Google Play Games v3.3 is taking game streaming to the next level as it now features support for game screen recording and YouTube livestreaming.

YouTube Gaming lets users livestream games and record a video of the game without installing a third-party app. The new app also features channels for a wide variety of games, such as Machinima, Markiplier, The Game of Theorist, The Bajan Canada, and many others. There are also channels for the most popular games.

Launched in August, YouTube Gaming connects gamers to a wide array of video games and livestreams all in one place. The gaming website was designed to counter the efforts of Twitch, the market leader in gaming video content.

The new service is a good move for Google, considering the 11 percent growth of the video game market this year. E-sports is also a highly profitable industry in Asia. It's clear that Google wants to merge the growing game video and livestremaing market with the huge and flourishing smartphone market to give itself an edge in both arenas.

To compete with Twitch for a huge slice of the $3.8 billion gaming video market, Google relies on interactive entertainment to attract users. However, despite its high number of viewers, the company lags behind Twitch when it comes to revenue. YouTube Gaming earns 36 percent of the global gaming video content revenue, while Twitch gets 43 percent.

While YouTube boasts higher video quality and more advanced features, Twitch has successfully nurtured a strong online and offline community with its gaming-specific features.

Later in September, Twitch is slated to host its first annual TwitchCon in San Francisco.