encountered in selling its service to additional ISPs, which may be because its efforts to expand into additional markets is currently underway. In 2018, PlayGiga has hopes of entering US, European, and Asian markets, with their current focus on Germany, Sweden, Mexico, and Brazil.