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Google Enters Battle for Cloud Gaming Market

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 17 November 2019.

Google Enters Battle for Cloud Gaming Market

On November 17, 2019, Google launched its Stadia cloud service, marking its entry into the global video game industry.

The service allows users to play console-quality video games on a web browser or smartphone, eliminating the need for dedicated gaming consoles.

Stadia's cloud technology aims to broaden audiences by providing rich new features and ease of access, with no need for consoles.

However, analysts say Stadia's outlook is uncertain, as it faces competition from established players like PlayStation Now in a highly-competitive market.

"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 equity research managing director Michael Pachter.

Google has sold out of "Founder's Edition" kits, priced at $129, which include a Stadia controller and a pendant-shaped Chromecast Ultra wireless connection device.

Stadia games are playable using Google Chrome web browser software on computers, as well as on 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."

"Stadia appears to be rushed out the door before fully ready and, worryingly, Google is risking falling short on its promises," Jijiashvili said.

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