Aethir, in partnership with SuperScale, conducted a study to examine how decentralized cloud infrastructure can help gaming companies reduce user acquisition costs. The collaboration focused on testing Aethir’s cloud gaming solution, which enables studios to bypass traditional app stores and their high service fees. By using decentralized GPU cloud resources and compensating companies with underutilized GPUs through web3 tokens, Aethir provides an alternative method for game distribution.

Game publishers typically rely on app stores for visibility and downloads, but this model comes with significant costs. Some platforms take up to 30% of a studio’s revenue, adding financial strain on developers. Aethir’s cloud gaming infrastructure aims to change this by offering instant play and streaming solutions, allowing users to experience games directly from a web link or advertisement without downloading an app.

Amplify Engagement Profitability 

Industry Challenges

Paul Thind, Chief Revenue Officer at Aethir, pointed out in an interview with GamesBeat that rising user acquisition costs, high revenue shares taken by app stores, and expensive infrastructure requirements have created financial difficulties for game developers. Traditional publishing models often require substantial marketing investments, and the need for users to download a game before trying it can reduce conversion rates and increase costs. Aethir’s solution offers a direct-to-consumer approach through cloud streaming, allowing players to access games instantly without installation.

By incorporating Progressive Web Apps (PWAs) and direct web play, publishers can reduce acquisition costs while improving engagement and retention. This approach eliminates friction in the user experience, making it easier for players to discover and interact with new games. The findings from SuperScale’s case study highlight a shift in game distribution, demonstrating that cloud gaming can provide publishers with more control over their revenue and user acquisition strategies.

SuperScaale Ecosystem

Insights from SuperScale’s Case Study

SuperScale conducted a two-phase case study to evaluate the effectiveness of Aethir’s cloud gaming technology. The first phase focused on determining whether allowing players to experience a game before downloading it could improve engagement and lower the cost per install (CPI). The study tested the mobile game Tiny Tower with three different creative approaches: “Stream Now,” “Instant Play,” and “Download.” The results showed that 43% more players preferred instant play over downloading, while conversion rates increased by 45% and click-through rates improved by 35%.

The second phase of the study examined return on ad spend (ROAS) and early user engagement. Players were given the choice to either download the game from the app store after seeing an ad or try it immediately using Aethir’s streaming feature. The data revealed a 143% increase in users choosing the streaming option over downloading from the app store. Additionally, metrics such as D7 ROAS, average revenue per user (ARPU), session count, and retention rates all showed significant improvements.

SuperScale's Partners

Benefits of Cloud Streaming for Game Publishers

Aethir’s decentralized cloud gaming solution provides multiple advantages for game studios looking to optimize their user acquisition and monetization strategies. By bypassing traditional app stores, developers can retain a larger share of their revenue while expanding their reach to broader audiences. Games that incorporate instant play mechanics benefit from increased discoverability, as users can try a game before committing to a full download or purchase.

The technology also allows games to be played across various devices, including PCs, mobile phones, and smart TVs, without the need for multiple versions of the game. This eliminates compatibility issues and reduces development complexity. Furthermore, the ability to integrate alternative monetization strategies, such as subscription models, direct microtransactions, and ad-supported gameplay, provides publishers with greater flexibility in how they generate revenue.

SuperScale Team

Shift Toward Cloud-Based Game Distribution

As game developers face growing financial pressures, cloud gaming solutions like Aethir’s provide a compelling alternative to traditional distribution methods. SuperScale’s case study demonstrates that leveraging cloud streaming for user acquisition can lead to better engagement, higher conversion rates, and improved revenue retention. The results indicate that cloud-based distribution is becoming a necessary strategy for game studios looking to scale efficiently in an increasingly competitive market.

With the ability to reach larger audiences, reduce acquisition costs, and improve monetization options, Aethir’s decentralized cloud gaming infrastructure represents a shift in the industry. Publishers and developers exploring direct-to-consumer strategies may find that cloud streaming offers a viable path forward, minimizing reliance on app stores and maximizing profitability. The findings from SuperScale’s research provide clear evidence that adopting cloud gaming technology is not only beneficial but essential for long-term success in the gaming industry.

Source: GamesBeat