Google’s announcement that it would be shutting down itsStadiagame development studios shocked the industry. It was just two years ago thatStadiaannounced the actualization of these studios, meaning they haven’t had much time to put together their first games. The decision from Google has left many questioning why, though the Stadia team has offered little in reply. One apparent reason, according to reporting from a Stadia internal Q&A, was Bethesda.
This past Thursday,Google Stadia GM Phil Harrisondid a Q&A with Stadia staff regarding the decision to shut down Stadia’s game development teams. Kotaku has reported on some of Harrison’s responses. While Harrison was said to be very coy regarding the reasons for the decision, one specific thing he mentioned was Microsoft’s ongoing acquisition of ZeniMax Media, which includes Bethesda, id Software, MachineGames, and other subsidiaries.

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How Microsoft’s Bethesda acquisition factored intoStadia’s game developmentefforts wasn’t explained, it seems. All Harrison is reported to have said is that Microsoft’s acquisition of Bethesda and its ongoing “buying spree” of other studios was a factor in Stadia’s decision. Kotaku doesn’t provide any further context for Harrison’s response. It doesn’t even provide a direct quote. Yet if Harrison was willing to say it, then it must have been important.
As for how Microsoft’s acquisitions played into this competition between the companies, one can only guess. Perhaps Google was also pursuing theZeniMax Media/Bethesda acquisitionand missing out severely impacted its plans for first-party game development. Perhaps the Bethesda acquisition made Google believe it couldn’t compete based on exclusive games. Or perhaps Google believed getting Bethesda itself was the only way to bring its in-house game development to a level of success worth supporting.
Whatever the reason, Google has already pulled the plug on its Stadia game development teams. There’s no reversing course now. And what that decision means for the future of Google Stadia and cloud gaming in general remains to be seen. But at the very least, there are nowhundreds of former Stadia developerswith uncertain futures who believed Google andStadiawould be there for them. The entire situation is unfortunate.
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