The Inside Story - Why STADIA Failed. ๐๐พ An Ex-Stadia employee speaks
37ex-Stadia Senior manager spills the beans on why Stadia failed. Thanks to documents and witness testimony at the FTC V Microsoft case has provided insight into what went wrong with Stadia.
I break down what he said and what was revealed in court - and reveal the Inside truth of why Stadia failed.
Background: A recent revelation in court documents from the FDC Microsoft case gives insight from Dov Zimring, a senior member of the Stadia management team, about why Google's Stadia failed. Zimring held positions such as Stadia product lead and director of product management at Google during Stadia's lifecycle.
Subscriber Numbers: Google's goal for Stadia by December 2020 was to reach a million subscribers. However, they fell short by 25%, only achieving around 750,000 subscribers. Missing this goal impacted their potential revenue and compounded with increasing costs of game development and the growing acquisitions by competitors like Microsoft.
Game Developer Relationships: Stadia's inability to attract a larger player base made it difficult to secure partnerships with AAA game developers. A significant part of this was a catch-22 situation: players weren't subscribing because of a lack of high-profile games, and developers weren't keen on developing for Stadia due to its limited subscriber base. Large game developers, like Activision, were in talks with Google but ultimately didn't commit because of Stadia's lacklustre subscription numbers.
Competition and Business Dynamics: The acquisition of Activision by Microsoft presented another challenge for platforms like Stadia. The deal bolstered Microsoft's position in the market, making it even harder for newer or smaller platforms to compete and attract subscribers.
Google's Internal Missteps: Despite owning YouTube, Google failed to integrate it effectively with Stadia at launch, missing a significant opportunity. Instead of leveraging the vast YouTube gamer community with its cloud gaming technology, Google kept the two platforms separate for a long time. Stadia's technological advancements were commendable, but its marketing and launch strategies were flawed.
The video suggests that while Stadia's technology was innovative and promising, a combination of internal decisions, market dynamics, and competition led to its downfall.
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