Google closes internal game development studios Stadia

ARCHIVE PHOTO: Spectators watch during a Google speech announcing a new video game streaming service called Stadia that tries to capitalize on the company’s cloud technology and global data center network at the Gaming Developers Conference in San Francisco, California, USA, March 19, 2019. REUTERS / Stephen Lam

(Reuters) – Alphabet Inc’s Google said on Monday it would halt internal game development for Stadia, making the cloud-based game streaming service entirely dependent on titles from other game developers and publishers.

Stadia was launched in 2019 along with an internal game development unit that was supposed to make titles for the platform.

The company said on Monday that it is closing the unit due to the high costs involved in developing games that attract users.

“Creating the best games from scratch takes many years and significant investment, and the cost is rising exponentially,” said Phil Harrison, vice president and general manager, Google Stadia, in a blog. (bit.ly/2YDcfqQ)

Harrison also said that Jade Raymond, head of Google’s Stadia Games and Entertainment, would leave the company to pursue other opportunities.

Stadia saw an increase in the number of users last year, after the tech giant offered two months of free access to its premium version for players who take shelter at home due to the COVID-19 pandemic.

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