According to reports, Microsoft’s acquisition of Bethesda is one of the factors that Google decided to close its internal stadia game studio. According to Kotaku, a foreign media source, after Google closed two internal game studios in Los Angeles and Montreal in early February, Phil Harrison, general manager of stadia, mentioned this during the Q & a session.
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Harrison pointed out that Microsoft’s acquisition frenzy and the plan to acquire Bethesda were one of the factors that prompted Google to decide to close its internal original game development studio. Unfortunately, Harrison didn’t go into much detail.
As for how Microsoft’s acquisition affected Google’s decision to close stadia studio, we still don’t know. However, there is speculation that Google is also looking for the acquisition of Bethesda to alleviate the problem of its insufficient game lineup, but Microsoft has taken the lead. Or Microsoft’s acquisition of Bethesda makes Google think that its first party games can’t compete with Microsoft’s cloud game service xcloud.
Interestingly, just a week before Google announced that it was shutting down stadia studio because of “rising game costs”, Google praised the studio for making “great progress”. In any case, the current internal studio of stadia has been closed. It remains to be seen how this decision will affect Google’s future development in the game industry.