Google is determined to keep Stadia going, and that’s leading it to make some hard cost-cutting decisions. In its latest blog post, the internet giant announced that it’s “winding down” Stadia game studios to help it focus on the cloud-based service and its growing partnerships.
The company is ending investment in Stadia Games and Entertainment’s exclusive titles outside of “near-term planned” projects. It’s not sure just when the Stadia studios’ few exclusives will arrive, but the move will cost Google some top talent — SG&E lead and well-known developer Jade Raymond is leaving the firm. Other team members will find new roles in the months ahead.
The shutdown and changing focus will help Google shape Stadia into a “long-term, sustainable business,” VP Phil Harrison said.
“Creating best-in-class games from the ground up takes many years and significant investment, and the cost is going up exponentially. 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,” Harrison continued.
The executive stressed that little would change for Google Stadia subscribers. Stadia will carry on as it usually does, and you’ll see more third-party games added over time.
It's unclear whether this is just a precautionary measure or a red alert for Stadia's future. However, it’s evident Google is eager to trim costs and might have expected Stadia to grow faster and support the development of exclusive Stadia games in-house. As it turns out, Stadia has probably fallen short so far.