Google reportedly closed the Stadia Games and Entertainment (SG&E) studio, which is dedicated to developing the company's exclusive games.
The move signals that Google will not be competing with the two largest brands in the video game arena namely XBox and Playstation.
"Given our focus on developing Stadia technology as well as strengthening business partnerships, we have decided not to invest in bringing exclusive content from SG&E," Stadia Vice President and General Manager Phil Harrison said in a statement.
Harrison added that Stadia will instead expand its efforts to help video game developers and publishers to use Google's technology platform and offer the game directly to users.
Stadia will continue to offer video games from other developers.
Stadia, launched in November 2019, is an effort from Google to enter the video game arena and compete with Playstation, XBox or Nintendo.
Unlike traditional game consoles, Stadia allows users to play video games on devices such as Android phones or Chromecast apps on television, via Google’s data servers.
According to media reports, about 150 people will lose their jobs following the announcement, including closing SG&E offices in Montreal and Los Angeles.
However, Google guarantees that all such employees will be placed in other departments.
"We are committed to working with this talented team by giving them new roles and supporting them," said Harrison.
