Google closes Stadia game studios
Google is moving away from its plans to build its own games for Stadia, halting project development and closing its studios in Montreal and Los Angeles.
Just over a year after the launch of the Stadia platform, the Google is starting to limit its activities to games. The company closes the two game development studios and cancels its work.
The Stadia is a streaming platform cloud-based and launched on November 19, 2019. Google launched the Stadia Games and Entertainment division in March of that year, handing over its management to former Assassin's Creed game producer Jade Raymond.
Raymond is now leaving Google. At the same time, the closure of the Montreal and Los Angeles studios will affect 150 developers. Google has said it will try to find new roles for these employees.
Google will continue to operate Stadia as a gaming service, for Stadia Pro, at a price of $ 10 per month.
Big tech companies like Google and Amazon have made ambitious efforts in recent years to get into game development, but with little or no results. Nothing at all worth the effort and investment. Amazon released the online shooter Crucible in May. It stopped growing in October. Amazon's New World MMO will be released this year.
Stadia is rather a victim of bad timing and bad planning. The release of Stadia in 2019 became a difficult time, as that year the Switch entered the market strongly. Also, many gamers have been waiting patiently for the PlayStation 5 and Xbox Series X / S releases. In addition, there is competition within the cloud-streaming space itself, which was reheated when Microsoft made xCloud a part of the Game Pass Ultimate package. .
Google certainly has the money to take risks with companies like gaming, but knowing that it does not depend on Stadia's success to stay profitable, the company is able to abandon the business very quickly and easily (or reduce it).