The 2019 Game Developers Conference in San Francisco was dominated by Google's announcement that they are launching a game streaming platform called Stadia. Imagine being able to stream AAA rated games at 60 frames per second in 4K across multiple devices from a chrome browser with little to no latency or lag. This is the promise of Stadia (full announcement: https://www.youtube.com/watch?v=nUih5C5rOrA&t=2295s).
But why is Google getting into gaming? It turns out that Electronic Sports (Esports) is a huge industry. The market size of Esports is projected to cross $1bn in 2019 (https://newzoo.com/insights/articles/newzoo-global-esports-economy-will-top-1-billion-for-the-first-time-in-2019/). However, if you look at Fortnite, a game which is free to play, their 2018 revenue was $2.4bn. So $1bn is a gross underestimation of the market value.
Another way to understand the size of the market is to compare gaming vs movies. To develop and market Red Dead Redemption 2 it cost $400m+. In 3 days it made $725m, in 3 months it crossed the $1bn mark. Today's current value and tomorrow's future growth is why Google is entering the gaming market.
It seems that gaming is now going through the 6 D's of Digital Disruption (https://singularityhub.com/2017/12/29/what-are-the-6-ds-of-exponential-organizations/#sm.0001676oghr96fqjq9a1ha6301jy1).
If Google is able to fulfill the promise of streaming games at scale, it could be extremely disruptive and allow them to capitalize on a rapidly growing market.
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