Resurrecting a Failing Product: Lessons from Google Stadia
Learn to answer Product Strategy and Improvement question asked in recent interview with Google. Question: "Choose a product that you feeling failed, why and how you can revive it?"
Understanding Why Products Fail and How to Turn Them Around.
This was a question asked in Google interview in recent time.
We will analyse Google’s Stadia product which was closed on January 2023.
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What Went Wrong with Google Stadia, and How Would You Fix It?
In today's newsletter, we're diving deep into a classic product management interview question:
"Choose a product that you feel is failing.
a) Why do you think so?
b) Why did the product fail?
c) As a PM, how would you get it back up?"
This question falls under the Product Strategy and Improvement category. It's designed to assess your ability to critically analyse a product, understand the root causes of its failure, and propose actionable strategies to revive it.
Today's Post
Words: 5,896 | Est. Reading Time: 25 mins
Sections:
Introduction to Google Stadia
Why Do I Think Google Stadia Failed?
Analysing the Root Causes of Failure
Applying Dieter Rams' 10 Design Principles
Strategies to Revive Google Stadia
Key Takeaways for Aspiring Product Managers
1. Introduction to Google Stadia
Launched in November 2019, Google Stadia was Google's ambitious foray into cloud gaming. The promise was tantalizing: play high-quality video games instantly, without the need for expensive hardware, by streaming them directly from Google's data centers.
But as of early 2023, Google announced the shutdown of Stadia, marking it as one of the company's more prominent product failures.
2. Why Do I Think Google Stadia Failed?
At first glance, Stadia seemed poised to revolutionize gaming. However, several signs indicated that it was struggling:
Low User Adoption: Despite heavy marketing, Stadia failed to attract a substantial user base.
Limited Game Library: Compared to competitors, Stadia's game selection was sparse.
Technical Issues: Users reported latency and connectivity problems, affecting gameplay.
Confusing Business Model: The pricing and subscription options were not clearly communicated, leading to user confusion.
These factors combined suggest that Stadia did not meet its intended goals, making it a prime example of a failing product.
3. Analyzing the Root Causes of Failure
Let's delve deeper into why Stadia failed, focusing on several key areas:
a) Market Misalignment
Stadia entered a market dominated by established consoles like PlayStation, Xbox, and PC gaming platforms like Steam. These platforms had loyal user bases and extensive game libraries.
Lack of Unique Value Proposition: Stadia didn't offer compelling exclusives or features that differentiated it significantly from competitors.
b) Technical Challenges
Cloud gaming is highly dependent on robust internet infrastructure.
Latency Issues: Even minimal lag can ruin gaming experiences, and many users did not have internet speeds sufficient to support smooth gameplay.
c) Pricing and Business Model
Stadia's pricing model was confusing.
Subscription vs. Ownership: Users had to both subscribe to Stadia Pro and purchase games individually, leading to dissatisfaction.
d) Poor Communication
The marketing messages were not clear.
Overpromising and Underdelivering: Initial promises about game performance and features were not met, eroding trust.
e) Lack of Ecosystem Integration
Unlike other Google products, Stadia didn't integrate well into the broader Google ecosystem.
Missed Opportunities: There was limited use of YouTube integration or leveraging Google's social platforms to enhance the gaming experience.
4. Applying Dieter Rams' 10 Design Principles
Dieter Rams, a legendary industrial designer, formulated ten principles for good design. Let's analyze Stadia through this lens:
1. Innovative
Stadia's Performance: While cloud gaming is innovative, Stadia didn't push the boundaries beyond existing technologies.
2. Useful
User Needs: Stadia didn't effectively address core gamer needs, such as game variety and performance reliability.
3. Aesthetic
User Interface: The UI was functional but lacked the engaging aesthetics found in competitors' platforms.
4. Understandable
Complexity: The confusing pricing model and unclear value proposition made it hard for users to understand the product.
5. Unobtrusive
Integration: Stadia didn't seamlessly integrate into users' existing gaming habits.
6. Honest
Transparency: Overpromising features that weren't delivered hurt Stadia's credibility.
7. Long-lasting
Sustainability: The platform didn't build a lasting community or ecosystem.
8. Thorough Down to the Last Detail
Execution: Technical issues showed a lack of attention to critical details like latency and performance.
9. Environmentally Friendly
Energy Use: While cloud gaming could reduce the need for hardware, energy consumption in data centers is significant.
10. As Little Design as Possible
Simplicity: Stadia's complexity in pricing and usage contradicted the principle of simplicity.
5. Strategies to Revive Google Stadia
As a Product Manager tasked with turning Stadia around, here's how I would approach it:
a) Redefine the Value Proposition
Focus on Unique Features: Leverage Google's strengths like YouTube integration for instant gameplay from trailers or live streams.
Exclusive Content: Invest in developing exclusive games that can attract users.
b) Simplify the Business Model
Clear Pricing: Adopt a straightforward subscription model similar to Netflix, providing access to a library of games.
Free Tier: Introduce a free tier with limited access to attract new users.
c) Improve Technical Performance
Optimize Infrastructure: Work on reducing latency through edge computing and data center optimizations.
Offline Options: Allow for partial downloads or caching to mitigate connectivity issues.
d) Enhance User Experience
Intuitive Interface: Redesign the UI to be more user-friendly and engaging.
Personalization: Use AI to recommend games based on user preferences.
e) Strengthen Ecosystem Integration
Cross-Platform Play: Enable Stadia users to play with friends on other platforms.
Google Services: Integrate with Google Assistant, YouTube, and Google Play for a cohesive experience.
f) Transparent Communication
Manage Expectations: Be honest about capabilities and limitations.
Regular Updates: Keep users informed about improvements and new features.
g) Community Building
Social Features: Implement social sharing, leaderboards, and community events.
Feedback Loops: Create channels for user feedback to inform product development.
h) Apply Dieter Rams' Principles
Innovate: Push technological boundaries by investing in R&D.
Make It Useful: Align the product with actual user needs and desires.
Simplify Design: Reduce complexity in both the product and its business model.
6. Key Takeaways for Aspiring Product Managers
Understand the User: Always align the product with user needs and pain points.
Clear Value Proposition: Ensure that the product's benefits are obvious and compelling.
Simplicity Over Complexity: Simplify design and business models to enhance user understanding and adoption.
Honest Communication: Build trust with users through transparency.
Leverage Strengths: Use existing assets and ecosystems to bolster the product offering.
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Final Thoughts
Analysing failing products like Google Stadia provides invaluable lessons for product managers. It highlights the importance of user-centric design, clear communication, and strategic alignment with market needs.
Up Next
In our next newsletter, we'll explore:
How to Navigate Product Management Interviews
Understanding User Psychology in Product Design
The Role of AI in Modern Product Management
Stay tuned!
