How Stadia’s Demise Could Impact the Future of Cloud Gaming
Cloud gaming has become increasingly popular over the past few years. The technology that enables one to play high-end games from anywhere and on any device was once considered just a novelty act. Now, big gaming companies such as Sony, Nintendo, and Microsoft have invested heavily in cloud gaming.
Seeing an opportunity, other notable competitors have joined the fray like Google with its Stadia platform for example. Unfortunately, Stadia will be closing its doors weeks from now, leaving many gamers wondering what this could mean for the future of cloud gaming.
For many, Stadia’s shortlived reign, one that spanned only three years with more lows than highs, wasn’t surprising in the slightest. In fact, given the many mistakes its parent company Google has made with cloud ventures in the past, its most recent disaster seemed inevitable, to say the least.
To keep it short, Stadia was kneecapped by Google’s own callousness in tackling the cloud gaming market, ranging from poor functionality to missing features. A full rundown of this situation can be found here.
The truth definitely makes Stadia’s downfall seem far more pathetic than many had initially realized. But the deceased cloud platform should be mourned given the potential that lay underneath. That and more importantly, the consequences its demise will bring to the industry.
Many might not agree, but Stadia’s existence was essential in more ways than one and its shuttering will have a devastating ripple effect.
Stadia was a missed opportunity
On the surface, Stadia seemed to have a lot going for it. Many doubted Google would get cloud gaming right the first time, but what was being offered in the initial reveal made the service seem like it would be a winner.
The backend was running on hardware that was significantly more powerful than the current console generation. In terms of graphical performance, the specs delivered a whopping output of 10 teraflops — more than twice that of the Xbox One X and almost quadruple that of the PS4 Pro at the time.
It also had a patented feature that only furthered the idea that the service would be a game changer in cloud gaming. “State Share,” as it was called, allowed anyone to seamlessly transition from watching a live game played on YouTube to a playable demo via the service.
Most of all, Stadia’s catalog seemed stacked on the surface with popular titles including the likes of Destiny 2, Doom Eternal, FIFA 22, Assassin’s Creed: Valhalla, and more. It was also meant to include its very own exclusives. Hence, all of the boxes were ticked for a service like this to succeed in this day and age.
Stadia’s only problem, however, was that it didn’t provide enough of what it was offering. If the team behind the service was provided everything needed to fine-tune it before launch, Stadia could have secured its place as the industry leader it was destined to be.
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Instead, the cloud gaming market is now minus one major competitor that could have helped expand its niche. After all, competition is always necessary for industries to evolve and grow. But now that niche has contracted, its former rivals could become arrogant — even those that have similar flaws.
Monkey see monkey do
As pointed out before, Stadia had a lot going for it but Google had inadvertently clipped its wings. In doing so, the tech giant has set a very dangerous precedent for similar companies. As one of several industry leaders, Google has massive influence in the tech business thanks to certain innovations that many other companies have come to know and rely on today.
However, when it was big enough to venture outside the space of its titular browser, Google came down with an extreme case of Cold Feet. Instead of continuing its journey aggressively, the now-defanged tech giant approaches every venture by dipping its toes rather than fully plunging into them.
Eventually, these ventures will lose steam due to the lack of support and the end result is either that they are put on life support or put to rest — the latter of which many Google services have suffered. For a full list of these, one has to look no further than the infamous Google Graveyard, a real website that can be found here.
This type of behavior from a well-renowned tech icon could be adopted by startups trying to break into the same industries as it has. Though many will disagree with that notion as Stadia’s downfall can easily be used to teach future cloud gaming companies what to avoid with their startups, not every company will take the time to put together a Don’t Do list. In fact, there have been many startups out there that have blindly followed the cookie-cutter approach.
What’s worse is that it isn’t much wrong with that approach since following trends is a natural way for companies to thrive and grow — even those that are outwardly bad for them. Hence, Google has etched a path out for future cloud gaming companies riddled with unnecessary obstacles for them to struggle and even fail to overcome if ever trekked.
Less confidence in cloud gaming
Whenever a leading company drops the ball with a product or service, the market reacts as one would expect. It’s a domino effect where everything starts to collapse one after the other; sales numbers fall; stocks are shorted; contracts are shredded; layoffs ensue; and lawsuits are threatened.
Stadia’s capitulation undoubtedly caused such a panic. Though its parent company Google, valued at over $1 trillion, remained in the clear, the impact it had on the market was still somewhat devastating. Again, because it's Google, many didn’t expect much from Stadia, to begin with. But the former currently sits within the Top 5 leading tech companies of the world for a reason: It managed to innovate its way to that position.
If a company with that kind of profitability can screw up a venture that has become somewhat standardized, then what does that say for any startup trying to become the next big thing in the market? It isn’t as simple as it might sound but it shouldn’t be too difficult for this behemoth to pull off either. However, there is still hope for this shaky industry and it lies within the big 3.
Sony has its PlayStation Now feature that grants PS+ subscribers full access to generations of PS exclusives on demand via cloud across many devices including its consoles. Microsoft has done pretty much the same with its xCloud feature for Xbox Game Pass. Even Nintendo, a company that has remained within its own bubble, is currently providing “cloud versions” of select third-party titles for Nintendo accounts.
But these three companies shouldn’t be allowed to have all of the cloud gaming market to themselves considering that their services have caveats to them. PS Now has suffered from constant functionality issues. The xCloud is currently in beta. And Nintendo Switch’s cloud game library is minuscule at best.
These and other competitors together have brought overwhelming anxiety across the market. Now that Stadia has imploded, the market has become extremely jumpy if not in a full blown panic.
Closing
Regardless of how people feel about the demise of Stadia, things look bleak for the future of cloud gaming. Many of the industry’s advocates, whether they be entrepreneurs or tycoons, are undoubtedly worried about any potential failure more than ever before especially given it came from a leading tech company.
Though other cloud gaming companies may seem better off without their competition, their concepts and offerings could grow stagnant due to lack thereof. Stadia’s demise didn’t lead to a vacuum forming; it was a sinkhole instead.
