Google has issued a very "everything's fine, no need to worry" press release about Stadia.
Basically while Stadia will continue and Google plans to continue adding features to it as a platform, there will no longer be internally developed games.
On the one hand this is definitely focusing on Google's strengths. As Amazon has also shown, these tech companies don't do internal game development very well for whatever reason. It seems like Microsoft is the only one big tech company that can actually manage a semi-functional suite of game studios (and some might argue against that) but of course Microsoft has been in the business for 20 years.
This doesn't mean that Stadia will be shut down but it's obviously not a good sign, and I personally would be extremely nervous about buying games for the service. At least Luna is a subscription so you're not investing a bunch of cash up front for games you might never get to play.
Maybe Stadia will thrive and last forever, and again Google makes much more sense as a platform manager than a game maker, but there aren't any examples of successful console makers without internal development and even streaming companies have all moved into internal content development of some kind as well. The integration of the two is just too powerful and makes too much sense.
It's also another big advantage to Xcloud in the eventual game streaming wars because all the platforms can pay third parties for exclusives (and they will) but Microsoft having internal development is a big advantage, especially with ownership of Bethesda (and the rumor that they're looking to buy another studio.)
I personally hope Stadia stays in business because competition is good for the consumer, but at this point I would bet on Xcloud as being in the best streaming position, with Playstation Now a close second (Sony has better content but less financial and technical resources.)
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