YouTube Mulling Launch of Its Own Online Games –Report
Google‘s (Nasdaq: GOOGL) video-sharing platform, YouTube, is reportedly testing a new product called Playables, aiming to expand its reach into the world of online gaming, according to a report from The Wall Street Journal.
The Journal was able to review an internal email sent to Google employees, inviting them to participate in the testing phase of Playables, which grants users access to a variety of games on mobile and desktop devices. One of the games featured in the test is Stack Bounce, an arcade game where players attempt to break layers of bricks using a bouncing ball.
By venturing into the gaming realm, YouTube intends to augment its popularity among gamers and compete with platforms like Twitch, which is owned by Amazon. The move aligns with CEO Neal Mohan’s strategy to seek new avenues of growth amid a decline in advertising expenditure. With its vast user base, YouTube has the potential to establish a significant presence in the gaming sector.
Playables’ internal testing suggests a cautious approach before public release. The company often relies on employee testing to fine-tune services before unveiling them to the public. A spokesperson for YouTube acknowledged the company’s longstanding interest in gaming but declined to reveal any concrete plans.
“Gaming has long been a focus at YouTube,” they said in a statement. “We’re always experimenting with new features, but have nothing to announce right now.”
YouTube currently enables users to download mobile games through the Google Play app store, where it receives a 30% of revenue from developers earning more than $1 million annually.
The online gaming market has experienced a downturn, coinciding with the broader industry’s slowdown after a period of pandemic-induced growth. In the past year, consumer spending on mobile gaming, including free-to-play games with advertisements, decreased.
Google’s previous attempt to enter the gaming space with Stadia, a cloud-based gaming service, was discontinued due to insufficient user adoption. However, the closure of Stadia provided an opportunity for Google to leverage its technology in other areas, potentially including YouTube.
Information for this story was found via The Wall Street Journal, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
