Bait and switch at Stadia game studio
Google vice president Phil Harrison apparently congratulated developers at Stadia Games & Entertainment on making “great progress” just one week before the studio was shut down.
Stadia Games & Entertainment was Google's short-lived attempt to produce first-party games for the Stadia cloud streaming service. Harrison praised the studio for making “great progress building a diverse and talented team and establishing a strong lineup of Stadia exclusive games.”
Short con: Just five days later, Harrison announced that Google would “not be investing further in bringing exclusive content from our internal development team SG&E.”. What caused the sudden change?
Sunk cost: Apparently, Microsoft's acquisition of Zenimax Media was one of the factors contributing to the decision. “Creating best-in-class games from the ground up takes many years and significant investment, and the cost is going up exponentially,” Harrison explained.