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Evening Consolidation

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7. Re: Evening Consolidation Apr 5, 2013, 03:05 NewMaxx
 
I think it reflects the reality of the console gaming marketplace. There is little to no growth in that segment, largely due to competition from mobile and other devices. You're also seeing a decent increase in indie titles across the board, which traditionally push away from exclusives and attached IP. That combination means that you want to grab a larger market share and hold on to it while getting more money per user - essentially, specializing a little bit. That is what happens in any industry once it becomes saturated and technology progresses beyond its initial role.

A good comparison would be land lines versus cellular service. If you've seen a land line bill lately, you probably know what I mean: it's usually $70-80 for basic features. The profit margin on it is huge (infrastructure is already in place). Yet there is an entrenched user base which, while dwindling, is willing to pay more to still have what they consider an essential service. This is because the phone companies want to push you towards mobile, and likewise the console companies want to exit the market (take a look at the Xbox division sale rumors for an example).

It is of course still early in the game for talk like that, but it's not unreasonable to suggest that this might be the last true generation of consoles unless some huge changes are made. Yet it's clear that Sony and Microsoft are both tired of the game. It's likely you will have a monopoly on your hands, with realistic competition existing (to carry the analogy further) like magicJack (Ouya might be an example of such a contender). Simply put, the current strategy is an exit strategy, not one of growth, so of course they're going to tie down the user base. They want you hooked on the services, not the games.
 
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    Date Subject Author
  1. Apr 4, 22:42 Re: Evening Consolidation Redmask
>> 7. Apr 5, 03:05  Re: Evening Consolidation NewMaxx
  8. Apr 5, 05:58   Re: Evening Consolidation InBlack
  2. Apr 4, 23:08 Re: Evening Consolidation SirKnight
  3. Apr 4, 23:15  Re: Evening Consolidation nin
  19. Apr 5, 10:19   Re: More Big Picture Details HorrorScope
  20. Apr 5, 13:07    Re: More Big Picture Details Beamer
  4. Apr 4, 23:58 Re: Evening Consolidation NegaDeath
  5. Apr 5, 00:45 Re: Evening Consolidation Bhruic
  6. Apr 5, 02:49  Re: Evening Consolidation Fantaz
  9. Apr 5, 06:03 Re: Evening Consolidation SS
  11. Apr 5, 07:07  Re: Evening Consolidation Julio
  10. Apr 5, 07:07 Re: Evening Consolidation Redmask
  12. Apr 5, 07:48 Re: Evening Consolidation jdreyer
  14. Apr 5, 08:40  Re: Evening Consolidation Verno
  15. Apr 5, 08:57   Re: Evening Consolidation Beamer
  13. Apr 5, 07:55 Re: Evening Consolidation ultrabrite
  16. Apr 5, 09:01 Re: Evening Consolidation wtf_man
  17. Apr 5, 10:05  Re: Evening Consolidation mch
  18. Apr 5, 10:13  Re: Evening Consolidation Verno
  22. Apr 5, 20:22   Re: Evening Consolidation wtf_man
  21. Apr 5, 16:24 Re: Evening Consolidation JediPunisher
  23. Apr 7, 00:47 Re: Evening Consolidation VoodooV


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