Google launched Stadia in November 2019 with the expectation of revolutionizing the video game industry. More than a year later, however, the result of this endeavor is a major failure and an astronomical amount of money spent on services that at this point will have no return.
In a report on Bloomberg, journalist Jason Schreier revealed several details about the backstage of the platform. According to him, the internet giant spent “tens of millions” to receive games like Red Dead Redemption II.
“The amount of money that Google was willing to spend was a shock to veteran developers,” said Schreier.
Despite the expenses, according to an internal source, the players did not like the business model that required the purchase of each game in particular. The amount of up to US $ 60 charged left many people unhappy, which generated a ripple effect. This problem affected the sales target for controls, which was well below expectations.
Currently, according to Mat Piscatella, market analyst, the service has less than 80 games available. The article recalls that one of the results of this collapse was the closure of several internal studios that were developing titles for Stadia.
Future of game streaming
The Google Stadia case has launched a warning to other companies that are developing game streaming platforms. The belief of the owner of the largest search engine in the world that she could transform an entire sector with an untested idea was crucial to the negative result.
Phil Harrison, who was in charge of the gaming platform, went so far as to say that it would be the “future of games” and that Stadia would be more powerful than the PlayStation and Xbox.
Schreier recalls that Google used to test services and products for some time before betting tens of millions of dollars on them. The case of Gmail, which was in beta for 5 years, is an example of the practice that the company has already adopted for a while.
This story should serve to keep Amazon and Microsoft, working on xCloud and Luna, respectively. The giants are expected to keep expectations low and launch the tools gradually, so that they do not fail miserably like the competitor.