The Death of Stadia
Yesterday The Verge broke the story that Google is shuttering Stadia and will be refunding all purchases. I guess it is good on Google for refunding those purchases, but it does make me question how much they actually made on the platform as a whole. I know I never spent a dime on it, but still had pro access to the service for a few months. You could get the starter bundle of hardware shipped to you if you had a paid subscription to YouTube. Last year if you bought any single game on the service, they would also ship you the hardware for free. Both of these promotions tell me that no one actually wanted to pay money for the service or the hardware and as a result, they had many units just warehoused and waiting to be shipped. Admittedly I have both a Steam Link and Steam Controller when they did similarly nonsense liquidation practices to get rid of stock.
I would love to say we all saw this coming. I’ve been pretty vocal over the years about just not really understanding the value proposition of the network. However, it seems that specifically, developers who had partnered with Stadia did not see this one coming. Yesterday in my travels I came across the above twitter thread where a developer was set to launch their game in just a few days on the platform. It seems as though this decision was not widely communicated until the article and official blog post were released. I feel bad for the folks who worked on the Stadia project because in spite of all of my complaints the technology was actually really good. The big problem however is that a reasonable product offering never really coalesced around that excellent technology.
I think Google made the false assumption that if they created the technology, the games side of the equation would just sort itself out. I have had the benefit of being on this blog platform for almost fifteen years at this point, and as a result, I have all of the images that I originally used when I talked about the not-great lineup of games at launch. That is it folks, an image I clipped from a website showing the games that would be available on Stadia day one. It looks less like the launch of a new platform and more like a Humble Bundle deal from five years ago. Worse yet, and this is something I am going to dive into a bit further is that most “core” gamers that they were marketing the system towards already had access to these titles.
I think one of the biggest problems with Stadia was its marketing and who it thought was the core audience. A lot of effort was spent marketing stadia towards core gamer audiences including the big reveal taking place at E3… a core gaming event. Even this commercial from the launch of the platform seems to indicate that Stadia is a replacement for PC and Console gaming, and that core gamers should want their console to have “no smell”? However, the ideal audience for Stadia was the person who USED to play games regularly but life has now gotten in the way. Someone with maybe an Xbox 360 from the glory days of playing COD with friends, and just fell out of the upgrade cycle and now maybe wants to dip in and play with their buddies again. The idea of just buying a game without a hardware lock-in is likely incredibly appealing to that audience.
The problem is that dream never really fleshed itself out. Even Destiny 2, one of the launch titles that was given away to every single member… was isolated so that you could only play with other Stadia users. It was not until two years later when Bungie focused on cross-play functionality that Stadia finally became open to actually playing with already entrenched Destiny 2 players. This same story played out on a few other games so the idea of using Stadia as a way to jump-start into group play never really worked either. Again the tech was great and could have been this awesome in-between option for folks who did not have the time or desire to maintain hardware, but that reality never fully materialized.
There was a very snarky tweet floating around yesterday essentially presenting the facts that Stadia has had what could have been a massive headwind over the last few years. It is true, the pandemic and boom in gaming caused so many other platforms to thrive. The global chip shortage and insane aftermarket prices drove people to look for other alternatives. Even the very rough launch of Cyberpunk 2077 and the high system demands, made Stadia one of the best platforms to play that game on. None of this was really enough to every truly jump-start this platform. What the snarky tweet does not go into however is just how stiff the competition for the cloud gaming space has been.
In very short succession Stadia had GeForce Now, Xbox Cloud Gaming (XCloud), Amazon Luna, and the aging PlayStation Now infrastructure getting a fresh coat of paint. In all of those cases, they were offering a similar streaming platform with its own baked-in library of games, and other than Luna… some significant benefits to choosing those platforms. Let’s talk about each of them a bit.