Inside Google's Plan To Salvage Its Stadia Gaming Service

Google is trying to salvage its failing Stadia game service with a new focus on striking deals with Peloton, Bungie, and others under the brand “Google Stream.” Business Insider reports:

When Google announced last year that it was shutting down its internal gaming studios, it was seen as a blow to the company’s big bet on video games. Google, whose Stadia cloud service was barely more than a year old, said it would instead focus on publishing games from existing developers on the platform and explore other ways to bring Stadia’s technology to partners. Since then, the company has shifted the focus of its Stadia division largely to securing white-label deals with partners that include Peloton, Capcom, and Bungie, according to people familiar with the plans.

Google is trying to salvage the underlying technology, which is capable of broadcasting high-definition games over the cloud with low latency, shopping the technology to partners under a new name: Google Stream. (Stadia was known in development as “Project Stream.”) The Stadia consumer platform, meanwhile, has been deprioritized within Google, insiders said, with a reduced interest in negotiating blockbuster third-party titles. The focus of leadership is now on securing business deals for Stream, people involved in those conversations said. The changes demonstrate a strategic shift in how Google, which has invested heavily in cloud services, sees its gaming ambitions.

Google has continued to prop up the Stadia consumer platform with a steady stream of titles. After Google closed Stadia’s internal game studios, known as Stadia Games & Entertainment, insiders said the directive was to build out what was internally dubbed a “content flywheel” – a steady flow of independent titles and content from existing publishing deals that would be much more affordable than securing AAA blockbusters, two former employees familiar with the conversations said. “The key thing was that they would not be spending the millions on the big titles,” one said. “And exclusives would be out of the question.” Executives and employees for the Stadia product have also shifted roles. Phil Harrison, the former PlayStation executive Google tapped to run its gaming operations, now reports to the company’s head of subscriptions. Patrick Seybold, a Google spokesperson, told Insider in a statement: “We announced our intentions of helping publishers and partners deliver games directly to gamers last year, and have been working toward that. The first manifestation has been our partnership with AT&T who is offering Batman: Arkham Knight available to their customers for free. While we won’t be commenting on any rumors or speculation regarding other industry partners, we are still focused on bringing great games to Stadia in 2022. With 200+ titles currently available, we expect to have another 100+ games added to the platform this year, and currently have 50 games available to claim in Stadia Pro.”

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