Goodbye consoles? Here’s how Google’s new Stadia platform could disrupt gaming space

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 CEO Sundar Pichai speaks during the GDC Game Developers Conference on March 19. (AFP)

Google on Tuesday 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 didn't say how much its new service will cost, whether it will offer subscriptions or other options, or what games will be available at launch —all key elements to the success of a new video-game platform. It said only that Stadia will be available in late 2019.

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

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

Google Vice President Majd Bakar speaks on-stage during the annual Game Developers Conference at Moscone Center in San Francisco. (AFP)

Google Vice President Majd Bakar speaks on-stage during the annual Game Developers Conference at Moscone Center in San Francisco. (AFP)

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 centers to power the system.

Alphabet Inc.'s 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 WiFi-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.

Harrison said he expects all gaming will eventually take place outside consoles, in cloud-powered streaming platforms similar to what Google announced. But not right away.

Google vice president and general manager Phil Harrison speaks during a Google keynote address announcing a new video gaming streaming service named Stadia. (REUTERS)

Google vice president and general manager Phil Harrison speaks during a Google keynote address announcing a new video gaming streaming service named Stadia. (REUTERS)

CFRA 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."

The company said Stadia will be available in late 2019 in the US, Canada, the UK and parts of Europe. Google showed demos of "Assassin's Creed Odyssey" and "Doom Eternal." More information about games and pricing is due this summer.

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

BTIG Managing Director Brandon Ross said Stadia will be a positive for game publishers "assuming that it works and works at scale, which is a big assumption."

The Google game controller is displayed after an event at the Game Developers Conference in San Francisco. (Bloomberg)

The Google game controller is displayed after an event at the Game Developers Conference in San Francisco. (Bloomberg)

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

Harrison said Google will rely on outside publishers and game developers to provide many of the games available on the platform. But having its own inside studio will also allow the company to fully test and make use of new features.

"We can be the advance party, so to speak, and we can be testing out the latest technology," he said. "Once we've proven it we can help bring that up to speed on the platform even more quickly with our third-party partners."

Harrison acknowledged Google faces stiff competition from longtime rivals Microsoft, Sony and others. Google has been working on Stadia for more than four years, he said, and has been working with game developers through Android and Play Store for longer.

The others have more than a decade of experience. But Google believes it brings something new.

"We are not a historical console or PC platform," he said. "We are built specifically for this new generation."