Google pushes into video games with Stadia service

The Alphabet unit unveiled on Tuesday a new game streaming service called Stadia at the Game Developers Conference in San Francisco.Stadia lets developers build new games on a streaming platform that will allow players to access the action through the web instead of having to buy expensive consoles or personal computers.

"There's no word on pricing, what's the revenue model?" said Joost van Dreunen, co-founder of gaming research firm SuperData."It's a little bit like saying we're going to start a restaurant but we have no idea what cuisine we're making." It repeatedly mentioned the advantage of its cloud-computing power and YouTube, suggesting the service is designed to bring more users to those units - two areas where investors are looking for sales growth beyond advertising.

Google may need to acquire in the area"because content will remain the king irrespective of the technology," he said. The high-end streaming quality Google claimed in its announcement will only be accessible for people with fast internet connections, Waral said. In addition to buying video games for the service, Google will also have to modify and upgrade some of its data centres to handle the game-specific traffic generated by the new service.

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