Google: Their Playbook in Gaming

Google = Controller + Project Stream + YouTube Gaming + Unity (Acquisition)

Google is about to own the video gaming space.

We think they’ll do this in 3 phases:

1. Consumer adoption (a controller, blending console + PC ) — announcing Tuesday (March 19th) at GDC
2. Content Onboarding (exclusive & cross-platform) — next 12 months
3. Creator’s toolkit (Google buys Unity) — within 18 months

Tomorrow (March 19th) marks the start of this process. Over the next 24 months, we believe Google will likely own each part of the value chain from the creation (Unity), distribution (Project Stream + YouTube Gaming), and adoption (PC + Controller) across the video game industry.

Phase 1: Consumer Adoption

With GDC kicking off this week, and a lot of hype surrounding the impending announcement from Google, we believe this will be a controller. Stepping back for a minute, here is what we do know.

1. Google just finished beta testing Project Stream in January
2. Google filed a patent for a controller (but no console)
3. On March 12th they tweeted out “Gather around as we unveil Google’s vision for the future of gaming at #GDC19.“
4. Google has one of the worst-kept secrets: Google Yeti, a rumored cloud-gaming “console”, but this is probably just a controller giving a “console-like” experience.

GDC Announcement: It’s a Controller

Tomorrow at 10 AM PST, Google is planning on making a major announcement revolving around the future of gaming. We’ve all heard about Google Yeti and Project stream and we believe this is going to be when they come together. There have been rumors that it would be either a dongle-like product similar to the Chromecast, or even it’s own standalone “console.”

With Google’s patent around a controller and not a console unit, we are predicting that this isn’t a console hardware but a controller that plugs into any Mac or PC.

This controller gives the consumer the ability to play any game on Project Stream as if it was a console experience. Also, you’ll be able to take your controller to any screen (TV or desktop) with an internet connection and remote-launch your gaming experience from the controller.

The days of carrying your Xbox/PS4 over to your friends house are over. Just bring your controller, which already knows who you are and what games you own.

If they don’t want the controller, then a traditional keyboard will work just fine.

Phase 2 & 3: Content Onboarding + Unity Acquisition

We believe Google is going to get into the development scene at some point if they really want to be an integral part of the future of video gaming.

This is where we predict that Google buys Unity, previously valued at their last round at $3B+.

This would make a lot of sense as it would give them access to thousands of titles built on the Unity platform. They could also give incentives to non-Unity studios by helping them with distribution via Project Stream & the entire YouTube community (including influencers). They will also likely begin to buy up studios to guarantee that they have access to the top dev teams.

YouTube Gaming will be directly integrated into Project Stream and Google will look to make Youtube Gaming the premier streaming service of cloud gaming going forward. They will likely do this by rolling out titles that are Project Stream-exclusive titles and partnering with streamers to promote the titles.

This will take time to roll out and integrate correctly because gamers only watch their favorite titles or the ones with the most fandom in the market. Therefore, until Project Stream has popular titles (or exclusive), played by popular streamers, there won’t be a substantial market for viewers. However, we think Google will solve this problem quickly.