There are some interesting differences between 5GG cloud gaming and ActivePort/Radian Arc cloud gaming.
1. 5GG resell the Nvidia Geforce Now product direct to the market so have to wear the cost of customer acquistion and then make money from operations. Geforce is cumbersome, expensive and limited in functionality. RA sells through the telco channel to an existing audience of network subscribers on a revenue share model that sees the publisher, the telco and the content licensee share the revenue. The AMD/ATV platform is lightweight, fast and flexible enough to host multiple produce variations simulatneously.
2. ActivePort/RadianArc/Blacknut/AMD together created their competing platform to Geforce. There are only two GPU providers to the gaming industry (AMD and Nvidia) and so you can say that ActivePort's technology on AMD GPU's is 50% of solution options in the industry.
3. Every Playstation, Xbox and Steam Deck has a AMD GPU and so AMD is arguably the dominant vendor in the GPU space for gaming. AMD is a significant investor in Radian Arc and so this isnt an isolated play. RA/AMD/ATV are building this together.
4. 5GG resell Geforce Now in the Australian Market of 27M people. Most gamers here already have a $4k PC or a Playstation or an Xbox and high speed internet to their homes and so the use case for Cloud Gaming is limited to those that want to remain glued to their game while they're on the move. Contrast that to countries like India and Indonesia where millions of potential gamers dont have ready access ot the same tech. In those regions, Cloud Gaming is the becoming the default solution using a 5G data plan and a low cost 5G phone from China. Radian Arc has contracts in place today with telcos to deliver cloud gaming to a collective subscriber base in excess of 3 billion users.
5. The cross shareholding is an artefact of the formation of RA pre-IPO of ATV. No one knew cloud gaming would take off back then and ATV wasnt listed so at the time no one really gave much thought to the optics down the track. Upside is that theres alignment from top down which is favourable to investors in both RA and ATV.
6. The tech Mark and the ATV team are building to deliver cloud gaming at scale to millions of concurrent users is next level brilliance. Version 3 is designed to enable automated deployment of 10's of thousands of servers across the planet. If it monetises to plan then the upside for ATV holders should be significant.
7. The upside beyond gaming is that other customers are now seeking this tech to host their own virtual GPU's for new applications such as AI.
ATV Price at posting:
8.2¢ Sentiment: Buy Disclosure: Held
