Can Google Stadia Compete With Video Game Consoles?

Can Google Stadia Compete With Video Game Consoles?

Talk of console wars has
dominated video games for years. There are gamers who swear by the benefits
of gaming in front of a keyboard and mouse on a custom built P.C., while others prefer the convenience and
ubiquity of consoles like the Xbox and PlayStation. Those console brands in
particular have built a name for themselves as powerhouses in the
world of convenient at-home gaming. Microsoft sold 30 million units of the
Xbox One console between its release and November 2013 and the end of 2017. Sony sold 73 million units of the
PlayStation 4 console and that same time period. Video games are a
big business in 2018. Video games and EA
Sports generated about $24.4 billion in revenue about $2
dollars higher than 2017. The industry is expected to hit $31 billion
by 2023, but at the same time, console sales are falling. Console sales were forecast to decline by
12 percent in 2019 compared to the year before. But there’s a new player
in the game: streaming video game platforms. The reason that streaming is
appealing to consumers in a vacuum is that it obviates the
need to purchase a console. You could play from anywhere, on any device,
at any time and you don’t need to worry about your
hardware becoming obsolete. Google’s Stadia, Microsoft’s Project xCloud
and Nvidia’s GeForceNow make it easy to play top tier games without
the top tier console or p.c. The subscription -based services stream video
games from high -end gaming machines through the cloud, and that means
the future of video games may no longer need the console. Video games are a phenomenon that have
largely taken shape over the last 50 years. Arcades and at -home consoles launched
in the early 1970s and quickly flourished into a booming industry. Magnavox presents Odyssey The Electronic
Game of the Future. The Atari video computer system is
20 cartridges with 1300 game variations you play on your own TV set. But those really were the only options
for gaming in the beginning, at least until the personal
computer became popular. The p.c brought with it a new
way to play with friends too. As the advent of the internet meant
more and more people were hopping online, but consoles
weren’t there yet. It’s largely the famed release of the
PlayStation 2 in 2000 and the original Xbox in 2001 that brought console gaming
into the form we know today. Those consoles were praised at the time
for their breadth of content and specs and largely saw rave reviews. But the feature that was arguably the
most ambitious for these consoles was their internet connectivity. The original iteration of the PlayStation
2 didn’t come with Internet connectivity built in. It was sold as a separate accessory. But the original Xbox did, and
both Sony and Microsoft launched online services for these consoles about a
year after their release, Sony’s online connectivity was limited and largely relied
on individual game makers to facilitate the servers for those games,
much like how PC gaming works. But X-Box launched a whole new subscription
model as a way to manage online gaming. Xbox Live. Xbox’s subscription service facilitated online
gaming of legendary titles like Halo 2 and created a cultural
phenomenon of playing with anyone, at any time, around the world. There were a couple of
caveats to online play, though. The first was that you had to
have a fast enough Internet connection, and the second was the requirement that the
person you were playing with had the same console as you, regardless of
whether the game was available on multiple platforms. This lack of cross-platform play ability has
been a problem in the gaming industry for years. Even as the new generation of consoles
were released, the Xbox 360 and PlayStation 3 came with exclusive games that
would only be played on their platform and on their servers. It suddenly became important which console
you had in which your friends were playing on. The PlayStation 3 came
with the new PlayStation Network, a free platform that allowed users to
get online with an optional premium PlayStation Plus that gave users
special perks and discounts. And massively successful video games like
Grand Theft Auto Online had tens of millions of players around the world
who only saw fellow players on the same console. But fast forward to 2020
and the sentiment of the walled garden of online gaming
is starting to change. Games like Fortnight, Rocket League and
Call of Duty Modern Warfare have done away with this and allowed anyone
with any console to play each other. And these games have
been massively successful. As of March 2019, Fortnite has 250
million people logging in to play with others. Suddenly consoles are becoming
less and less important. Performance on both the Xbox and the
PlayStation is solid and more games are starting to allow you to game with
others regardless of what you’re playing on. So is there a
need for consoles anymore? They know consoles are going away. They know that streaming in 20 years
is going to be so ubiquitous that you’re just not going
to need a console. Gamers have been wanting to take their
video games with them for years and console makers are starting to provide
services like PlayStation Now and Xbox Play Anywhere, stream your consoles games
to a screen of your choice. But these have been imperfect solutions that
still rely on you to shell out the cash for a console to begin
with, OnLive and GeForce Now changed that. And they were the first real streaming
services for games that used offsite company, owned hardware to
deliver games to users. And now Google Stadia has entered the
mix and promised 4K gaming over the internet entirely on Google’s servers. All you need is an account,
a screen and a controller. Stadia even has a selection of games. It includes in its
paid subscription for $9.99 a month. If you go with the free
version, you’ll have to buy the games yourself. Microsoft has also started planning
its foray into the streaming game wars Project xCloud is meant
to take on Google’s directly, streaming games from Microsoft’s own
cloud computing infrastructure. And really, it makes sense that these
are the two big players in the streaming gaming industry right now. Google and Microsoft are responsible
for a combined 19.5 percent of cloud infrastructure
services in twenty eighteen. Microsoft Azure is 15.5 percent of that. Combine that with
Microsoft’s mastery of gaming with its Xbox platform, and the company stands a
real chance to take hold of the streaming video game industry. Delivering a seamless streaming experience really
is a function of data centers more than anything. I mean, the technology knowing that Gaikai
and OnLive, had the technology 10 years ago and it was
not perfect, but it worked. And here we are 10 years later. You know, E.A.’s doing
it on mobile phones. I mean, I’ve seen it and E.A. is, you know, a small T
tech company, unlike Amazon, Apple, Google, Microsoft, Sony are bigger
T tech companies. In short, these companies could drive people
to streaming instead of to the store to buy a console. So what does all of this new
tech mean for the future of consoles? Can Stadia really replace them? So Stadia has been a great idea. It’s been a lot of fun to play
at home, but I’ve noticed in the community, especially on Reddit, people are upset about
a bunch of things, whether it’s a lack of updates or a lack of games. Stadia is not necessarily a concern
for Microsoft or Sony, who’ve now announced Xbox Series X
and PlayStation 5. Xbox Series X seems like it’s going to be
more of a service in addition to a console, so might see xCloud
built out into that. Or maybe console owners get access to
streaming video games or just people can go out and buy
a streaming subscription from Microsoft. Microsoft is banking on the future
of streaming games with its project xCloud. But in this first iteration,
there are just too many opportunities for streaming to go wrong, particularly
when gaming on the go. At times, playing on 4G LTE meant
frozen screens, choppy audio and controls having a mind of their own and Stadia
itself isn’t ready to fully take on video game consoles. You need one of
Google’s latest smartphones to play on the go or a computer running Chrome
if you want to play at home. Some of these problems are growing pains
for any new service, but others are out of any one company’s hand. So what needs to change? 5G could be the linchpin in
making a service like this work. The increased speed and throughput could mean
even users in a crowded city could see lag -free gaming. In urban areas like cities, you
have wireless carriers launching what’s called millimeter wave 5G and that’s about
10 times faster than 4G LTE. There’s also this sub-six gigahertz 5G, which
isn’t much faster than 4G LTE. So what you really need is more areas
with the millimeter wave 5G so that people with Stadia can play games with
fast enough speeds to connect online and stream all these graphics. But 5G is only available in select
locations by most providers in the U.S., with them promising to expand in 2020. And that technology, too, is
in its early stages. Some early testing of 5G has found
that speeds are largely dependent on how close you are to the tower or if you
have a clear line of sight and more. The solution for 5G is put a
tower on every single streetlight, which means the real estate’s there, power supply is
there and it doesn’t go through the glass so we’re all going to have to
have some kind of router that has an external receiver and suddenly everybody’s
going to have internet everywhere and super high speed. That’s the best thing that could happen
to any content owners who wants to distribute their content. Then there’s the
service itself, which only has a handful of games to play. Google has announced that it will add 120
titles to its service in 2020, but until these games are available, there
could be little incentive for people to take the service seriously. And that really is what could make
or break a streaming service like this. The more people that join, the more
people there are for companies to cater to and more players to interact with. This is where a service like
Google Stadia could live or die. Google is known for how readily it
will kill a service if it’s unpopular. So one of my biggest fears with
Stadia still remains, and that’s that Google has canceled dozens of products in the
past that they don’t take off decides that just no longer
interested in the market. And I think Google could still potentially
do that with Stadia one day. People don’t buy it, they could just
say, ‘OK, we’re ending the service, it was a fun run’ and maybe licensed
the technology to other companies instead of fully supporting it itself. Plus, other companies have different solutions
for how to game anywhere. Take Nintendo’s Switch console. Which gives you the ability to take the
same console you play at home with you on the go. Or the growth of
the video game industry on mobile devices. A study from Activision-Blizzard and
Newzoo, you found that 2.4 billion people would play a
mobile game in 2019. That study found that one in two apps
open in the seven day period were games. This might not be enough to
end consoles altogether in the near future, but there are more and more
ways to get your gaming fix without buying one. There’s a portion of the
population who will just never buy a console, but it doesn’t
mean consoles go away. If Microsoft and Sony make that a
really good experience, they’re going to have a really faithful group of
consumers who will support their consoles. I just think each
console generation gets smaller. And what I can’t predict is what these
consoles will do for me other than play games.

Author: Kevin Mason

100 thoughts on “Can Google Stadia Compete With Video Game Consoles?

  1. There's a drop in sales because people are waiting for next generation consoles which are already announced. Do you think people are this dumb to not get it?

  2. Have you looked at the sales numbers for Stadia? It's failing HARD if it was like Netflix for games then i could have done well. But as it stands it's a big flop. And i'd bet good money Google drops it in 2 years.

  3. It's all about the games. If Stadia launched with Fortnite, League of Legends, Rocket League, etc. We'd have a different story right now. Hopefully they stay committed to this thing. It works amazingly well, just need games to play.

  4. This is cool and all but I have a few concerns

    1 preservation is a huge concern

    2 internet speeds for rural areas

    3 data caps those are a nightmare

  5. @ 5:17 …in 20 years you won't need a console.

    Really?!?! Does anybody in their right mind actually believe Stadia will be around then?Google can't get streaming music right.

    Stadia will be another corpse on the pile of dead Google products within 3 years.

  6. 11:40 you're talking like Sony and Microsoft have just made their first console or they do not have experience. Of course they have a faithful group of consumers who purchase their products. How do you think they have survived for so long and still going strong?

  7. Short answer: no

    Long answer: Google will abandon stadia by the end of next year. Stadia will not be able to compete with Xbox gamepass. Streaming is the future, but stadia isn't.

  8. Latency would always be a problem. The only way to beat it is to have servers like every 10km. Or maybe they will go in direction of "not so interactive" games or turn based ones. They could be playable even with big latency.

  9. We are no where near it for "proper gamers".

    The difference between winning or losing a lot of games is so close. Even on games with dedicated servers you still get those with an advantage ( even if its really small, that's all you need to tip the scales)

    And that's with simple vector information being sent, add ito t all the processing power that requires to run the game and competitive gaming can never happen.

    20 years minimum, when everyone have 50GB internet packages.

  10. Last Google stadia post update its saying next 6 months we will get 10 exclusive games and 120 Games. This good news for us stadia fans 😊

  11. CNBC, like pretty much anyone that might try to analyze the console wars or other tech companies don’t truly know much about the business. The console wars is driven by innovation, of course the sales of a videogame console that was released on 2013 will shrink by 2019 but is not because the gaming industry is moving on to streaming, but because is been announced that newer consoles from the top players will emerge. To be quite honest streaming games isn’t necessary more convenient, in fact I can only see that help the gaming business grow even further. What will most likely happen is that Sony or Xbox will put stronger holds on their exclusive games to maintain competitive edge. That’s what’s going on and it has been going on for a long time.

  12. So I have stadia and a PS4 pro. The graphics on stadia are so much better. I tried to replay Witcher 3 Because I didn't finish it. But it's so ugly compared to stadia games I've been playing. I know graphics aren't everything gameplay over graphics etc etc. But its a big difference.

  13. Apart from the mext generation coming most of the people that wanted a console already bought it so the number of people who want it is decreasing over time

  14. I for one have an Xbox One X and Project xCloud. This means that with good internet connections, I can play xCloud absolutely anywhere at anytime and any place. However, I still like knowing that I own the hardware, and if anything were to happen, I still have a machine that can run without the internet (e.g.- Single player games).

  15. CNBC you need to stick to your political news. Most of your staff and cohorts make fun of video gaming industry. The facts are too distorted and you didnt even point out the reasons for Stadia suffering. Leave these news to other video gaming channels as they do better justice.

  16. The Dreamcast was the first console with a built in modem.

    Big part of the reason console sales slowed is that the next gen consoles are coming out next year.

    Also, you ignored Nintendo completely.

    Do some research, you clowns.

    This video is basically an ad for Stadia.

  17. Reasons Console sales are falling:

    1 – People already have the console or buy second hand.

    2 – Next gen consoles are coming out this year.

    3 – People are switching to PC.

    You can’t make a video about video games without a gamer.

  18. PS4 is the best selling console. And google stadia is trash it’s broken. Have you even played it? It doesn’t work. Stop with fake news bro trying to work at CNN? Maybe you should fact check before you launch a video. Stupid joke of a person trying make news.

  19. CNBC and this guy is a fugging repard. NO google stadia will NEVER compete with consoles or pc because stadia is stuuuuuupiiiiiid. only poor people with stttuuuuupppppiiiid brains will buy stadia.

  20. Sony need to pair with amazon for a better streaming service. And you should look up shadow tech. It gives you your own personal power house computer to do whatever you want for about 13$ a month

  21. How about the fact that you have to pay full price for games that you ever own and that can be taken away at any time. If you “purchase” 20 games on stadia at a cost of around $1,000 and stadia gets cancelled then all of those games you bough disappear

  22. This guy is not a gamer he has no clue. Stadia is a massive failure soon maybe in one year it will be cancel. PlayStation 5 will make everything forgetable. Stadia is for idiots not gamers.

  23. Not now but in the future, when technology improved, streaming will be mainstream. Physical hardware at that point would only really be used by pro who need every advantage they can get.

  24. Hard CDs are better than streaming , especially when digital games can be canceled out from sale or taken away from you

  25. Sounds good until you realize streaming takes up gigabytes of bandwidth. Having to have the same console was a flaw built into the consoles to force people to buy a certain brandname. TCP/IP does not care what console, PC, OS, browser… you use. It was about forcing people to buy a certain product.

  26. Console sales are falling because the current consoles are at end of life and the next gen will be released soon.

    You can download the file here:

  28. "Can Google Stadia Compete With Video Game Consoles?"

    probably not within the next 2 years, but they might in the distant future.
    but only if Google keeps improving it.

  29. "It's largely the release of the PS2 and the Xbox that brought console gaming into the form we know today" so…. This video is just gonna pretend like Nintendo isn't a thing. Got it.

  30. Clueless CNBC. People should not underestimate Google pushing this Stadia advert on Cnbc. Google Stadia has already flopped. There is nobody to play online against. Developing games takes years for a new console. What’s Stadia spec now ? Are they going to change it in a years time ? Then two more years for new games to support that and so on. Then there’s lag. Cross play is minimal at the moment. In twenty years the picture might be different but not in 2020. Stadia only allows you to play on Google own phones, that’s pants. Plus you have to pay new price for old games.

  31. It has been stated that Stadia will continue to upgrade over time. Due to the lack of deadline prefacing this question and Stadia being in a constant state of upgrades, at some point it is bound to be better than consoles.

  32. its funny how haters say stadia flop before the 0$ stadia base even launched yet. i like to see these people who has rent to pay decide between buying a console (300$) plus online membership (60$) plus the game (60$) = 420$ of total investment or just the 60$ game. yeah make that decision when you got rent to pay, and tell me staida isn't for anyone.

  33. bruh what about the nintendo switch …. clearly they are missing nintendo's hybrid consoles point. I mean if people want to play on the go, the nintendo switch can do that………. Plus they aren't a new and developing company, nintendos been around for many years now and the switch is innovation

  34. I do know. Apps like Netflix in 4k. playing ULTA BLUE RAY. discs. Screenshots and chat. Trophies And bigger storage on the hard drives than mobile, and the list goìng on.

  35. There is NO ONE that claims or is a gamer that will EVER use a phone for a game over consoles/PC. The PC is of course superior to consoles and always has been and will continue to be for the immediate future.

  36. Think about all the e-waste that'll be obviated if gaming consoles are not manufactured…. producing a gaming console requires a very elaborate coordination of several industry bodies and Consortiums and firms across global supply chains and so if all manufacturing and related activities can be concentrated at some AWS or GCP or Azure etc, innovation in hardware design will grow 10x every 5 years… many advantages that i could go on forever!……no need to ever think about hardware obsolescence……huge reduction in carbon footprint

  37. I think it can compete personally from a technical standpoint. My Stadia runs phenomenally. However in regards to games lineup no. It's getting beat out by letting consoles beat them out with games that aren't even exclusive like Control, Jedi Fallen Order ECT. That's not even the worst part, they have no exclusives of their own that set them apart.

  38. The boomer "video game analyst" said onLive "wasn't perfect" and had some small issues.
    It was literally unplayable, I don't think a single person ever finished a game through that streaming platform.
    I was hoping they would address how awful x264 looks and how the bitrate is not enough for the games to look sharp enough for someone that's been playing games on consoles or PC their entire life but they never did.

    What a poorly researched video with an even worse analyst.

  39. never gonna bet my hard earned money on Google. had terrible experiences of them cancelling so many of their services which people have used for a long time.

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