Google Stadia to Face Competition from Microsoft, Sony and Amazon

Published on: 21 Nov, 2019

Alphabet Inc. (NASDAQ: GOOG) game streaming platform, Google Stadia, was recently released. However, the reviews seem to be mixed.

Jess Grey in his review for Wired explained, "Even under ideal conditions (fiber connection, directly plugged into the router, 4K HDR OLED TV), there is a noticeable difference between playing a game on Stadia and running the game on local hardware, like a PC or PS4… There's a certain clarity, depth, and sharpness you get when a game is rendered in real time, and that's absent with a stream, no matter how high quality it is... With Stadia, games sometimes look like you're watching an ultra-high-resolution gameplay video rather than actually playing the game yourself. They look drab."

As Google Stadia continues to optimize technical performance, the platform will also have to compete against major players such as Microsoft Corporation (NASDAQ: MSFT), Sony Corporation (NYSE: SNE) and Amazon.com, Inc. (NASDAQ: AMZN), who are stepping up as well.  

Earlier in October Sony announced that its PlayStation Now streaming service offering access to more than 800 games for $9.99 per month, including God of War. And Microsoft has already started public beta testing of its Project xCloud gaming service. At the moment the service offers 50 games, including big titles like Gears 5 and the Halo games. In addition, Microsoft offers a subscription service called Xbox Game Pass with access to more than 100 titles, also starting at $9.99 per month.

CNET reports that Amazon is planning to announce its own cloud gaming service next year. One job posting found by CNET reportedly reveals that Amazon strategies to integrate the service with Twitch, which of course is comparable to Google’s ultimate plans for integrating Stadia and YouTube.

Despite the technical issues that Google Stadia currently has to deal with, the future seems to be bending towards game streaming. Alex Hern in his review for The Guardian described the service as revolutionary, "Its core technology delivers on a promise decades in the making: console-quality gaming, without the console. But revolutions have unpredictable outcomes, leave a trail of destruction in their wake, and have a tendency to destroy those who start them. Will Google be able to see this through?"

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Danny Abramov

Email: danny@financialinsiders.com

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