Google enters battle for cloud gaming market
Analysts say Stadia’s outlook is uncertain due to tough competition from rivals
Ever-expanding Google becomes a gaming company on Tuesday with the launch of its Stadia cloud service that lets people play consolequality video games on a web browser or smartphone.
The internet giant hopes to break into the global video game industry expected to top $150 billion this year, with cloud technology that could broaden audiences attracted by rich new features as well as ease of access with no more need for consoles.
But analysts say Stadia’s outlook is uncertain as its faces rivals such as PlayStation Now in an emerging and highly competitive market. Stadia plays into a trend in which content — ranging from blockbuster films to work projects — lives in the cloud and is accessible from any device. “All of these new services are merely pointing out that we don’t need sophisticated hardware in the home to access entertainment,” said Wedbush Securities Managing Director Michael Pachter.
Google last month sold out of “Founder’s Edition” kits, which are priced at $129.
Each kit contains a Stadia controller and a pendant-shaped Chromecast Ultra wireless connection device that plugs into television sets. Stadia games are playable using Google Chrome web browser software on computers. It also works with Google-made Pixel smartphones from the second-generation onward, and on televisions.
Stadia Pro subscriptions, priced at $10 a month in the US, will be available in 14 countries in North America and Europe. But analysts say Stadia could wind up as another “bet” that Google walks away from if it fails to live up to expectations. “Stadia will live or die by its content,” said Ovum senior analyst George Jijiashvili.
“The announced 12 launch titles are underwhelming.”
Subscribers will be able to buy games that will be hosted at Google data centers, but some free games will be available to subscribers, starting with “Destiny 2: The Collection.”
Stadia on smartphones will work with Wi-Fi connections rather than rely on mobile telecom services. Being able to play without lags or interruptions is paramount to gamers, and flawed internet connections could cause frustration. Internet speed will also determine how rich in-game graphics can be. Some promised features such as integration with YouTube will not be in place at launch. “Stadia appears to be rushed out the door before fully ready and, worryingly, Google is risking falling short on its promises,” Jijiashvili said. “These shortcomings, however, would be easily overlooked if Google can deliver a very reliable and highquality game streaming service.” Google appears committed to doing just that, according to Chris Early, Ubisoft senior vice president of partnerships. The French video game giant has been working with Google and its games are among titles coming to the service.
“From what I have seen, their plans are too deep; they are too good, and they are too invested,” Early said. “They are not calling it quits any time soon.”
He expects a long launch period during which Google will beef up Stadia. “If there is a one-day problem at launch, it isn’t the end of the world; it isn’t even close,” he said, stressing the potential for Stadia to let people play without investing in consoles.