"Cloud gaming" has been a buzzword for years. The idea is that in future we'll no longer need gaming PCs as all the heavy lifting will be done "in the cloud." James LaLonde, co-founder of Yodo1 Games, called cloud gaming the most attractive area of the market for big investors.

In theory, cloud gaming has several advantages over traditional gaming. Getting rid of expensive gaming hardware is the vital thing that satisfies players' appetites. It also allows games to become more platform-independent and serves pre-installed games for users. 

Cloud gaming is similar to a streaming platform, like Netflix, or other video services that deliver video from the cloud, according to LaLonde. "So the idea now is we can play the game in the cloud," he said, "If you want a whole bunch of games that you can play anytime you want, you can buy those packages very cheaply."

Graphics is the biggest challenge for promoting cloud gaming. Traditional games in PC have the hardware power nearby that can allow rendering to make the game screen beautiful and realistic. LaLonde said few companies have the experience to do it.

Google is the first one out of the gate. The company said its game streaming service Stadia can pretty much replicate console games, including beautiful graphics and user experience. Meanwhile, LaLonde mentioned the creative part is also a priority.

"If Google provides the plumbing really well to the ecosystem, then the creative part comes out and we can get some really cool applications that we've never seen before," he said.

Cloud gaming is taking the video game industry by storm. Each company is at least hedging against a future where discs, downloads and even consoles are no longer required. LaLonde said the new trend is not widespread at the moment, but the company would remain attentive to see what happens in the next couple of years.