Google has announced changes in its strategy for the development of the streaming platform Stadia, which include the closure of in-house game development studios Stadia Games and Entertainment in Los Angeles and Montreal. Instead of creating exclusive games, Google intends to focus on supporting the streaming platform and promoting it among third-party developers and publishers.
Google VP and Head of Stadia Service Phil Harrison noted that “building best-in-class games from scratch takes many years and significant investments, and the cost of such projects is growing exponentially“. He also announced that Google will no longer invest in creating exclusive content for Stadia, and planned future projects of SG&E internal studios will be canceled. But this does not apply to games that have already been announced and the launch of which should take place in the near future.
Google is closing its game studios in Los Angeles and Montreal, most of which will move into new roles within the company. As for SG&E studio head Jade Raymond, she will leave the company. Previously, Google planned to use its own studios to develop AAA-exclusives for the Stadia platform, which was an essential part of the service’s strategy. But this change in approach shows that developing high-level games is too costly and difficult. Thus, in the future, the Stadia service will offer users the same games that they can play on other platforms – PlayStation 5, Xbox Series X or PC.
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