Google enters battle for cloud gaming market

Ever-expanding Google becomes a gaming company Tuesday with the launch of its Stadia cloud service letting people play console-quality video games on a web browser or smartphone. 

The internet giant aims 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 and ease of access with no more need for consoles. 

But analysts say Stadia’s view is uncertain as it faces rivals such as PlayStation Now in an emerging and highly-competitive market. 

Stadia plays into a mode 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 solely 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 holds 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.

It also works with 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.

– All in the game –

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.” 

Stadia on smartphones will work with WiFi connections rather than rely on mobile telecom services.

Being able to play without interruptions is central to gamers, and flawed internet connections could cause frustration. Internet speed will also determine how rich in-game graphics can be. 

Some vowed 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 omitted if Google can deliver a very reliable and high-quality game streaming service.” 

Google appears committed to doing just that, as to Ubisoft 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.

“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.

But Pachter questioned whether subscriptions were the right approach.

“The right model is paying as you go or pay for the game and play unlimitedly without a subscription,” Pachter said. 

“Amazon will try one of those and will win the streaming wars.”

Amazon has game studios but no online game service.

– Battle brewing –

US technology veteran Microsoft has been testing a Project xCloud online game platform.

“Next year, we’ll bring Project xCloud to Windows PCs, and are cooperating 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 last month dropped the price of its PlayStation Now cloud video game service by about half in the US to $10 monthly. 

Japan-based Sony also improved 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 balanced to release new-generation video game consoles next year.

“While we expect committed 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.

Source: AFP