Ok... wtf?
by Yagami-Iori on Comments
Also, I finally went & put a myspace up for myself. I'm not big on posting a direct link, but I may sometime. If you're actually that curious though, feel free to PM me or w/e inquiring as to mine.
This next-gen just looks screwy and I attribute it all to Microsoft. Microsoft coming into the marketplace has pushed Nintendo down to third (though to be fair, Nintendo didn't make it that hard with how the N64 did). Also, they have forced Sony into a heated hardware race. So now, we have three systems coming out or out already, the X360, PS3, and the Rev (which may make a name change to GO or something else). So why is this a bad thing? Well, let's take a closer look at where this all leaves the three big console producers in the market next generation (just sticking to consoles here).
-Nintendo-
Being already last, the company lovingly referred to as the Big N has decided to go in a different direction from the competition; release a weaker system with new capabilities and a huge library of ready to download classics. While this low cost model may seem to be good for this gen, there is a big problem with this level of power; the system is so much weaker than the competition's models that to develop multiplatform games for it would require so much in extra development time to make the game weaker graphically that most studios won't bother.
Also, this strategy is setting Nintendo up for a BIG fall in the generation following the 360/PS3/Rev gen. Their new innovative technologies, which they spend millions of dollars and years of investing in will quickly be ripped apart, analyzed, and reworked into the competitions' systems for the following gen at a much lower cost for the competition. This will, of course, screw over Nintendo in the new gaming front, due to their now standard equipment being possessed by everyone, while their system contains MUCH lower power. Could it be that Nintendo has essentially brought on its own destruction?
-Sony-
Sony is in company wide debt. Not by a small number, either; we’re talking over 6 billion dollars USD. To repeat, SIX BILLION DOLLARS! There are decent sized countries with smaller amounts of built up debt. Now, The nice thing for Sony is, they are a company so expansive that they have plenty of revenue streams to finance most of their ventures, but with that kind of debt, they can only go for so long before they have to do something about it.
Also, Sony has become allowed themselves to become completely entangled in a forward push on hardware (not to say this is completely Microsoft’s part, Sony does want to push out Blu-Ray, their TVs, etc.) that has caused them to make a system that will be expensive for the company to produce & sell to consumers. The cost limit is so high that to even price it competitively (assuming it cost 800 to make, 500 price point), that they will need to move a LOT of software to even break even. On top of all that, anyone producing these games now has to use the Blu-Ray disc, which increases game cost, reducing the margin earned per game. This will only come to further hurt Sony financially. Could this strain be the straw that finally breaks their back?
-Microsoft-
Microsoft has managed to do quite the feat this past generation; they have come from out of absolutely no where (well, not completely) with a new console and have managed to rip away the second place slot in the marketplace from Nintendo. Though, this is not a true victory. While Xbox has put up some great numbers in the United States and European sectors, the numbers from the Japanese sector have been laughable, at best, moving a mere 2 million (actually a little less, and thanks to the X360 release, Xbox will probably never even hit 2 million in the Land of the Rising Sun). This second place victory also isn’t much to brag about when you consider that the system is only over GCN in sales by a couple million worldwide and FAR behind the PS2 sales numbers.
Also, while Microsoft has managed to make quite the showing on its first time on the console market, they haven’t done a decent showing in profits for the system. In fact, they have yet to turn a profit in the Xbox division of Microsoft for even one quarter. Seeing as how Microsoft has insisted on trying to push up the releases of new consoles to four years, this also creates a problem of always sinking cost to be researching & developing the next system. This means that Microsoft will probably just keep assuming losses on the Xbox line for a good amount of time. This bring up the question, just how long will shareholders deal with Microsoft throwing away money on what has never been more than a drain on the company?
Now granted, this piece does take the some of the bad parts of what may be to come into consideration, but if any one of these come to fruition, then we could very well see a big shake-up in the video game console industry. All we can do now though, is wait & see.
Log in to comment