Google Decided to Close its Game Development Division

Tech companies are willing to invest millions of dollars in various services and products. However, sometimes it costs a lot of money to develop these products. As such, some companies are not always willing to invest money in such projects. Interestingly, Google made an important decision. According to the announcement, the tech giant decided to close its internal Stadia game development division.

The company decided to refocus Stadia to be a home for streaming games from existing developers. This is as opposed to developing its own games for the service. It is no secret that it costs a lot of money to create the best games. Moreover, companies have to spend several years to create solid games. 

It is worth mentioning that, as part of the change, the company is shutting down both Los Angeles and Montreal game studios. As a reminder, studios existed under the Stadia Games and Entertainment banner. Based on the information provided by the tech giant, most of the Stadia Game & Entertainment team will be moving on to the new roles. However, Jade Raymond, who was in charge of Stadia studio teams will leave the company.

Google and the gaming industry

Interestingly, Stadia is here to stay alongside the $9.99 Stadia Pro subscription service. This will continue to exist forward and Google may continue trying to secure exclusive (or timed-exclusive) third-party titles to offer through its subscription. Moreover, any “near-planned” games will still be out on Stadia as well.

However, Google’s decision to close in-house studios marks a serious blow to the company’s gaming ambitions. Beyond the mere technical aspects of the streaming service itself, the fact that Google was willing to invest in multiple first-party studios was one of the most important parts of the original Stadia vision.

Importantly, it was a sign that Google aspired to one day introduce exclusive games that could compete with companies like Microsoft, Nintendo, and Sony. As a reminder, all of them rely on their own in-house studios to create key exclusive games to drive players to their services.

As a result of this decision, it will be harder to attract new users. Interestingly, Stadia’s future will likely be relegated to just another option where people can play the same games as they can already play on a PS5, Xbox Series X, or PC. However, Google will save money as it costs a lot of money to develop a good game.