What really surprises me is what this indicates about Google.
MS had tons of money they were willing to lose when they fully committed to their long term Xbox plan and they didn't run away from it because they obviously had a plan.
Google is similarly a mega corporation that has tons of money. You would think they wouldn't mind losing money on these studios knowing what they could achieve in the future. To me, this is an indication that they had no long term plan. Either that or the overlords Alphabet got involved and told them to stop?
Microsoft was not new to gaming when they made Xbox at all. They had more than a decade of experience in it. They had the MSX gaming system in Japan in the 80s. You know the system that gave birth to the Metal Gear series. They had years in the PC gaming space with games and controllers and joysticks. They partnered with SEGA on Dreamcast. Which used WinCE and Direct X 6. Every console company that had some success since the 80s had some background in gaming. From Arcades. PC Gaming. Publishing games and/or making chips and hardware for Nintendo/SEGA.
SEGA was in Arcades first.
Sony. Publishing games on SEGA systems and made the sound chip for SNES plus the Nintendo PlayStation CD add on.
MS. MSX. PC Games plus controllers and working with SEGA.
Google? No background. That's why they thought it was a good idea to hire Phil Harrison. Who helped with the disastrous launch of PS3, Xbox One, and Stadia.
Amazon? No background. Why they failed twice already. Have people running the gaming division who never played a game and know nothing about them and don't let women have a voice.
Apple?. There was the Pippin which was a disaster. So there is that...I guess.