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The Future of Consoles?
thebojangles | 6:01 PM on 07.14.2009 8 comments


With the increasing cost of manufacturing consoles (and more and more consoles not becoming actually profitable until they are firmly entrenched in the retail populace), the lifespan of the general console has been increasing steadily over the past few years. Digital distribution has taken center stage in terms of software sales and marketing, with many quality titles (expanded from simple arcade fare to full fledged, high production games), no longer is the population of gaming enthusiasts set to purchase a console every 2-3 years. Consoles are now reaching 5-10 years in lifespan due to the complexity of their inner workings, developers taking longer and longer to push a system to it's limits; thus reducing the need for a faster, more powerful system to do the things they need.

In addition, little separates one console from another anymore. The Wii is a bit of an anomaly in all of this, but the detractors of the console will say that it's nothing but a N64 with added motion detection. Not having owned a Wii myself, I can't say whether one side of the argument is true, but for the sake of argument I'm leaving it out. Sure one console can say they have Blu-ray this, HD that, but in the end they play games. For the most part, those games are identical, and look almost exactly alike. It's come to a point where media is more for the video watching enjoyment of the owner and not linked directly to the quality of the games released.

All of this got me thinking. Are we nearing a future where the likes of Nintendo, Microsoft, and Sony will no longer feel the need for a console war? With the ever increasing costs for R&D of new consoles, the price of new tech to be the "first" at something, and the production values of class A games rising to the point where it doesn't make financial sense to be loyal to a single console (see "The Final Fantasy Debacle"), what is there to win? Microsoft has just finally started making money on 360's sold after a good 2-3 years of production, and Sony still losing money on every PS3 sold (last I heard, please correct me if I'm wrong); where is the money being made in all this?

Microsoft makes it money from it's first party game studio, Xbox Live, and the sales from the Marketplace. Sony makes it money on it's own marketplace. So why even bother with hardware? Let's combine efforts. Let's take the best of the best, smartest of the smart from each of the big three companies and let their knowledge be combined. One console, every 10 years or so. Let each of the companies offer it's own services to those who want it. Microsoft will makes it money from it's own offerings in the Marketplace, Sony will make their money in theirs and Nintendo in theirs as well. First party game studios will continue to push out the hits, and all the companies will get a cut from the cost of the online service.



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5 comments | showing # 1 to 5
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Daxelman's Avatar - Comment posted on 07/14/2009 19:21
Daxelman
Costs are not going up, costs are going down. At a rapid rate as well, because once something hits shelf's, it's already obsolete.

BluRay drives dropped about 100 bucks a few months after the PS3 launch. R&D is also there to make sure things get cheaper to produce, not just make new stuff. The PS3 would still be 600 bucks if the cost to produce one didn't drop.
SamBasinger's Avatar - Comment posted on 07/14/2009 20:05
SamBasinger
This is a VERY interesting point, but you're forgetting one thing. Competition. If it wasn't for competition, no one would strive to be the best. Shallow argument, I know, but it's true. Also, on the subject of competition, ALL THREE companies think they are winning. MS for having the best selling HD Console on the market. Nintendo for having "true next gen controls". And Sony, poor Sony, for thinking it's CONSTANTLY the year of the PS3. Because of this undeserved sense of self righteousness and superiority with all 3 companies, no one would be willing to swallow their pride and "lower their standards to another companies level".


Otherwise, I really wish they would. If anything, just to keep my hardware costs alone under $1000 next cycle.
CelicaCrazed's Avatar - Comment posted on 07/14/2009 20:13
CelicaCrazed
I guess that we need to wait and see how OnLive or whatever its called performs. Taking away the hardware and streaming the game to a household means that we never really need to upgrade our consoles. I know that Sony, Microsoft and Nintendo will always want store presence so I don't know what the middle of the road will look like.
Mike Moran's Avatar - Comment posted on 07/14/2009 21:52
Mike Moran
Sorry, but that's just never going to happen. Companies don't play nice like that. If one person doesn't own them all, they'll compete. That's capitalism. Hell, even when they try to work together it tends to breed competition. Sony and Nintendo tried working together and we got as the Playstation.
Elsa's Avatar - Comment posted on 07/15/2009 11:33
Elsa
I like the competition... it ensures that the MS/Sony/Nintendo and any other entries into the gaming console market keep introducing new features in response to what gamers want. They continue to improve to either catch up with the competition or get ahead of the competition. Just thinking on the vast improvements to the PS3 XMB and PSN... I doubt any of these improvements would have happened if there had not been competitive consoles.

That being said, I do think that the "next next gen" of gaming consoles will be digital distribution and we may eventually even see increased convergence between the PC/TV and gaming console. If that happens, Sony has an edge in Hardware, whereas MS has the edge in Software... it would be interesting to see what would happen then.
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