Why there may never be a Netflix of videogames

In the small conference room of a Palo Alto, Calif. office Asher Kagan explains a smartphone-sized gadget his company hacked together that seeks to better understand the blockade between him and a service the world has long imagined.

The vision for that service, cloud gaming, resembles Netflix Inc. NFLX, -0.28% which dispensed with DVDs and cable bundles in favor of streaming content from a faraway data center. Done right, cloud gaming could make powerful, expensive gaming computers and even widely popular consoles into garage-sale relics and irrelevant to the billion-plus people who play videogames world-wide.

All they would need is a screen and the internet.

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