Google Closes Its Game Development Studio

  • Google Stadia game streaming platform shuts down its game development unit.
  • The platform will stream games from third-party developers.

Alphabet Inc’s Google is going to shut down Stadia, its internal game and entertainment development department, the company announced yesterday. The Stadia will operate as a game streaming platform from third-party developers, but will not develop its own games from now on.

Google Stadia is a cloud-based gaming platform that utilizes mobile apps to stream games from Google’s servers to user devices. Its game development studio’s mission was to create games and experiences exclusively for Stadia.

Gaming development closed

The Stadia was launched back in 2019 together with its internal game development department. Now the company is closing it will not be investing further Google Stadia’s vice president and GM Phil Harrisoncompany explained in the company’s blog post:

Given our focus on building on the proven technology of Stadia as well as deepening our business partnerships, we’ve decided that we will not be investing further in bringing exclusive content from our internal development team SG&E, beyond any near-term planned games.

According to him, the process of creating best-in-class games requires a lot of time and capital, while the costs are growing exponentially.

From now on Google is closing its game studios both in Los Angeles and Montreal. The majority of its team will be moving on to new roles. The team executive Jade Raymond, a longtime producer, and executive at both Electronic Arts Inc and Ubisoft, is said to have left the company.

On the flipside

  • Creating video games is an extremely expensive business. For example, creating the latest hit Cyberpunk 2077 required up to $313 million to develop.
  • Other tech giants like Amazon that entered the video gaming industry are also struggling to offer a winning game.

Partnerships with biggest game creators

With its own game development department shut down, Google Stadia will no longer be a rival for big players in the game industry. Furthermore, the company will collaborate with them.

The streaming platform is already popular due to its ability to offer the latest games without the need to have expensive physical hardware.

Although it does not stream every game of PS5 and Xbox Series X, some of the biggest releases like CyberPunk 2077, Assassin’s Creed Valhalla, Immortal Fenyx Rising, PUBG, Hitman 1 & 2, or Borderland 3 are available to its users.

Google Stadia is available on most devices and is expected to operate with Chromecast apps and Google TV by the first half of 2021.

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