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Google will shut down streaming game service Stadia: sign cloud gaming attempt failed
local time on Thursday, Google admitted that its attempt to reshape the game industry around cloud computing failed, and announced that it will close the Stadia streaming game service early next year.
When it released Stadia in 2019, Google saw it as the vanguard of the "cloud gaming" revolution. But the service failed because most game developers were reluctant to distribute their popular games through the Stadia platform, and users were reluctant to pay a monthly fee for a streaming service with sparse content.
The failure comes at a time when Google is saving company-wide, focusing on priorities, closing fringe projects and laying off workers. Google CEO Sundar Pichai hopes to use the series of contractions to demonstrate the company's determination to keep costs under control in the face of economic turmoil.
Google and its parent company Alphabet have traditionally poured the proceeds from their search engine business into ambitious "moonshot" projects and other projects that have little to do with their main business.
But Google also routinely shuts down ambitious new projects and even the promising companies they've acquired. This has plagued Google from the start, making it difficult to convince gaming companies and users that it will be in the business for the long haul.
"While Stadia's streaming game model has a strong technical foundation, it has fallen short of our expectations in terms of user appeal," Stadia head Phil Harrison wrote in a blog post announcing the shutdown. .
A year after launching Stadia, Google shut down the studio that developed exclusive games for it, leaving the company completely dependent on outside game developers.
Ubisoft became the only company pushing its best-selling game to Stadia, but the company announced this month that it would no longer continue to make the latest version of its hit game Assassin's Creed compatible with Stadia. This is widely seen as a signal that the streaming gaming platform is about to shut down.
Tech analysts appreciate Stadia's use of back-end technologies designed to stream games over the Internet with a level of fidelity and response time previously only possible with consoles. However, the user experience still depends on their home internet speed.
Harrison said that the technology Google developed for streaming games will be used in other Google services, and the company will continue to support other companies exploring the streaming game business.
Google has announced that it will offer refunds for all hardware, games and add-ons sold through the Stadia store. The service will be shut down on January 18 next year.
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