Even 10 years ago they've been very explicit about this strategy internally. Management talks about it as "putting more wood behind fewer arrows".
Its somewhat self reinforcing. I didn't try Google Inbox because I was sure it would be axed in a couple years anyway. (And I was right.) The more people make that same assumption, the fewer people try anything new from Google. And the worse any new products' metrics are - which in turn makes google axe more otherwise good products.