Alphabet’s (GOOGL - Free Report) division Google has been firing on all cylinders to expand presence in the cloud gaming space backed by growing initiatives for its game streaming platform — Stadia. Notably, the game streaming platform was publicly released in November 2019.
Recently, the company announced that it is opening a second development studio for Stadia. Its first studio is located in Montreal.
The new studio will be located in Playa Vista, California. It will be led by Shannon Studstill who was formerly the head of the venerated Santa Monica Studio that developed the God of War franchise for Sony.
The latest studio is likely to enhance Google’s gaming skills. Though specific details are yet to be disclosed, the studio definitely aims to focus on delivering exclusive games so that it can make its platform more attractive.
We believe the move will enable Google to deliver enhanced gaming experience to players, which in turn will bolster the adoption rate of Stadia.
Moreover, increasing investments by Google to bolster presence in the cloud gaming market, which holds immense potential, is likely to drive growth in the near term.
Alphabet Inc. Price and Consensus
Cloud Gaming Space Holds Promise
The search giant has been focusing in the cloud gaming market for quite some time now.
Per a report from MarketsandMarkets, the global cloud gaming market is expected to reach $3.1 billion at a CAGR of 59% between 2019 and 2024.
According to a report from Global Market Insights, the market is anticipated to see a CAGR of 30% over theperiod of 2019 to 2025.
According to Valuates Report, this particular market is projected to reach $740 million at a CAGR of 41.9% between 2019 and 2025.
Google is developing 450 games currently, which will be released on Stadia in 2020 and beyond. We believe that the company is well poised to penetrate rapidly on the back of its Stadia-expansion initiatives. The latest move is in sync with this strategy.
Intensifying Gaming Battle
The presence of an upbeat potential in the cloud gaming market has not only attracted Google but other tech giants like Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Facebook (FB - Free Report) and Tencent.
In December last year,Facebook acquired a Spanish cloud gaming company —PlayGiga — to gain foothold in the market. Moreover, the social media giant offers Facebook Gaming, which enablesusers to livestream their gameplay.
Further, Amazon is gearing up to announce its cloud-gaming service, which is expected to release in 2020. Moreover, the service will come integrated with Twitch, which offers video game streaming services.
Meanwhile, Microsoft is planning to launch its cloud-gaming platform — XCloud— in 2020, which is currently in public beta stage.
Nevertheless, Google’s growing game streaming initiatives are likely to strengthen its competitive position against the abovementioned companies.
Moreover, the company’s cloud-computing strength isa major positive as it strives to offer low latency, which in turn is likely to deliver better gaming experience.
Zacks Rank and Stocks to Consider
Alphabet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>