Google has a really hard time grokking the games industry, to the point they can hire people from it and just almost totally ignore them. Their ideas on how Android game development should be done were utterly hilarious, and it's only because of a couple of their dev relations people going to ludicrous lengths that it is actually viable at all.

Fundamentally, and ironically, Google likes to offload complexity on to everyone else in their ecosystems, and they got so used to people being willing to jump through hoops to do this for search ads/SEO they are very confused when faced with a more competitive environment.

One reason Google can't make games is they can't conceive of a simple enough platform on which to design and develop one. It would be a far too adventurous constantly moving target of wildly different specifications, and they would insist you support all possible permutations of everything from the start. There are reasons people like targeting games consoles, as it lets you focus on the important bits first.

As someone who has firsthand experience:

A. The same reason Amazon had/has such a hard time.

B. Google lacking the same persistence of Amazon (Consider all the products that are killed)

C. Google's hiring process. (They organizationlly do not know how to hire specialists)

Google made Ingress and Pokémon go (Niantic was part of google before it was spun off).

https://en.wikipedia.org/wiki/Niantic,_Inc.

/me pours one out for Stadia