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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.