Google LLC today announced it’s shutting down its Stadia game development studio in a possible sign that all is not well with its cloud gaming service.

Stadia, announced in March 2019, allows users to stream games through Google’s data centers, negating the need to have high-end hardware and allowing users to play high-end games on mobile devices, laptops and smart TVs. Although existing games can be adapted to work on the service, Google also set up its own dedicated game studios in Montreal and Los Angeles to develop games for Stadia. It’s those studios that are now closing.

In a blog post, Phil Harrison, vice president and general manager of Google Stadia, spun the announcement as a move focusing on Stadia’s future as a platform. “In 2021, we’re expanding our efforts to help game developers and publishers take advantage of our platform technology and deliver games directly to their players,” Harrison said. “We see an important opportunity to work with partners seeking a gaming solution all built on Stadia’s advanced technical infrastructure and platform tools.”

Harrison noted that because of the shift in focus, specifically a focus on building on Stadia as well as developing partnerships, Google has decided not to invest further in developing exclusive content beyond any near-term planned games.

Along with the decision to abandon in-house game development, Jade Raymond, who headed Stadia Games and Entertainment, the Google division tasked with developing in-house games, is also leaving Google. The Associated Press reported that Google did not disclose the total number of job cuts but did say that most of the staff in the game development division will be moved to other roles.

The overall impact on Stadia going forward is open to speculation. Google has never revealed how many users the service has, so it could be struggling or could be going better. As Android Police noted, “even Google doesn’t want to make games for Stadia anymore,” suggesting that the future may not be particularly strong. But there have been some notable successes: The troubled release “Cyberpunk 2077” was made available on Stadia last year and by some accounts was the game’s most stable release.

Looking at the bigger picture, The Verge argued that Stadia moving away from in-house games development makes sense because the cost of AAA games — so classified because they’re considered highest-quality and most highly promoted — is high. “But it also means that Stadia’s future will likely be relegated to just another option where you can play the same games as you can already play on a PS5, Xbox Series X or PC,” The Verge said.

Photo: Google/livestream