Google Stadia, a cloud gaming service launched by Google in November 2019, was an ambitious attempt to enter the gaming industry by allowing players to stream games directly to their devices without needing powerful hardware like consoles or gaming PCs. The concept was straightforward: the game itself would run on Google’s servers, with only the video feed being streamed to the user, who could then control the game from their device. Stadia was compatible with PCs, Chromecast-enabled devices, and TVs, allowing users to play on low-power computers.
Google positioned Stadia as a platform capable of streaming video games in up to 4K resolution at 60 frames per second, with support for HDR and surround sound. Users needed only a controller and a device with internet access—no additional physical equipment was required.
Stadia’s Business Model
However, like any large company, Google faced challenges with decision-making that often prioritized management directives over market logic. This led to some missteps, one of which was the game acquisition model. Users had to purchase games individually, a departure from the subscription-based models like Xbox Game Pass, which offered access to a large library of games for a monthly fee. While Stadia did offer a Stadia Pro subscription, it provided access to a limited selection of games and some advanced features. By trying to maximize profits without first building a substantial user base, Stadia positioned itself as an outsider in the industry from the start.
The Decline of Stadia
It’s likely that Stadia was given a one-year window for its launch and development. After this period, the platform’s success would determine whether it would receive further investment or be shut down. Unfortunately, Stadia never achieved the user base that Google had anticipated. By 2021, the decision was made to scale back funding, and the internal game development studios—already struggling—were closed.
Stadia’s Shutdown
In September 2022, Google announced that Stadia would be shutting down its services on January 18, 2023, citing a lack of user support as the primary reason. The company also promised to refund all Stadia hardware purchases made through the Google Store, as well as all game and additional content purchases. After three years—two of which were marked by a slow decline—the service was officially terminated. The lesson here is clear: you can’t expect to profit in an industry without first making significant investments.
