Stadia, a cloud video game company that was launched three years ago, has been shut down by Google, which allows users to access console-quality play as quickly as they do email.
"It hasn''t gained the traction we expected from users, so we have made the difficult decision to proceed with ending our Stadia streaming service," Google vice president Phil Harrison said in a blog post.
Google has stated that its purchases of Stadia hardware, such as controllers, as well as game content, will be reimbursed, and that players will have access to the service until January 18 of next year, according to a spokesperson.
Stadia was built with a good idea and a bad business model, according to Wedbush Securities analyst Michael Pachter.
"They tried to offer the service as a subscription without games," says the author.
Microsoft, the Xbox maker, offered a rival Game Pass service "with a ton of games," making it a more enticing option for players, according to Pachter.
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The game Pass has around 25 million subscribers, while Stadia has less than one million, according to the analyst.
Microsoft is recognized as the streaming video game of the past, with its Xbox Game Pass service, and a broader group of players who use its consoles and desktop computers.
A growing number of video game studios is at the core of Redmond, Washington.
While Microsoft develops Xbox video game consoles, it has taken a turn towards allowing users to play titles on internet-connected devices of their choice, with titles hosted in the cloud.
In its most recent cloud gaming strategy, Microsoft has announced that the capacity to play Xbox games will be transformed into Samsung smart televisions.
"We''re on a quest to bring the joy and joy of gaming to everyone on the planet, and bringing the Xbox app to smart TVs is another step in making our vision a reality," Microsoft Gaming CEO Phil Spencer said in a statement.
Microsoft has reclaimed control of one of the world''s most lucrative markets early this year through a $69 billion (roughly Rs.5,62,730 crore) contract to take over Activision Blizzard, a video game company, which has previously been named the largest acquisition in the industry.
The Luna video game streaming service was launched early this year by Amazon, aiming to expand its multi-billion-dollar empire into the gaming business.
Luna allows players to access games remotely without having to purchase a console as part of the cloud gaming software that is considered as a future direction.
Luna takes on Sony and Sony, as well as Stadia.