The development of cloud Games has attracted much attention. From the signal of financial and material investment intensity in various fields, cloud games will enter a rapid growth period in the next 3 to 5 years. According to the latest research report of CSC, the big screen cloud game may be the first landing scenario of 5g application. In a shares, Lehman Optoelectronics (300162), which provides core HD large screen equipment micro led, and Shunwang Technology (300113), which provides players with large screen cloud game services, will benefit significantly.
Cloud game is a game mode based on cloud computing, running on the cloud server, compressing the rendered game picture and transmitting it to users through the network. It solves the pain points of users’ game hardware and system and game content, and has become the future trend.
According to statistics from statista, in 2019, the global game market scale was USD 81.1 billion and the global cloud game market scale was USD 9.7 billion. The global cloud game market scale will maintain a growth rate of more than 47%, and is expected to reach USD 45 billion by 2023.
The industry believes that the big screen cloud game will stand out in the cloud Game track with its multi-directional advantages. In recent years, China attaches great importance to UHD industry. With the evolution of the industry, the promotion of 4K in TV channels / online video is gradually accelerated, but the layout of games with stronger interactivity and more need ultra-high definition large screen performance is relatively slow, which is closely related to the performance requirements of games on the host. The emergence of cloud games just solves the problem of weak performance of large screen computing through cloud computing. Strong interaction + HD visual experience is realized through cloud games.
The large viewing angle based on the large screen has the advantages of better telepresence, wider color gamut space, high frame rate without jamming, three-dimensional sound field and so on. For high-quality host games and even 3A masterpieces, the large screen and small screen are still the better choice. In addition to the host game, the large screen will be used as the visual projector of existing online games and mobile games, and the handle will be used to build a new sense of interaction. The original game will also present a new experience.
Therefore, the high-quality standard involving big screen cloud games is also becoming a “sweet cake” in the capital market. For example, Lehman Optoelectronics (300162), which is the first in the industry to independently launch and mass produce micro led ultra-high definition display products based on cob advanced integrated packaging technology, is also the only ultra-high definition display enterprise in the industry with mass production capacity of micro LED products based on cob technology.
On July 27, Lehman optoelectronics said on the interactive platform that the large ultra-high definition display screen can provide users with higher quality audio-visual entertainment functions, and further provide richer, smarter and more personalized use experience, which is suitable for terminal display such as cloud games. With the development of 5g era, the continuous emergence and development of emerging application fields will bring more market opportunities for the development of UHD display industry. Large UHD display screen has a broad market space. The company’s Micro led ultra-high definition display large screen products based on cob technology have high protection, high reliability and excellent display effect. They can realize man-machine interactive immersive experience, meet the needs of ultra-high definition intelligent display in 5g era, and are widely applicable to cloud games and other fields.
It is worth mentioning that among the listed companies of LED display, Lehman optoelectronics is also the only led display enterprise covering the midstream and downstream. The complete industrial chain layout is an important embodiment of the company’s core competitiveness. Through the integrated layout from packaging to application and the integration of various technologies in the middle and downstream of the LED industrial chain, the company’s product production process can be greatly shortened, the production material cost can be reduced, and the company’s production efficiency and product quality can be improved.
Another example is Shunwang technology, a leading Internet cafe platform service provider in China. On March 23, 2020, the company held an online press conference and officially released Shunwang cloud game products (including cloud game box and handle). It is the first cloud game system integrating software and hardware in China to provide players with large screen cloud game services.
CSC Securities believes that in the initial stage of cloud game landing, the large screen can better highlight the differentiated experience of cloud games, seize the core users, and then better promote cloud games. Big screen cloud games may become the first landing scene of 5g, and relevant listed companies usher in a good opportunity for development.