Ever-expanding Google is to become a gaming company tomorrow with the launch of its Stadia cloud service that lets people play console-quality video games on a Web browser or smartphone.
The Internet giant hopes to break into the global video game industry expected to top US$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.
However, analysts said 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,” Wedbush Securities Inc equity research managing director Michael Pachter said.
Google last month sold out of “Founder’s Edition” kits, which are priced at US$129.
Each kit contains a Stadia controller and a pendant-shaped Chromecast Ultra wireless connection device that plugs into TV 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 TVs.
Stadia Pro subscriptions, priced at US$10 a month in the US, are to be available in 14 countries in North America and Europe.
However, analysts said 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,” Ovum Ltd senior analyst George Jijiashvili said. “The announced 12 launch titles are underwhelming.”
Subscribers would be able to buy games that are to be hosted at Google data centers, but some free games would be available to subscribers, starting with Destiny 2: The Collection.
Stadia on smartphones would 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, would 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 high-quality game streaming service,” he added.
Google appears committed to doing just that, Ubisoft Entertainment SA senior vice president of partnerships Chris Early said.
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.
However, Pachter questioned whether subscriptions were the right approach.
“The right model is pay as you go or pay for the game and play unlimited without a subscription,” Pachter said. “Amazon will try one of those and will win the streaming wars.”
Amazon.com Inc has game studios, but no online game service.
US technology veteran Microsoft Corp has been testing a Project xCloud online game platform.
“Next year, we’ll bring Project xCloud to Windows PCs, and are collaborating with a broad set of partners to make game streaming available on other devices as well,” Microsoft corporate vice president Kareem Choudhry said in an online post.
Sony Interactive Entertainment Inc last month slashed the price of its PlayStation Now cloud video game service by about half in the US to US$10 monthly.
Japan-based Sony Corp also boosted the library of games that PlayStation Now users can access through its consoles or on personal computers powered by Windows software.
Sony and Microsoft are also poised to release new-generation video game consoles next year.
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