Google Stadia Shutting Down Internal Development Studios

Google has announced that they will be shutting down the internal development studios they created for Google Stadia, the streaming service the company launched in 2019. In the announcement, Google Stadia Vice President and General Manager Phil Harrison attributes the decision to the rising costs of game development and the amount of time needed to create “best-in-class games.”

Instead of creating their own games, Google Stadia will continue partnering with companies to bring their games to the platform. “We see an important opportunity to work with partners seeking a gaming solution all built on Stadia’s advanced technical infrastructure and platform tools,” Harrison says in the announcement. “We believe this is the best path to building Stadia into a long-term, sustainable business that helps grow the industry.”

According to Kotaku, this closure will affect around 150 employees. Google says that they will be supporting those developers by moving them into new roles within the company over the coming months. Jade Raymond, a veteran of the games industry, will also be leaving the company according to Google.

Anyone who is currently a Stadia owner or plans to be one can still join up and play any games they have. The company maintains that they are committed to cloud gaming and want to push the industry forward in this realm. “Our goal remains focused on creating the best possible platform for gamers and technology for our partners, bringing these experiences to life for people everywhere.”

This news is unexpected, though not too surprising. Google Stadia has not been a major hit, and it’s faced steep competition from Microsoft’s xCloud service that has proven to be the more appealing option to many gamers. Microsoft already plans to bring their cloud gaming service to PC and iOS this Spring, and they might even make it available on TVs through either a streaming stick or an app. Perhaps this shift in business strategy will better serve Stadia in the long run.