Google launches game-streaming business in a bid to kill the console

The tech giant has unveiled an entirely new service as it takes on the traditional video game world — and it wants to kill off the console.

Tech giant Google has unveiled a video-game streaming platform called Stadia, positioning itself to take on the traditional video-game business.

The platform will store a game-playing session in the cloud and lets players jump across devices operating on Google’s Chrome browser and Chrome OS, such as Pixel phones and Chromebooks.

Google made the announcement at the Game Developers Conference in San Francisco overnight. Some industry watchers were expecting a streaming console, but Google’s platform centres squarely on the company’s cloud infrastructure.

Essentially, Google wants to kill the console.

“The new generation of gaming is not a box,” said Google Vice President Phil Harrison. “The data centre is your platform.”

Google vice president and general manager Phil Harrison speaks during the GDC Game Developers Conference San Francisco overnight. Picture: Justin Sullivan

Much like movies and music, the traditional video-game industry has been shifting from physical hardware and games to digital downloads and streaming. Video-game streaming typically requires a strong connection and more computing power than simply streaming video, since there is real-time interaction between player and game. Google says it is leveraging its data centres to power the system.

Google set out to disrupt the world of video games with a Stadia platform aimed at putting its massive data centre power in game maker's hands and letting people play blockbuster titles from any device they wish. Picture: Josh Edelson

Google said playing video games will be as simple as pressing a “Play Now” button, with nothing to download or install.

An optional dedicated Stadia controller will be available. The Wi-Fi-enabled controller has a button that lets players launch a microphone and use Google Assistant to ask questions about the games being played. Another button lets users share gameplay directly to Google’s video streaming service, YouTube.

The future of gaming is not a box. It's a place.

This is Stadia. One place for all the ways we play → https://t.co/v2jJTUWkYz pic.twitter.com/LlIHbjigDR

— Stadia (@GoogleStadia) March 19, 2019

Research analyst Scott Kessler said Google’s approach that ties YouTube sharing and video-game playing is unique.

“It is not necessarily at this point the easiest thing for people to livestream their games and now you can do it with the push of a button,” he said. “What they’ve done with Stadia is to connect and unify both the gaming platform and the streaming platform which obviously is new.”

However critics have suggested the company could have serious trouble scaling the service to a truly large number of users.

To achieve the optimal performance, it will also require a high quality and reliable internet connection that might not be readily available to some Australian households at the moment.

Google has announced Stadia, a new streaming service that allows players to play games online without consoles or computers. You can get a Wi-Fi-enabled controller that has a button which lets players launch a microphone and use Google Assistant to ask questions. Picture: Justin Sullivan

The audience reacts during a keynote session at the annual Game Developers Conference at Moscone Center in San Francisco, California on March 19, 2019. Picture: Josh Edelson

No launch date or pricing was announced but the company said Stadia will be available in 2019 in the US, Canada, the UK and parts of Europe. No word yet when Australian gamers can expect access.

The company showed demos of Assassin’s Creed Odyssey and Doom Eternal. More information about games is due in the next few months.

The US video game industry raked in revenue of US$43.4 billion in 2018, up 18 per cent from 2017, according to research firm NPD Group.

The Google service could prove to be a big positive for game publishers because the platform could bring in players not willing to spend the money upfront for a gaming PC or a console.

“What they’re presenting is a feasible way to play video games in the cloud, and utilizing the cloud so you can play anytime, anyplace and anywhere,” said analyst Brandon Ross, Managing Director at BTIG. “There’s no friction, including the friction of upfront hardware costs.”

He added that Google’s platform could set up a distribution battle between Microsoft, which owns the Xbox, Sony, which owns the PlayStation, Google and perhaps Amazon, which reportedly is working on its own video-game service, as they race to lock down distribution of the most in-demand games.

To that end, Google launched Stadia Games and Entertainment which will develop Stadia-exclusive games.

“The differentiator for any of the distributors on a console or in the cloud is going to be available content,” he said.

Originally published as Google launches game-streaming business in a bid to kill the console