Google Stadia Shuts Down Internal Studios Due to High Costs

Whenever Google releases something new there is this general notion that Google may close it any day. That’s why when Google announced the Google Stadia I was really excited but at the same a little bit skeptical given this past record of Google. Don’t afraid Google isn’t shutting down the Google Stadia platform (yet), rather they are shutting down the internal game development studio citing the high cost. 

What is Google Stadia Studio: Google Stadia’s in house studio known as SG&E or Stadia Games and Entertainment was created with the plan that it would create original games for the platform. It was launched in 2019 along with Google Stadia. 

Why Google shutting it: Due to the high-cost Google is shutting down the operation. “Creating best-in-class games from the ground up takes many years and significant investment, and the cost is going up exponentially,” Phil Harrison, vice president, and general manager of Google Stadia, said in a blog post.

  • Google has also justified the decision by saying that the core focus of the platform is to allow people games without installing them on the computer. That’s why Google will continue bringing games from third-party game publishers.
  •  Google will close its two-game studios, located in Montreal and Los Angeles. Google will try to find new roles in Google for the 150 developers working there. 

What is it means for you: Simply nothing really. Google Stadia platform isn’t going anywhere means you will still be able to play games currently available on the platform just fine. As Google stated, “We’re committed to the future of cloud gaming and will continue to do our part to drive this industry forward. Our goal remains focused on creating the best possible platform for gamers and technology for our partners, bringing these experiences to life for people everywhere.”

What Google missed: Google simply didn’t have the idea how much money, time, and effort needed to create a top-class AAA game. It is not a simple process and takes years to master. Even the experienced one fails sometimes and Cypherpunk 2077 is a good example of that.

  • It is also true that when Google Stadia was first announced it didn’t have any competition. But over time Microsoft xCloud, Geforce One took user share from the Google Stadia. That way Google realized that it isn’t a good business model to invest money and resource into game development. 
  • Google simply missed an opportunity to bring exciting new platform only AAA games that can bring more users to the platform.

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