Google to Shut Down Its Game Development Studios

Category: Business


Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. cloud-based / ˈklaʊd beɪst / (adj) – stored, managed, and processed on the internet rather than on a personal computer

    The cloud-based streaming service lets users listen to music on different devices.

  2. penetrate / ˈpɛn ɪˌtreɪt / (v) – to successfully enter a particular market to offer one’s products or services

    The startup aims to penetrate the Japanese market.

  3. tie up / taɪ ʌp / (phrasal) – to partner with another person or company to do business together

    I decided to tie up with a local bookstore so that I can sell books in my café.

  4. cause for alarm / kɔz fɔr əˈlɑrm / (idiom) – a reason to be worried

    His sudden weight loss was cause for alarm.

  5. established / ɪˈstæb lɪʃt / (adj) – successful and known for a long time

    It’s an established insurance company that has been around for 20 years.


Read the text below.

Google announced that it is shutting down its game development studios for Stadia, the tech giant’s cloud-based video game platform.

Launched in 2019, the gaming platform was an attempt by Google to compete with video game consoles like the PlayStation and Xbox. The platform allows users to stream and play games on smartphones, web browsers, and even on televisions. Google created Stadia to penetrate markets like India, where many people cannot easily afford video game consoles.

In a statement, Google said that it will stop developing games for the platform due to high costs. Instead of releasing its own original games, the company will tie up with third-party game publishers.

Google will close its game studios, which are located in Canada and the US. The shutdown will affect around 150 game developers, but the company reported that it is finding new roles for the employees. However, Jade Raymond, the executive in charge of Stadia Games and Entertainment, will be leaving the company entirely to pursue other opportunities.

Google assured Stadia users that the shutdown is no cause for alarm, as they can still continue playing games on the platform. The company also promised to eventually release new games from third-party developers.

The Stadia shutdown was met with different reactions from analysts. One said that Google’s decision to stop producing its own exclusive games on Stadia will reduce the company’s chances to compete against its established rivals in the gaming industry.

Another believes that Google could still be successful in the industry by taking advantage of its unique technology. He said that the company should license Stadia’s cloud streaming technology to other companies because it is likely to become popular in the future.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think it was a good idea for Google to tap into a market that cannot afford traditional game consoles? Why or why not?
• Do you think Google made the right choice to just partner with third-party game publishers for Stadia? Why or why not?

Discussion B

• In your opinion, is it a good idea for a company to venture into an industry that is different from its area of expertise (e.g. a furniture company that starts selling food)? Why or why not?
• Which do you think is better, to focus on one industry or to venture into as many as possible? Why?