The internet giant hopes to break into the global video game industry — expected to top $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.
But analysts say 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,” said Wedbush Securities equity research managing director Michael Pachter.
Google last month sold out of “Founder’s Edition” kits, which are priced at $129.
Each kit contains a Stadia controller and a pendant-shaped Chromecast Ultra wireless connection device that plugs into television sets.
Stadia games are playable using Google Chrome web browser software on computers.
Stadia also works with Google-made Pixel smartphones from the second-generation onward, and on televisions.
A reporter who got an early chance to try Stadia judged that the graphic quality stood out, and image fluidity was also up to the mark.
One unknown is the extent to which one can play away from one’s own home on a variety of media. Stadia is promising to allow gamers the possibility of starting off a session on one’s television and then switching to a smartphone during, for example, a commute. A roaming option is envisaged, but when it will be available is not yet clear.
In addition, a corded connection is for the time being required to connect the controller to a computer or smartphone, with TV gaming the only wireless option immediately.
While Google’s Chromecast Ultra device must be plugged into a TV for Stadia sessions, a custom Stadia controller connects via Wi-Fi directly to the Google servers where game software is hosted. In essence, screens are just windows for viewing in-game activity being handled at data centers.
In usage terms, Stadia is on par with using a home console in terms of seamless on-screen response to joystick movements — and Stadia is touting much shorter boot-up times. Whereas it can take some hours to install a purchased game on a console, Stadia gets to the starting line in seconds.
Even a small-scale test run using few servers could not erase all question marks, a key one being the quality and stability of the connection once there is the expected onrush of competitors firing up.
Stadia Pro subscriptions, priced at $10 a month in the U.S., 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.”
Subscribers will be able to buy games that will be hosted at Google data centers, but some free games will be available to subscribers, starting with Destiny 2: The Collection.
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 will 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.”
Google appears committed to doing just that, according to Ubisoft’s senior vice president of partnerships, Chris Early.
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.
But Pachter questioned whether subscriptions are the right approach: “The right model is pay as you go or pay for the game and play unlimited without a subscription. Amazon will try one of those and will win the streaming wars.”
Amazon has game studios but no online game service.
U.S. tech veteran Microsoft 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 Vice President Kareem Choudhry said in an online post.
Sony Interactive Entertainment last month slashed the price of its PlayStation Now cloud video game service by about half in the U.S. to $10 monthly.
Japan-based Sony 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.
“While we expect dedicated consoles to eventually lose relevance in the face of cloud gaming services, there’s no guarantee that it will be Google’s service — rather than Sony and Microsoft’s — that catalyzes this trend,” said Ovum senior analyst Matthew Bailey.
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