Phil Harrison pitched Stadia as 'the future of gaming.' Now, he's trying to save it.
Google wasn't the first company to move into cloud gaming, but it pitched Stadia as a revolutionary platform, capable of pumping AAA titles to users' living rooms and portable devices without expensive hardware. The experience would be seamless: Someone could watch a game being played on YouTube and jump into it with the click of a button, as long as they had a good internet connection.
Stadia's core technology has been widely praised — even as the platform it supports gets tepid reviews — and Google is trying to extract as much value from it as it can. Internally, some employees have floated the idea of using Google's technology for nongaming purposes, such as 3D modeling and other high-intensity tasks that could be performed over the cloud.
But the pivot in strategy also led to a stream of employees exiting Stadia last year, including executives. Jack Buser, Stadia's former director for games,
moved to Google's cloud unit in September. Teddy Keefe, Stadia's partnerships manager for the Europe, the Middle East, and Africa region, left Google last month.
In summer, after Google closed its internal game studios, the Stadia division was reorganized under the subscriptions and services section of Google's devices group. Harrison, who previously reported directly to Rick Osterloh, the devices and services chief, now reports to Jason Rosenthal, Google's vice president of subscription services, two people familiar said.
Harrison has also moved back to his home of London. He had been in California since 2018, working from Google's Mountain View headquarters.
Google's 2018 hiring of Harrison, a PlayStation and Xbox veteran, signaled the search giant was preparing to make a big splash in video games. He joined Google CEO Sundar Pichai
onstage at the Game Developers Conference in San Francisco the following year to unveil Stadia, promising users access to to a library of exclusives and established franchises that would all be beamed over the cloud.
But when Stadia launched just a few months later, it was missing several key features.
Bloomberg reported that there were tensions between employees who wanted to present Stadia as a beta test and leaders who wanted to follow a more traditional console launch.
Google also struggled to hold on to users. Harrison and other executives set a goal to reach 1 million monthly active users by the end of 2020, which they missed by about 25%, according to a person familiar with the conversations. "Retention was a real problem," this person said.
Meanwhile, Google was operating in an increasingly challenging industry. When Microsoft announced in 2020 that it would acquire the "Elder Scrolls" studio Bethesda, it "scared the crap out of Google executives," a former employee close to those conversations said. After Stadia shuttered its in-house games division, insiders said any appetite among Google executives to own any studios completely went away. It also had trouble luring studios to develop for the platform; some gaming execs
previously told Insider that Google would offer rates "so low that it wasn't even part of the conversation."
Consolidation in the industry has continued. This month,
Microsoft announced it would also buy Activision, the creator of the "Call of Duty" franchise, for $68.7 billion. The mammoth merger — the biggest ever in video games — takes yet another major publisher off the field. PlayStation's CEO
said after its purchase of Bungie that the industry would likely make more high-profile acquisitions.
Google continues to bolster the Stadia consumer platform with new games but few that are on the AAA level gamers were promised, and some customers
have grown frustrated by what they see as a lack of communication from Google.
The company spent
tens of millions of dollars early on to secure blockbuster titles for Stadia, including Rockstar Games' "Red Dead Redemption 2." Last year, Rockstar released a remastered version of three of its older "Grand Theft Auto" titles across multiple platforms. There has been no mention of the game coming to Stadia.
Increased consolidation in the market risks squeezing Stadia's consumer platform and could make it harder for the company to spark deals with large game developers and publishers for games on Stadia and white-label opportunities.
"The Stadia cloud tech is great. The question is how to make that tech work for partner publishers that may not want to develop their own tech but also wish to have its own branded service," Mat Piscatella, an NPD analyst, said. "But the big questions are how many of those publishers will there be if and when cloud gets mass-market traction and how could the economics work?"
Current and former employees said the priority was now on proof-of-concept work for Google Stream and securing white-label deals. One estimated about 20% of the focus was on the consumer platform.
"There are plenty of people internally who would love to keep it going, so they are working really hard to make sure it doesn't die," they said. "But they're not the ones writing the checks."
Are you a current or former Google employee? Got a tip? Contact reporter Hugh Langley at
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Insiders say Google has shifted its gaming ambitions to focus on deals with names such as Peloton in an effort to save Stadia's underlying technology.
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