What happened?
On Tuesday, Google unveiled a new game streaming service called Stadia. The service will let developers build new games that will allow players to access the action through the web. In addition, the company introduced its own controller, which creates console-like gaming on a computer or smartphone. The launch of Stadia is planned for this year.
Why is it important?
In general
For sure, gamers should be excited. In the modern world, where it’s necessary to spend a great deal of money on a decent console of a powerful gaming PC, it’s nice to know that there might be a chance to diminish the hardware expenses while still enjoying the game show of the top quality.
For investors
Google is already present at the gaming market through its Android app. However, the new development will let it access the high-grossing segment of more complex games. For now, there’s a lack of details about the venture. We don’t yet know how the company will collect revenue from the service and who it will partner with. There are no doubts that there will be challenges ahead. However, it’s clear that with YouTube and an extensive network of data centers Google has the capacity to make the project into reality. All in all, the presentation left a pleasant impression of a dynamic development that’s taking place. This is a piece of news investors tend to like.
It will be necessary to monitor the project in the upcoming months fishing for the news about which game developers agree to use Stadia, and how much this will cost Google. The expenses will obviously be high, so the service has to live up to its brilliant idea in order to pay off.
For traders
Alphabet stock is on the upside since the start of the year. Notice that the price met resistance in the $1,200 area (January 2018 high). This can be a serious obstacle, so a convincing break above it is needed to open the way up toward 2018 highs just below $1,300.
Stocks can be traded as CFDs at eToro.
