Cold Call
Should Google Stay in the Cloud Gaming Business?
Feb 18, 2025
In this discussion, Derek van Bever, a Senior lecturer at Harvard Business School, and Akshat Agrawal, a recent graduate and co-author of the Google Stadia case study, tackle the challenges Google faced in the cloud gaming market. They explore Stadia’s strategic choices, from casual gamers to potential missteps against competitors like Microsoft and Sony. The duo emphasizes the need for strong market strategies and insights gained from Stadia's rise and fall, ultimately questioning the future of cloud gaming for tech giants.
34:39
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Quick takeaways
- Google Stadia's challenges reflect the importance of understanding gamer segmentation and aligning product offerings with user expectations in a complex market.
- Despite Google's technical prowess, their cloud gaming strategy faltered due to a confusing business model and lack of engaging content for gamers.
Deep dives
The Popularity and Impact of Gaming
Teenagers are increasingly devoted to gaming, spending two to three hours daily on video games and apps, making this the second most significant activity after social media. This trend has been further fueled by the COVID-19 lockdowns, leading to a substantial audience for gaming, especially in professional e-sports. Predictions indicate that e-sports could attract an audience of 640 million by 2025, illustrating the growth potential within this sector. This popularity places gaming and its associated companies in a prime position for strategic investments and innovations.
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