@michaelmikado: "On a $60 game the royalty would be around $18 which would likely be used to cover the cost of streaming it. The only issue with this approach is that there is little reason to incentive reducing game prices over time because that would also reduce royalties. I expect games to remain full price for longer if not indefinitely in order for the "free" method to remain fiscally viable."
This is a really important point - especially for PC where games tend to have steep and frequent discounts on the digital stores. While everyone seems to be throwing their controller at the screen over internet speeds, this seems like a more real issue.
To the internet speed thing: I think it's almost a non-issue. You can throw stats up about how few people have the right internet speed - but note that most of those people aren't the audience for this product in the first place. The correct stat, which I've never seen anyone post, is what % of *core gamers* has the required speeds. And what % of core gamers is interested in game streaming?
My guess: something like 90% of core gamers in the US who would ever be interested in this product in the first place DO have the requisite internet speed. Does anyone honestly think Google is releasing this without having done any such market research?
Also, sidebar - don't forget Google is selling its own internet service - and that has the requisite speeds and NO data caps. Stadia isn't being sold in a vacuum - it's part of a bigger Google product family
Correct, the inability to discount will be the hardest sale.. All digital distributions models gained widespread success because of the ECONOMIC advantages. Netflix took off, not because people wanted to watch movies from their computers, but because they could watch 100s/1000s of movies and shows from their computers of $8 a month. Steam, didn't take off because it was digital distribution. It took off because you have humble bundles and other deals where people are literally getting huge libraries of games for pennies. Stadia will have to overcome this important hurdle to be truly competitive. However I am interested to see where it goes.
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