Bloomberg Intelligence research says cloud gaming and AI-driven changes in game delivery could eventually reduce home consoles to a niche product. The research estimates streamed games could reach a $38 billion market by 2035, shifting consumer spending away from dedicated hardware.
The analysis links the outlook to economics in computing power. It suggests that home consoles may lose their mass-market role if surplus GPU capacity drives down compute prices later this decade. Multiple outlets note that this key condition has not yet occurred, meaning the timeline depends on how quickly GPU oversupply translates into cheaper processing for streaming services.
Both reports present the same central claim: the growth of streamed games—potentially supported by AI—poses a long-term competitive threat to consoles. They also frame the forecast as contingent on market and cost dynamics for cloud infrastructure, rather than as an immediate industry collapse.
