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Infographic: Is the Console Dying?

Fool.com: ''With all the hype around the Wii U, you're probably wondering if this is a good time to invest in Nintendo (NTDOY), or any gaming company for that matter.

An investor might reason that GameStop (NYSE: GME  ) has much to gain from sales of the Wii U consoles, games and accessories. Then, as the Wii U hype dies down, we can look forward to the release of Sony's (NYSE: SNE  ) PlayStation 4 and Microsoft's new (NASDAQ: MSFT  ) Xbox in late 2013, if the rumors are true.''

SynGamer4894d ago

Gaming-only consoles? Yes, they are a dying breed. Media-focused consoles? Those are definitely on the up-and-up. Microsoft really changed the game with the Xbox 360's integration with a number of MS/Windows applications. Sony, for their part, have also done a decent job at bringing media to the living room.

Really though, we can thank Netflix, Amazon (Prime), and Hulu (Plus) (and a host of other apps/channels) for daily usage of our consoles. I have my PS3 on almost every night for Netflix simply because it's the best version of the app at this time (IMO).

I feel Nintendo's TVii for the Wii U is an interesting concept, but I feel the next wave of mediacentric home devices are going to come from Microsoft and Sony. They'll pack the gaming punch, but we'll be seeing almost everything available if predictions hold true.

Personally, I can't wait :)

decrypt4893d ago

In reality all the console makers are having problems.

Ill start with MS. MS is a huge whale, which heavily relies on its Windows division for its existence. Xbox Division is a very small part of the group. If Windows were to go down, it would take the entire MS corporation with it, Xbox division wont be able to pull the company along. Times have changed, the day and age when people preferred to upgrade PCs every 2-3 years and get a new OS with it are things of a the past. 3-4 year old computers can even today run any application people want to run.

Hence there is a lack of willingness to upgrade PCs and buy new OSes. Instead People prefer to buy tablets and smart phones for most of their daily use like Emailing, Facebook, Twitter, surfing etc. People have even started to prefer to buy Macs. All this change is resulting in lower sales for MS specially for Windows 8. Eventually this will hit there most profitable product the enterprise servers etc. If people migrate to devices like smart phones and tablets there will be no point in having MS servers for large corporates. Hence with Windows tanking, MS will be in trouble, the Xbox division will not be able to do much, it can barely exist on its own.

Sony, This is a company that was worth over 200billion USD back in 2000. Today its worth a mere 10billion usd, its hardly a shadow of what it used to be. Sony has been beaten in just about every electronic segment be it TVs, DVDs, Cameras, Cell phones.

NYSE: SNE has fallen from 60usd a share 5 years back to hardly over 10usd today. Hence Sony isnt doing too well either, infact their position is worse than MS.

Nintendo, They had a lucky run last gen with the Wii gimmick. Wii U seems to not have any multiplat support. Nintendo is a bit of a dark horse at the moment. I am not optimistic on their approach since i dont think the Gimmick will sell this time.

Overall all the console makers seem to be in trouble. None of them really are in a comfortable position.

Psychonaughty4893d ago (Edited 4893d ago )

You are wrong about Microsoft, they make more from Office than Windows and almost half again from server and tools, they would be fine without Windows albeit 1/3 less the company they are now.

Saying that, I predict some choppy years for Microsoft in the future if they continue to keep their eggs in 3 to 4 baskets (although exactly the same could be said for Apple).

Sony are very close to going bankrupt, you are right about them, they are not dominant in any area now and are in fact lagging in most areas.

As successful as Nintendo has been and I have massive respect for them they are totally dependant on the success of their consoles and things aren't exactly going well in Japan's econonomy atm, One failed console generation for them would be the end of them although I hope it doesn't happen.

I agree with your overall sentiment though, this industry is in a precarious position.

1upgamer994892d ago (Edited 4892d ago )

LOL, Wii U Gimmick? Clearly you have not sat on your own favorite chair and spent a few hours with the Wii U. The gamepad is no gimmick. There are very few reviews of the ports to Wii U that in any way say the gamepad makes the Wii U gamepad a gimmick. Hud, Maps, on the fly no pause weapons switch , Making calls on Madden 13 via gamepad, BOPS 2 Multi-player. Far from a gimmick. I have PS3 and PC, but now Wii U is my favorite way to play. Also if you don't like the gamepad Use the Pro-controller, or Wii Remotes. Yeah You can pretty much play any way you want to on Wii U.

pixelsword4890d ago

Ignore decrypt; he has one bubble for a reason.

lol :D

N4g_null4893d ago

It seems gaming media is killing gaming. They don't even talk about gaming as if they can enjoy it as a whole. It seems they have a side they are rooting for and they are invested into it some how. Adults always mess things up.

There is a such a thing as coexsisting. Plus growth of one side does not mean extinction of another. Unless one side over extends enough to put them in jepoardy. Ask sega, even nintendo and now Sony. Yes this can even happen to ms.

dedicatedtogamers4893d ago

If devs focused on making gaming-only consoles...

- Manufacturing prices would be lower (and therefore profitability would go up while retail price would be down)
- Game quality and quantity would inevitably increase as the console makers spend time on making games instead of Youtube integration, TVii, video chatrooms, and movie streaming apps
- Stupid, waste-of-resources features like social integration would no longer be included with games

Unfortunately, "consoles" these days are simply dumbed-down PCs with fewer features. Consoles used to be very different compared to PCs (the games, the controllers, etc) but now they're not.

GreenRanger4893d ago (Edited 4893d ago )

That is the saddest picture i've ever seen.
On topic: The consoles aren't dying, just changing so much that they don't resemble consoles anymore.
If they are not all in one devices, they'll vanish, just like the wrist watch and alarm clocks.
Even TVs have multiple uses these days.

MikeMyers4893d ago

That's because the consumer is also evolving. We have become masters of multi-tasking. Very few people go looking for a cellphone that is about phone call quality. They instead want other features besides just talking to people. Why have a game console that just plays games and a bluray/DVD player that just plays movies and a CD player that just plays music? They are able to integrate them all into one device now. Nintendo always seems to be the last to adapt, riddled with history and living in their own bubble.

Consoles have grown with hard drives, online patches/updates, online multiplayer, apps like Netflix, reward systems, online stores. I expect them to keep evolving, so no, they aren't dying. In fact the gaming market itself has grown because now you have people playing games on many devices. Sure it might have some effect on console sales, but looking at last generation they sold well over 200 million between the 3 consoles.

N4g_null4893d ago

We are not masters of multitasking. We can look at different things at the same time but doing two involved task at the same time tends to make for one dissatisfied task doer. Task organizer would be better than task master. That is a bad cliche.

MikeMyers4893d ago

The Wii U can require you to multi-task. How many times have you seen people watch TV while using their smartphone. That is multi-tasking in the sense I'm talking about. I'm also elaborating on the person above who mentioned how even TV's now have internet enabled features.

Some consumers are no longer satisfied with one product only doing one function. That is why game consoles are nothing like they used to be and why they will continue to be center pieces in your living room that does more than just gaming.

MrKim124893d ago

They ain't dying. Just evolving.

PhoenixRising374893d ago

no, consoles are not dying. they are only becoming more popular. Everyone i know has an xbox or ps3, whether it's my grandparents or teachers, everybody has one now.

MasterCornholio4893d ago

I can agree with some people that handhelds are dying (despite the 3DSs impressive sales) however i honestly dont see the death of consoles anytime soon.

The Wii U might fail though due to its unconventional controller design but so might the 720 and the PS4. We really will not know the answer until the consoles have been in the market for a while.

Show all comments (23)
60°

Final Fantasy X 25th Anniversary Website Launches With New Nomura Artwork and Merchandise

Square Enix launches Final Fantasy X 25th anniversary site, revealing new Nomura art, books, music releases, and merchandise.

Read Full Story >>
twistedvoxel.com
-Foxtrot24d ago

Look I know VIII has its issues and all that but how on earth can the do big anniversary events with new artwork and merchandise for VII, IX and X yet VIII got sweet f*** all.

They could have given it something during its 25th anniversary yet all it got was a single Happy Anniversary post on their social media.

solideagle24d ago

they should know that we are OG fans of VIII as it sold truckload as well. not as much as VII or X. I personally didn't like IX but X and VI are my personal fav.

Shadow Hearts 2 covenant is another game I love. I hope one day someone can make remake, I would be delighted

Relientk7724d ago

Final Fantasy VIII is great and you are always the first to defend it in the comments

70°

Xbox boss: Memory crisis could impact next-gen hardware pricing

Xbox boss Asha Sharma has discussed how component shortages will impact the company's plans for Project Helix.

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gamedeveloper.com
Eonjay25d ago

When does this end? Its killing everyone. Consoles and PC. And for what? AI? The benefits of AI are completely outweighed by the negatives. And the government should have never allowed one company to buy up all the RAM.

Lexreborn225d ago

This kind of proves this is an after thought product, most products like this are in r&d 5 years before they start mass producing. So they typically have the cost of components and things worked out long before assembly starts.

This is an assumption still, but I wouldn’t be surprised if project helix is similar to Scalebound,perfect dark and sod3. They had an idea but no actual execution other than concept stage. Being impacted by the ram shortage likely would also put this device 3-4 years out.

I’m not even sure MS has that endurance with Xbox yet

Fishy Fingers25d ago (Edited 25d ago )

I mean.... what?

We're at a point that Samsung wont even provide their own phone department ram because they can sell it at higher prices to 3rd parties (AI). Its more profitable to sell the ram than make their own devices with it.

You think because R&D starts 5 years ago the 3rd party component manufacturers will honour that price? They'll sell it to whomever is paying the most today, not some gentlemens agreement they made years ago. AI farms will buy more volume at higher prices than any console manufacturer will. It'll be the same for Playstation.

Lexreborn225d ago

Contractual agreements are not the same as “gentlemen” agreements. If you think that they work with their distributors a month before production then their entire business model is trash. They work with companies like nvidia constantly for building the graphics cards they need. They work with companies that build motherboards years in advance. This is what proper business planning does.

They are not buying components on a whim like a consumer. So again, considering the ram isn’t a singular module and is integrated into the motherboard I highly doubt they wouldn’t have a final schematic that they are supposed to be building around.

If they are delaying production another 3 years then it’s obvious again this is an after though project and is just trying to be responsive to their bad execution they had the last 14 years.

It also isn’t far fetched to use their failure to produce first party titles the last 7 years including the highly anticipated games I mentioned all being cancelled. That they would continue to you know… lie

Sitdown25d ago

You don't really know how this works huh?

Profchaos25d ago (Edited 25d ago )

Helix is going to be stupidly expensive

Instead of leaning into smarter upscaling techniques they're brute forcing hardware that will cost them dearly and it remains to be seen if it's genuinely going to provide a meaningful differential

I know in the oc.doace people like to brag about not using frame gen or dlss to get to high on a game but for the majority of players they happily use those technologies without a second thought

That's going to be ps6 vs Helix

Eonjay25d ago

Yeah with FSR 5 they should be able to offer a much cheaper version of Helix.

Eonjay25d ago

While this does seem to be the case, I am encouraged by the statement from Microsoft about wanting to provide affordable options. If this means a Series S style Helix, at least there will be something affordable being offered.

XBManiac24d ago

Series S is what has killed Xbox Series so... Will they dare?

blacktiger25d ago

It's called systematic inflationary. Yes we get it Microsoft, keep raising in the name ofall kinds of stuffs

pwnmaster300025d ago

Honestly if there was thing I learned from this generation is that new consoles arnt day one anymore.
I can wait 1-3 years.

DarXyde25d ago

Another important lesson from this generation: while Nintendo showed us that prices don't necessarily need to ever drop, we've now learned that waiting 1-3 years does carry some risk that prices increase. This generation is just bizarre in all the wrong ways.

LucasRuinedChildhood25d ago (Edited 25d ago )

The factors are largely external. Covid and Russia-Ukraine war causing inflation led to the first price increase in 2022.

Then we get Trump's tariffs increasing hardware prices, AI boom causing a RAM crisis, war on Iran causing a worldwide fuel crisis which impacts the cost of everything.

Gaming doesn't exist in a vacuum. The last few years have been a shitshow and lot of it was definitely avoidable.

DarXyde25d ago

LucasRuinedChildhood,

For sure. No disagreement on the external factors doing a lot of this. Where I have to gently push back however is on two fronts:

1. The pandemic definitely caused some issues: asynchronous development was a big issue and really complicated timelines and affected game quality. At the same time, when it comes to price hikes, it's really difficult to know what was genuine necessity and what was taking consumers for a ride. The pandemic brought about "stag-flation" which was increasing prices and stagnant wages, which was a problem caused by supply chain constraints. There was also "Greed-flation", where companies that were slightly affected or had no issues took advantage of the situation and squeezed everyone citing supply chain issues when there were none.

2. It's definitely true that the tariffs, AI boom, and RAM crisis were all things enabled by tech broligarchs throwing money at this caricature of a world leader, one of them being Satya Nadella. I don't think Sony and Nintendo have contributed much to this problem if at all, but Microsoft's Nadella I feel was instrumental in causing every one of those issues. Microsoft as a company contributed to both candidates (though they gave Harris 4x as much if I recall), but Nadella was all in on letting AI run wild. He paid for unregulated AI, and got a war that's not a war (even though Trump called it that at least five times on television) that screwed up helium access. So for me, I feel that one of the players in the gaming industry is a key architect of these issues, and for that reason I struggle a bit to think of it as "external".

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40°

15 Years Ago, Mortal Kombat (2011) Saved Gaming’s Biggest Fighting Franchise

A brutal reset, a smarter story, and a return to what made it great—Mortal Kombat (2011) revived the series.

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fortressofsolitude.co.za
italiangamer33d ago

"Gaming’s Biggest Fighting Franchise"

Press X to (seriously) doubt.

DarXyde31d ago

Underrated comment. I used to hate that game so much that any time my siblings asked me to play it, I just picked Hom and shut myself down mid-match.

Soy31d ago

And then MK1 killed it again.

DivineHand12531d ago (Edited 31d ago )

15 years went by so fast. I remember playing through the story mode at launch.