Meet Kutuluh, the Mexican startup creating the “Netflix of video games”

Contxto – From Magnavox Odyssey to Xbox Live to a console powered through cloud technology – the video game industry is constantly evolving.

Since they first appeared on the market in the 1970s, cloud gaming seems to be the next frontier. The latest development comes from Kutuluh Cloud Gaming, a Mexican startup from Monterrey. Based on reports, the tech group is on track to becoming the “Netflix for video game entertainment.”

Who is Kutuluh?

Full of techies and self-proclaimed “geeks at heart,” it’s apparent that the Kutuluh team loves what they do – cloud gaming. These brainiacs have manufactured a high-speed cloud server allowing users to purchase and play games from their computer or smartphone.

“User can play video games from Firefox or any other browser without having to install an application,” said Kutuluh co-founder, Fabian Castillo Murguía. He created the company alongside Marcela Ferriño Morillón.

What does Kutuluh want to accomplish?

Video game entertainment whenever you want, however you want. Kutuluh intends to give users total freedom in this regard, especially in Mexico with 55.8 million gamers. From this number, about 39 percent of users are cross-platform gamers.

So far, Kutuluh has a projected audience of 5.2 million users. To boost publicity, the company will hold an open beta (a free test trial open to the public) from July to November. If all goes as planned, Kutuluh will release the virtual console in December.

Besides building a strong fan base in Mexico, other countries on Kutuluh’s radar include Brazil and Colombia due to their robust gamer culture.

What is the company’s status?

Today, the Kutuluh team is raising capital while pursuing some acquisition projects in collaboration with crowdfunders, ArkAngeles. While the team already earned Steam licensing rights, they’re also trying to obtain content from Blizzard Entertainment. If Blizzard doesn’t ring a bell, it’s the mastermind behind classics such as WarCraft, Diablo, etc.

Although Kutuluh is still in the preliminary stages of development, officials have a lot up their sleeves. For example, the firm plans to sell the cloud gaming system in three credit packages ranging between 60 pesos to 6,000, depending on how much of a hardcore gamer you are.

How does Kutuluh stand out from competitors?

Executives at Kutuluh say their “secret weapon” against competitors like Microsoft or Amazon is the company’s data center with a state-of-the-art cooling system. In case you didn’t know, energy costs tend to quite steep for cloud technology companies since software must be kept in frigid temperatures.

Specifically, launching new data centers can cost between US$5,350 and US$10,700. To save money while boosting operations, Kutuluh created technology capable of reducing cooling costs by 72.5 percent.

Conclusion

I must admit, I’ve always been skeptical of the video game industry due to its tendency for “planned obsolescence.” That’s to say, developers constantly roll out new devices to replace older products with the latest software. Consoles that cost hundreds of dollars become antiquated (read: useless) in the process.

All things considered, this can be a ruthless marketing strategy, especially for consumers’ wallets. However, sometimes new developments are unlike any of its predecessors. This is why I have an open mind with Kutuluh.

-JA