05 February 2021
Google Stadia is a game streaming platform that supports third-party games but in an attempt to differentiate itself from the competition, Google also revealed plans to develop and release first-party video games. The studio was named Stadia Games & Entertainment (SG&E) but as the announcement has been made, the same studio is getting shut down.
Phil Harrison, VP and General Manager at Google Stadia, made the announcement through a blog post. He revealed the decision to shut down SG&E has been taken because game development requires a significant amount of time as well as a financial investment. They will not be working on any new gaming titles except for the near-term planned ones.
This essentially means that Google will be shutting down both of its studio offices based in Los Angeles, United States, and Montreal, Canada. The teams from both places will be moved to new roles but no further details have been revealed. One important thing to note is that Jade Raymond who was leading the Stadia development team has also left the company.
Here is the official statement by Google:
"Creating best-in-class games from the ground up takes many years and significant investment, and the cost is going up exponentially. Given our focus on building on the proven technology of Stadia as well as deepening our business partnerships, we’ve decided that we will not be investing further in bringing exclusive content from our internal development team SG&E, beyond any near-term planned games."
In the context of Google Stadia users, the announcement does not change anything. They will continue to stream and enjoy their games as well as Stadia Pro membership as usual. The only difference is that there will not be any new first-party games coming to the platform.