Why Google Stadia failed

+ 7 powerful phrases for PMs

How can a product that Google said it had “thousands” of people working on fail? It’s a great case study.

Why Google Stadia failed:

1. Starting tech first

Stadia was all about hopping aboard the cloud gaming future. Google launched with the hopes of bringing users without expensive gaming hardware “streamed” gaming. But it misdiagnosed users. Google thought they have fast internet & lack gaming hardware.

But gamers have gaming hardware! PCs or consoles: Xbox, Playstation, Nintendo Switch. And SLOW internet: the average internet in the US is 26 mbps, not fast enough for 4K stadia streaming. So Stadia appealed to only a very small niche.

2. Lacking exclusives

Consoles succeed because of their exclusive games. Gamers pay hundreds of dollars for titles like: Halo, God of War, and Legend of Zelda. Stadia titles didn’t compete: GYLT, Hello Engineer, and Pac-Man Mega Tunnel Battle.

Cloud gaming alternatives from Microsoft and Sony had better games. For a software company, this was quite an error on Google’s part. They took a hardware strategy in a software market.

3. Making it hard to port

At 3% market share, few devs build for linux. Computer games are built only to run on Windows. Because Stadia chose the linux kernel, devs had to port. Porting was too hard to help Stadia build a large enough catalog of games.

Why did Google choose Linux? Microsoft server licenses are expensive. Former GeForce Now PM Matt Enthoven wrote that it accounts for a “significant portion of the cost to run a cloud gaming service.” But this cost decision turned out to be the wrong one.

4. Confusing business model

Stadia initially released with an emphasis on its $130 founders edition. This included the Stadia controller. Then users paid a $10 subscription per month. But the exclusives were sparce, and no one just buys a controller. So no one subscribed.

Later, Google made the subscription less of a focus and allowed users to buy individual games. It gave some users access to titles they otherwise didn’t have the hardware for. But not that many. On the other hand, Microsoft and Nvidia offered bring your own games.

5. Microsoft’s counter-moves

In 2019, Microsoft’s head of gaming and Xbox, said: “When you talk about Nintendo and Sony, we have a ton of respect for them, but we see Amazon and Google as the main competitors going forward.” And MS went to battle deliberately.

In addition to investing in Xbox Cloud Gaming with bring your own games, MS also went on a studio buying spree. Some of the most interesting reporting on Stadia this week was that, the Google Stadia GM said this spree led to the closure of Stadia’s independent studios.

Given the important of exclusives, closure of its studios nailed the coffin for Stadia. That decision last year effectively precipitated the decision this week to cease Stadia operations for good.

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7 powerful phrases for PMs

“What I’m hearing is…”

PMs often run meetings with folks expressing differing opinions. This phrase shows you’ve listened. It’s also a great way to “level set” what you are talking about. It prevents folks from bringing differing opinions about what has been said.

“No, Thank YOU”

As PMs, we’re often thanked for doing something. But, that same person has often done, or is about to do, something for us! Flipping the gratitude can go a long way to motivating them. It’s an easy way to show appreciation for a teammate’s work.

“Is this actually why?”

Many times PMs are faced with a problem. Solving it requires getting to the bottom of what’s causing the issue. Asking the group what the driver is, is a powerful way to get everyone thinking. It gets folks to move from symptoms to causes.

“I trust you to make that decision”

Often, there are design experiences or tech decisions PMs could help with. But it will slow things down. Empowering others to make the decisions is a powerful way to remove yourself as the blocker. And it helps them feel valued.

“X, what do you think?”

As PMs, we’re often put in the position of running meetings. But the loudest meeting attendees don’t always have the best ideas. It is powerful to give those who haven’t found a chance to speak the floor. You get a broader range of ideas.

“I’m not sure. To figure it out…”

PMs are often asked about details we can barely remember. It’s powerful to admit you don’t know. It’s doubly powerful if you outline the path to getting the answer. People view you as knowing your limits, and being an effective router.

“How can we validate that?”

In product discussions, people often have strong points of view. These can easily turn into “who can talk louder” arguments. Asking to validate helps you go from arguing to using research and analytics to make decisions.

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Bonus: How to break into PM from a non-traditional background

You don’t need a CS degree or an MBA to be a PM.

There are a couple things you should focus on developing, instead:

1. Product Sense

This is the ability to come up with ideas, and prioritize the best. Coming up with great product ideas is harder than it sounds. Without the reps of PM experience, you need to develop an eye for reading other products.

I have a few tips when reading them:

· Don’t assume everything works: Sometimes, you’re seeing an experiment

· Observe what is verifiably a featured rolled out to 100% at the FAANG companies: They tend to graduate good iterations backed by data

· Ask YOURSELF how a feature succeeds

2. Execution Reps

Reps provide learnings about hiccups in the process of building features. Try to get involved yourself with small groups working on software startups. Pick up the actual experience.

I think of execution learnings in a few buckets:

· Influence: You learn how to frame and sell ideas

· Process steps: You learn about telemetry, legal & market collaboration, release schedules, and corner cases

· Wisdom: You approach problems with an “ah yes,” mentality

3. Technical Know-How

Begin the journey of catching up on technical fluency. Start coding, read engineering newsletters, & begin examining the tech behind your favorite products.

I find that technical skills are applied in a few areas:

· Understand the realities of what coding different things will take, to work size them

· Have empathy for the life of an engineer, to build great PRDs

· Least important: being able to advise on tech decisions

4. Speaking “Productese”

Product Managers speak with a certain lingo. They’re always talking about strategy, execution, above the line, the why behind the why… These are terms of art. They are specific to PM. Misunderstanding them can make it hard for you to “hear” others.

I think a few things can help:

· Talk to product people

· Read the canonical texts, Inspired & The Build Trap

· Subscribe to product newsletters like Product Growth & Will Lawrence’s Product Life

· Begin consuming product thought leader’s content, like Aatir Abdul Rauf & Shyvee Shi

5. Ability to Interpret and Pull Data

The best way to stop arguing away and make better decisions is data. PMs rely on it to come up with ideas, prioritize, and analyze.

There are several concepts you should become strong in:

· The financial statements: You should speak net vs gross revenue & income statement vs SCF.

· Common KPIs: You should speak funnels & conversion rates.

· Interpretation of A/B tests: You should speak significance & power.

We’re in the era of capability, not credentials. Of course a CS degree & MBA will make you a better PM. But these five skills form the crux of what you need.

With YouTube, Google, and grit, you can acquire the skills. Just like the great PM I know who used to be a waiter.