3 major reasons why Google Stadia failed

Last year, Google Stadia was not going to work in my opinion. Today my prediction was realized. Google Stadia will close down. The service will cease to exist on January 2023. Stadia users will be disappointed, but it is an interesting case study for all of us. It is not enough to have a product that works. You must also know your audience.

Although we will never know the exact reason Google Stadia failed we can analyze the mistakes it made. Stadia shows how it can be ahead of the technological curve and get everything wrong. It launched in an insufficient state, failed to keep up with competitors, and even lost the one feature that would have made it stand out.

It’s not surprising that Stadia went under the hammer, considering how many other services and products have been unceremoniously killed by Google. It is remarkable that cloud gaming has survived, even though Stadia is at the brink of disappearing forever.

Three big problems with Stadia

When the product was launched, I wrote a Google Stadia Review. I then played the product for a few more months and kept up to date with its developments over the past three years. I discovered three main issues that prevented Stadia from reaching its full potential: a poor launch, lack of unique selling points, and fundamental misunderstanding of its audience.

Stadia is an excellent example of how you can stay ahead of the technological curve and still get most things wrong.

Stadia didn’t make the best initial impression when it launched. The service received a mixed review from us. The streaming technology was good, but Stadia wasn’t firing on all cylinders. Launch library contained only 22 games. The «free tier» promised by the launch library was not available, so players had to pay more than $100 upfront. The smartphone and PC apps weren’t working properly.

The most frustrating thing, at least to me, was that the wireless controller didn’t work wirelessly with all Stadia platforms. You needed a USB-C cable to connect the controller to your smartphone or PC in order for you can play. Google did not make any promises regarding when wireless functionality would be available, and it took nearly six months to implement the feature.

Although this may seem like a minor issue, it demonstrates how inept the Stadia project was. Stadia had a lot of functionality missing when it launched. Google responded by saying «be patient» instead of «this is unacceptable.» We would still be reading thoughts about how disrespectful these companies have for their customers if the PS5 or Xbox Series X had launched at a similar stage.

Then there was the fact that Stadia failed to offer anything special — and in fact deliberately limited its ability to do so. The platform had only one game when it launched. It was the completely forgettable Gylt. It has added a few more titles over time. The fact that I hadn’t heard of any of these before writing this article speaks volumes.

Google Stadia closed its first-party studios in February 2021. This effectively ended the exclusive Stadia games. There are nearly 300 Stadia games, but most of them can be found on other platforms. The majority of the games are also available on other platforms.

Stadia’s failure to resonate with a larger audience was due to the «target audience» problem. This argument was extended in my «Stadia wasn’t going to work» opinion piece. The short version is that Stadia’s limited game library was dominated by «core» games like Assassin’s Creed and Baldur’s Gate, Final Fantasy and Resident Evil.

Stadia was aiming at gamers, people who enjoy playing video games and are passionate about learning new titles. Gamers are likely to already have powerful computers or consoles. Stadia’s library was most popular with those who had the least need of it.

My observation was that Stadia’s most passionate fans were in a digital no-man’s land. They wanted to play core games but could not or would not pay for a high-end system. These people were well served by Stadia. However, it was not their only or best option.

How Nvidia and Xbox got ahead

Stadia was the first to offer the «buy a video game and then play it on any screen inside your home» model. This was a groundbreaking idea that has been adopted by the industry in large numbers over the past two decades. Stadia was unique in that you could purchase a game from your PC and start playing it immediately. Then, before going to bed, you can pick it up on your phone.

Microsoft integrated game-streaming functionality in Xbox Game Pass less than a year after Stadia was launched

But the games industry is quick for imitation, and less than one year after Stadia was launched, Microsoft added game-streaming functionality to Xbox Game Pass. Xbox users can now stream games to their Android phones or tablets instead of downloading them, and with full cross-save functionality.

Microsoft has added streaming support to iOS devices, Web browsers, and Xbox consoles over time. Although Xbox doesn’t yet offer streaming support for every game that you own, it is actively working to make this possible. Nvidia GeForce Now was also launched in the same timeframe, giving gamers the option to bring their PC libraries with them.

Microsoft and Nvidia got it right, and Google failed to do so. Cloud gaming is not an all-inclusive solution. Gamers may want to download or stream titles. Stadia felt a lot worse than playing on a PC or console, even when it was running at its peak performance. Game Pass and GeForce Now offer gamers the opportunity to use the powerful hardware they already have, or to stream on a lighter system. This basically beat Stadia at its own game.

Even though it’s not as easy to play games on multiple screens with Nvidia GeForce Now or Xbox Game Pass, it is still possible. These services aren’t necessarily better, but they have made substantial improvements over the years. Stadia’s core concept didn’t change in three years, even though it was obvious that other companies had better solutions.

Future hybrid

Before Stadia was released, I expressed concerns about gamers using it. Now, the answer seems obvious.

Stadia was in a way ahead of its time. However, I doubt we will be pinning for it as much as we did with the PlayStation Vita. Google must have known about Stadia’s weaknesses, but didn’t take meaningful steps to correct them. Stadia’s niche will be filled by other products, which may fill it even better.

Stadia is, in fact, a cautionary tale about how impressive technology can’t solve every problem. Cloud gaming will revolutionize the industry in the coming years. If it happens, I wonder if we will see Stadia as a necessary step or an early mistake.