Google Needs To Buy More Games Studios
In February Google announced that it would be shutting down its internal studios that would have created exclusive games for Google Stadia. This news was a hard hit for the Stadia community and in terms of getting new people to join Stadia, hearing this news can be off-putting, as it could show that Google has no faith in Stadia, which is why they shut down their internal studios. However, what if Google is playing it smart.
Why shutting down Stadia’s internal Studios is a smart move by Google
So to begin with I want to get the point out the way that yes, exclusive games do sell consoles, so it would have been nice to see Google release a game exclusive for Google Stadia and really show off what the Stadia platform is capable of. However, as I said Google is playing it smart.
So how is Google playing it smart? Well firstly, when it comes to creating games especially AAA games these can cost around 100 million or more. Let’s take a look at some big games and how much they cost, GTA V had a budget of $265 million, Dead Space had a budget of $120 million. You can view even more games and their budgets here. So as we can see games cost a lot of money to develop and take a lot of time to develop from 5 years or more. This is crazy to imagine and especially how you can spend all this money and time and create something that nobody likes, which brings me to my next point.
Imagine if Google spent over 100 million and however many years to create a game and then no one likes it and it doesn’t sell well. We have seen this before with games like Marvel’s Avengers which cost over 100 million and did not meet a return on invest, and this is a massive IP with it being Avengers, you would think it would sell. There are plenty of other games that have seen this happen, such as Anthem. So as we can see making games is a risky business. One that Google clearly didn’t want to take.
Especially how the gaming industry is changing in terms of Free to Play games being the more dominate games in the industry, with Fortnite and Apex Legends to name a few raking in tones of money. So Google was right to jump ship in terms of working on creating their own games.
Now as I said it would have been nice to see Google release a game exclusive to Stadia to show off what the platform can do.
So why does Google need to buy more Game Studios?
Currently, as it stands Google owns Typhoon Studios.
Now I have no idea what is going on behind the scenes at Google, they could even already be in talks with game studios as we speak. But if they are not, then Google needs to get on this ASAP.
Buying an already established game studio is a saver bet for Google, as take for example if they were to buy Ubisoft, then they could have Ubisoft work on creating games exclusively for Stadia, Games with already established IPs and a loyal fan base behind them, meaning that these games are going to sell. These studios have already put in the hard work with getting their foot into the gaming industry and building up a loyal fan base for there games.
Take Microsoft who recently brought Bethesda for a whopping 7.5 billion, however, they now own the rights to IPs of games that have a huge fan base like Elder Scrolls or Fallout, so Microsoft will eventually see a return on investment. Not only that but Microsoft recently announced that some games will be exclusive to Xbox and PC. Now yes this was met with backlash, but who cares as Microsoft don’t, as they know, if they make Elder Scrolls exclusive to Xbox and you want to play that game, then you will go out and buy an Xbox, its that simple. This brings me to my next point.
If Google was to buy more game studios and did make them exclusive to Stadia, yes it would be met with backlash, but no one is losing out, as at the end of the day Stadia is a completely free platform to use, meaning if you wanted to play a game that was exclusive to Stadia, you wouldn’t have to spend a penny buying anything other than the game. Crazy right.
My next point is, with Stadia now closing there in house studios, it means they have nothing to fall back on. Now what I mean by this is, I have a feeling that Microsoft isn’t done just yet with buying game Studios and there are talks that they are working on buying Discord, which clearly shows they are not done yet. Now with them also saying they will make certain Bethesda games exclusive to Xbox and Pc, this means that if they do end up buying more game studios and making those games exclusive. Then Stadia will struggle in terms of games coming to the platform and who knows Sony might start soon buying game studios as well.
My last point is that if Google buys a massive game studio like Ubisoft, it clearly shows that Google is serious about Stadia and that they are in this for the long run. This is something that Stadia needs to show if it ever wants to grow in the gaming industry, as people have a fear that Google will shut Stadia down within a year or two.
What do you think of the points I mentioned? Let us know in the comments below. If you enjoyed this article, why not share it on social media.