At the beginning of February, we were shocked when Google announced that the efforts to run in-house game development studios had ended, and as it turns out, the developers were just as surprised. A few days before the public announcement, Phil Harrison, general manager of Stadia, sent a big email to employees of Stadia Games & Entertainment (SG&E) praising them for “great progress” so far.
A report of Kotaku today sheds light on an internal email Harrison sent in the week before the closure of Stadia Games & Entertainment. In the email, Harrison praised the ‘great progress’ made so far by SG&E Studios, saying that Google would confirm the ‘SG&E investment cover soon’, outlining the strategy and objectives for the division in 2021 will inform. The email reads in part:
[Stadia Games and Entertainment] has made great strides in building a diverse and talented team and establishing a strong range of stage-exclusive games. We will soon confirm the SG&E investment envelope, which will again inform the SG&E strategy and 2021 [objectives and key results].
To make matters worse, Harrison later admitted (three days after the public announced) that he was aware of the looming closure of the studios while sending this email. Apparently, SG&E employees first learned of the studio closure almost at the same time as the public. If I look back, a slightly disturbing tweet from a creative director of SG&E from the day it seems to give the confirmation.
Perhaps the most frustrating detail in this report is the impact the closure has had on the more than 150 developers Google hired for SG&E. One source apparently said ‘we had multi-year insurance, and now we do not.’ Google had previously mentioned that it would find new positions for displaced employees in other parts of the company, but apparently the company is struggling to do so as the employees hired have specialized skill sets from which other positions cannot benefit. Google’s mismanagement of the situation does not stop there either, as sources also said that employees have a ‘serious lack of resources’, including problems in obtaining the necessary hardware and software, and that the company despite its high goals would no longer employ people. The freezing of rents was already reported in April.
In a call on Feb. 4, a question and answer between Harrison and Stadia employees is seen as described by one person as “a ultimately unsuccessful attempt to remove some sort of liability from Stadia management.” While Harrison did not provide the answers that some had hoped for as to why the studio closed so early, he specifically pointed to Microsoft’s acquisition of Bethseda as one of the many factors that led to Google’s decision. Another factor was apparently COVID-19, which is a headache as the pandemic boosted the gaming industry, although it had a negative impact on development (delays, etc.).
FTC: We use revenue to earn automatically affiliate links. More.
Check out 9to5Google on YouTube for more news: