Former Stadia developers Alex Hutchinson and Reid Schneider said Google scrapped plans to develop studios for its streaming gaming service due to underestimating the investment required to develop them.
Hutchinson and Schneider joined the Stadia team as Senior Creative Director and Executive Producer after Google acquired their company Typhoon Studios, developer of Journey to the Savage Planet. Google acquired Typhoon in December 2019 to help create exclusive content for its cloud gaming platform. Less than two years later, the search giant abandoned the venture, closed several studios and lost a ton of talented developers. Hutchinson and Schneider reunited with a group of former Typhoon developers to launch Racoon Logic in Montreal. Now they decided to share information about why Google backed down.
Hutchinson says Google has realized that content creation is scary, risky, and expensive. This activity requires tremendous trust in people and, in general, is simply not the main business of the search giant. Schneider agreed with his colleague and added that it ultimately boiled down to the level of investment required to achieve a result. According to the developer, if the initiative does not have the potential to reach billions of people, Google is channeling labor and capital into other areas.