Service Providers to Challenge Game Console Market

AT&T, Verizon Communications, Time Warner Cable Inc., Comcast and Cox Communications are gearing up for a push to deliver video games directly to televisions, Bloomberg :reports, a strategy shift that poses a threat to traditional consoles such as the PlayStation, Wii and Xbox, and shows how ecosystem partners increasingly find themselves competitors as well.

With cloud gaming, consumers will be able to avoid buying Sony’s PlayStation 3, Microsoft’s Xbox 360 or Nintendo’s Wii, and play using generic controllers connected to their set-top box or TV. Some carriers are looking at software that turns smartphones into controllers.

There still are a few technical upgrades required to set-top boxes, such as more powerful graphics processors. But none of that is a show stopper.