Why console gaming is dying - CNN

[RCM]

Nintendo can't be happy about the image they went with.

SOURCE: http://www.cnn.com/2012/11/09/tech/gaming-gadgets/console-gaming-dead/index.html?hpt=hp_c3

If console gaming were a first-person shooter, it would be taking heavy fire right now. A red hue would envelop the viewable screen from all sides, an ominous sign of spilled blood.

Or worse, near-death.

Despite this, Nintendo will release its new Wii U console on November 18, ushering in the eighth and possibly last generation of traditional home consoles as we know them.

Consider this: Dedicated gaming sales — including living-room consoles and handhelds — are in the midst of a four-year tailspin. You might say that's because of a bad economy, but then you'd have to explain why movie revenue and cable TV subscriptions have largely stayed the same.

Or why music sales, gutted by online streaming and piracy, have held up better than slumping sales of console games. Or why the popularity of social, mobile and PC games have skyrocketed to unthinkable heights.
Hands on with the next Nintendo Wii

The problem seems to be isolated to dedicated video games. Video game industry sales in the United States, including game discs, consoles and accessories, were down 24% in September when compared with the same period last year. Many experts believe these decreases in profits, the rise of casual and social gaming and waning consumer interest are affecting makers of the three big living-room consoles: Microsoft's Xbox 360, Sony's PlayStation 3 and Nintendo's Wii.

So is this it then? Is the death of dedicated gaming upon us? In a word, no.

"I bristle when people suggest as much," says Adrian Crook, a game design consultant. "Consoles will grow again and will never go away."

But today's dedicated gaming business is arguably in its most tumultuous period since the 1983 gaming collapse. It's nowhere near ruin yet, thanks to big franchises like "Call of Duty," "Madden," and a select few mainstream console games. But the console's influence is waning, and there's uncertainty about its future.

Here's where the shots at console gaming are coming from, and how the industry might dodge and counter them.

Trojan horses

Since the '80s, console makers have dreamed of using their "dedicated gaming machines" as Trojan horses to further control the living room with a single, proprietary device.

That time has come. Gaming consoles have transformed into entertainment hubs for people to stream movies or YouTube videos. So much, in fact, that gaming consoles no longer are being used primarily for gaming. In fact, "40% of all Xbox activity now is non-game," Microsoft boasts. Amazon and Netflix streaming accounts for most of that, as they do for Wii and PS3.

Combined, game consoles account for half of all Netflix users. This is great news for the movie industry. Not so great for console gaming's bottom line, especially since the industry largely subsidizes consoles now.
I'd sooner pay nothing up front and $5 to $10 later than plunk down $60 on a game and hope I like it.
Adrian Crook, game design consultant

In other words, a console isn't helping the gaming industry if it's mainly being used to stream Netflix movies.

Not only that, but gamers' tastes have evolved to include quick, bite-size gaming sessions -- something consoles have never been good at. (Gamers must go to the living room, wait for the console to power on, load the game from the main menu, wait for it to boot.) It's much slower than tapping an icon on the smartphone you already carry in your pocket.

"Most people who liked console games in the past still do today," says Alex Hutchinson, creative director of Ubisoft, "but they're also looking for a wider spread of experiences. I want some games I can play quickly after work or while the kids are asleep and have a short satisfying experience."

As the number of gaming scenarios has increased, so, too, has the number of diehard gamers, says market researcher DFC Intelligence.

"Gamers have not only increased in number, but they are playing on multiple platforms now," says analyst David Cole. "Fewer enthusiasts describe themselves in a single camp such as 'I love Nintendo and hate Sony and Microsoft' or vice versa."

If enthusiasm for a single dedicated machine has waned, however — or at least has been spread thin — then the machine that demands the most attention will invariably suffer. That machine is the console — the one you hold dear to your heart, but probably reach for less than you used to, whether you like to admit it or not.

Creative stagnation?

When it's not taking a backseat to more convenient app gaming, some say the console has stagnated creatively.

"You would think that XBLA (Xbox Live Arcade), PSN (PlayStation Network), and the rise of 'free to play' would have opened a door to smaller games that can take more risks creatively, but right now they're just cut-down versions of box-product games, or retreads of games I played on the SNES (Super Nintendo Entertainment System)," says Hutchinson, referring to the online gaming networks offered by Microsoft and Sony.

"I don't honestly think that someone who didn't want a 2-D platformer 20 years ago is going to wake up today and buy it on XBLA."
We need to offer more experiences that are understandable to people's real lives.
Alex Hutchinson of Ubisoft

In addition, even big-box games have lost some of their visual allure in recent years. What were once graphical leaps in previous generations have now become bunny hops, at least to the average eye.

"People aren't as motivated by cutting-edge graphics as they once were," says Paul Neurath, creative director at Zynga, makers of "FarmVille," "Mafia Wars" and other social games on Facebook.

"Gamers that care intensely about graphics will continue to do so, but I think there are fewer now than there were in the past," he says. "Big leaps in graphics no longer exist. Unless there's some futuristic holographic display or direct brain implement we don't know about, it's hard to get a lot better."

Cole, the gaming analyst, agrees.

"Cutting-edge graphics in the past amounted to nothing more than killer CGI videos that added nothing to gameplay," he said. "That's a problem for an industry that up until recently prided itself on "buy this console because the games look a lot better than the ones you currently own.'"

In that sense, next-generation is no longer "next." We've arrived. Looking back, NES was certainly a step above Atari and imprecise joysticks. SNES and Genesis offered a huge leap in affordable home graphics. PlayStation and N64 immersed players into 3-D worlds replete with camera control. PlayStation 2 and Xbox overcame polygons in favor of rounded and non-jaggy looks. All of these were improvements upon previous generations of gaming systems.

But this current generation of consoles? With the exception of the early Wii years, they've largely offered better-looking versions of games we've already played. There have been a lot of great games to be sure, but fewer must-haves — the kind that truly take the medium into uncharted territory.

Rise of cheap, social gaming

On the other hand, cheap, bite-size games such as "Angry Birds" and "Plants vs. Zombies" have thrived in recent years, ensnaring new players with novel gameplay.

"Virtually all of my clients are in social and mobile sectors, which have totally exploded in the last few years and continue unabated today," says Crook, who previously worked as a console designer.

As such, the demand for games has grown. "It's not so much that gamer interests have changed since the last generation, but that a whole group of new players have started playing games," says Zynga's Neurath. "These people would never have played last-generation console games. They're more into it for the social aspect."

Console makers so far have been ill-equipped to meet this demand, given their lucrative, 30-year-old model of selling games for $50-$60.
The Wii U\'s handheld controller displays a game during a presentation by developers Ubisoft.
The Wii U's handheld controller displays a game during a presentation by developers Ubisoft.

This partly explains why Nintendo, after five years of phenomenal Wii growth, is slumping. Industry experts say they're not in a position to meet the demands of most new social gamers.

We'll soon find out whether the Wii U can revive Nintendo's fortunes. The console's big new feature is a 6.2-inch touchscreen GamePad controller that interacts in creative new ways with the gamers' TV. Wii U players can play together, with one person using a TV screen and the other using the GamePad. A single player also can access additional content on the GamePad that enhances the game on the big screen.

Nintendo declined to comment for this story.

In a struggling economy, consoles also have fallen victim to the cut-rate pricing of games -- something consumers are exceedingly demanding but consoles have yet to offer.

In what has become a successful business model, many developers give away their games for free, then charge players later for status upgrades or gameplay perks.

"Say what you want about freemium, 'nickel and diming' of players, but I'd sooner pay nothing up front and $5 to $10 later than plunk down $60 on a game and hope I like it," says Crook.

Ubisoft's Hutchinson refers to it as a rising "fear" among console gamers. With so many deals to be had elsewhere, a lot of console gamers are making fewer full-price purchases than before.

"The free-to-play model has certainly impacted the industry," agrees Zynga's Neurath.

On top of that, 99¢ iPhone and iPad games are also taking a toll on the perceived value of dedicated gaming systems. Even PC games go on sale for as little as $5-$20 on occasion, a trend that has breathed new life into PC gaming and changed how some of the most ardent gamers value games.

"The business model for a five-year life cycle isn't working for Sony and Microsoft," says Cole. "They spend billions to R&D and market these new systems, they sell them at a loss for the first few years and then they don't really have the software business to make up the cost. They are better getting out of the business entirely rather than go after a five-year life cycle."

How console makers can fight back

In wake of all these changes, what's a console maker to do? What might reinvigorate interest in living-room and dedicated handheld gaming?

A first step would be fresher consoles themselves. The Xbox 360 is 7 years old, while the Wii and the PlayStation 3 are both 6.

Newer motion-controlled gaming systems such as Microsoft's Kinect and Sony's Move, which let players control in-game avatars by moving their arms and legs, have helped sustain interest. But experts say more upgrades are needed.

"New consoles would help, and the rumblings have already started at Microsoft and Sony," Hutchinson says. As if reminded by the lackluster sales of the handheld 3DS and PS Vita gaming systems, he adds, "But I don't know that we really need a new hardware cycle at this point from a creative standpoint."

Zynga's Neurath, who's worked with consoles and PCs since the 8-bit days, says console makers would do well to act more like nontraditional platforms. A new console dubbed Ouya will launch next year with free-to-play games and a $99 launch price, but keep the focus on what its manufacturer calls "TV gaming."

Crook believes there is still plenty of time for traditional console makers to correct their downward trend.

"There will always be a big market for core game systems," he says. "It all comes down to how consoles can get back to taking creative risks again, and what the platforms can do to broaden their markets and offer innovative means of interaction."

Ubisoft's Hutchinson wants console games to deliver more meaningful experiences.

"Games need to explain to players why they made certain artistic decisions, what mood they're setting with their lighting and color choices, and less about the technical features," he says. "We need to offer more experiences that are understandable to people's real lives, either in terms of mechanics or narrative, and attract people who don't read fantasy novels or watch the SyFy channel. Our mechanics are often not the barrier, but our content sometimes is."

The good news for the industry, and for gamers, is that video games in their broadest sense are most definitely here to stay. It's just that the way we access, control and define them has rapidly evolved. Despite the weakening sales of consoles and console games, the growth of mobile, social and PC-based games means that total spending on gaming is actually on the rise.

"Inviting more people to the fun and wonderment of games isn't just good for social games, it's good for the entire industry," says Neurath.

It will likely take at least one more console cycle to gauge the long-term sustainability of dedicated gaming devices, experts say. Their ultimate survival all depends on how well console makers adapt to evolving business models and changing consumer tastes.

[Frankie_Says_Relax]

Good read, lots of sound arguments.

I can only assume that you posted the article in its entirety so that the more argument-prone members of this community don't have to navigate to a separate site to copy/paste or multi-quote the article when they want to pick it apart and offer up their personal take on the current state and future of the industry. ;)

http://newnation.sg/wp-content/uploads/eat-popcorn-3D.gif

[RCM]

I can only assume that you posted the article in its entirety so that the more argument-prone members of this community don't have to navigate to a separate site to copy/paste or multi-quote the article when they want to pick it apart and offer up their personal take on the current state and future of the industry. ;)

http://newnation.sg/wp-content/uploads/eat-popcorn-3D.gif

That hadn't occurred to me but i'm happy to help.

[buzz_n64]

The five year life cycle has always worked. Now that the greedy console makers want to keep their aging systems afloat for over 7 years, they wonder why sales are going down. I don't know, maybe because gamers are getting bored. The dedicated console isn't dying, but some of the creativity aside from the gimmicks employed on occasion by Nintendo has waned.

[IHatedSega]

This kind of reminds me of the complaints about the E3 press conferences, they focus on hardware and gimmicks, and not as much on great games. The ideas people were saying in the article about getting away from geeks is stupid to me, they want to do real life stuff with games and make it relate to average people, what does that even mean?

[Bojay1997]

The five year life cycle has always worked. Now that the greedy console makers want to keep their aging systems afloat for over 7 years, they wonder why sales are going down. I don't know, maybe because gamers are getting bored. The dedicated console isn't dying, but some of the creativity aside from the gimmicks employed on occasion by Nintendo has waned.

Ever hear of something called the economy? If console manufacturers could sell us new consoles every year they would do it, but many people haven't exactly had tons of disposable income in the past few years and that's why the console cycle was stretched as well as the fact that it took a long time for Sony and Microsoft to start making money on the hardware this generation. A great game is a great game and while new technology and control alternatives can improve some aspects of the experience, I doubt the cause of the slowdown has been gamer boredom.

[Edmond Dantes]

SOURCE: http://www.cnn.com/2012/11/09/tech/gaming-gadgets/console-gaming-dead/index.html?hpt=hp_c3

<snip>

Not only that, but gamers' tastes have evolved to include quick, bite-size gaming sessions -- something consoles have never been good at. (Gamers must go to the living room, wait for the console to power on, load the game from the main menu, wait for it to boot.) It's much slower than tapping an icon on the smartphone you already carry in your pocket.

.... Credibility = shot, right here.

[Trebuken]

Current gen consoles saw a spike in sales with the launches of the Move and the Kinect, which have largely been ignored since.

Also, many developers have migrated to developing for next gen consoles with the lengthy development time of games these days.

There are plenty of great games still launching, but they are almost all sequels, and perhaps we are seeing some franchise fatigue. In previous years with a Halo launch it was all over the news -- this year I saw nothing.

The Wii-U launches in a week and the hype seems very subdued. A new console launch Mario game should be a big deal with a console launch, but instead it's just another Mario.

Are people buying tablets instead?

[IHatedSega]

The Wii-U launches in a week and the hype seems very subdued. A new console launch Mario game should be a big deal with a console launch, but instead it's just another Mario.

Im not a kid, but I bet there are a lot that are hyped, maybe moms too, and preorders were through the roof apparently. Its a new game console so of course theres hype, but for this system the people who are most excited I bet dont log onto forums in droves talking about how much they want it. People have told me when I complain about the Wii U name that Nintendo would be fools if they threw out the successful brand name, but shouldnt, you know, NINTENDO be the bigger name? To people who love the Wii they love Wii casual games, Mario is a Nintendo character and not a big deal to casual game lovers.

Halo 4 though I bet its because another company is making it.

[Bojay1997]

Current gen consoles saw a spike in sales with the launches of the Move and the Kinect, which have largely been ignored since.

Also, many developers have migrated to developing for next gen consoles with the lengthy development time of games these days.

There are plenty of great games still launching, but they are almost all sequels, and perhaps we are seeing some franchise fatigue. In previous years with a Halo launch it was all over the news -- this year I saw nothing.

The Wii-U launches in a week and the hype seems very subdued. A new console launch Mario game should be a big deal with a console launch, but instead it's just another Mario.

Are people buying tablets instead?

Are you serious? Halo 4 was the biggest selling game in the series at launch.

http://www.brandchannel.com/home/post/2012/11/09/Halo-4-Record-Breaking-110912.aspx

Retail stores like Gamestop and Best Buy did midnight openings and even my parents were asking me what it was because they had seen tons of TV commercials for it. The WiiU is completely sold out of pre-orders everywhere. People are paying ridiculous amounts on Ebay and Craigslist for units that haven't even made it into the hands of the sellers yet and I have seen dozens of airings of the commercials since they started on November 1st. Sure, it's not Wii proportion hype just yet, but really the Wii wasn't super hyped until a week or two after launch when people realized they wanted one and it was sold out everywhere and wouldn't be available for a really long time unless you really worked to find one.

While I have no doubt that tablets and other media are cutting into video game sales, I don't think anyone can claim that good AAA titles are having trouble selling and I guarantee you will see lines everywhere for the WiiU on November 18th.

[Rob2600]

Ever hear of something called the economy? If console manufacturers could sell us new consoles every year they would do it, but many people haven't exactly had tons of disposable income in the past few years

Apple does it every year with $200+ iPhones and $500+ iPads.

[razeak]

Apple does it every year with $200+ iPhones and $500+ iPads.

You win.


Just think of the Android phone commercial with the people standing in line for the new iphone and the one guy is talking about his mind being blown because of the placement of the headphone jack. I think that illustrates how well making minor changes or upgrades can allow a company to sell virtually the same product over and over in such a short time frame.

Hmmmm...it actually gives me a fresh perspective to look at the Gamecube/Wii/WiiU lifecycle. Maybe Nintendo will accomplish something similar over a longer time frame than what Apple has done. Heck, look at the DS line and all the different iterations. I'm waiting on a 7 inch tablet DS at this point(or the 90 bajillion Mario games).

If this article has any traction, we might be looking back in a few years and thinking Nintendo was genius not to spend extra millions on top of the line hardware(though I think the system will prove to be plenty powerful).

[kedawa]

Consoles are dead to me thanks to extraneous control gimmicks and UI's littered with advertising.
I'll be rocking cartridges and digital controllers 'til my bones turn to dust.

[CelticJobber]

The five year life cycle has always worked. Now that the greedy console makers want to keep their aging systems afloat for over 7 years, they wonder why sales are going down. I don't know, maybe because gamers are getting bored. The dedicated console isn't dying, but some of the creativity aside from the gimmicks employed on occasion by Nintendo has waned.

If anything, I think they're being alot less greedy by extending the life of their consoles. Not everybody wants a new system every 5 years. Hell, the graphical leap from PS2 to PS3 wasn't that big of a deal (IMO). And I'm perfectly happy with the graphics of current-gen systems.

[Collector_Gaming]

You win.


Just think of the Android phone commercial with the people standing in line for the new iphone and the one guy is talking about his mind being blown because of the placement of the headphone jack. I think that illustrates how well making minor changes or upgrades can allow a company to sell virtually the same product over and over in such a short time frame.

Hmmmm...it actually gives me a fresh perspective to look at the Gamecube/Wii/WiiU lifecycle. Maybe Nintendo will accomplish something similar over a longer time frame than what Apple has done. Heck, look at the DS line and all the different iterations. I'm waiting on a 7 inch tablet DS at this point(or the 90 bajillion Mario games).

If this article has any traction, we might be looking back in a few years and thinking Nintendo was genius not to spend extra millions on top of the line hardware(though I think the system will prove to be plenty powerful).

Thats not entirely true..

What sells it is the celeb's we look up to. Most of them rock Iphones so therefore their hardcore fans maybe inspired to go out and buy a iphone just like their favorite celeb.

Think back during the PS1 days.... Every rapper bought a PS1 and would play madden on it or something like that. Kids that followed those guys would do the same thing as a trend. I am not saying this is what caused the PS1 to surge over the N64 and Sega Saturn... But i think it most certainly helped.

[duffmanth]

These articles are so dumb, console gaming isn't going anywhere any time soon. The console market has its up's and downs like any other market that has been around for any substantial amount of time. The console market might seem like it's kind of stagnant now because we're in a transition period where one console generation is ending and another one is beginning, and I think there is a certain lack of creativity with console games now as well. I think the traditional business model of shipping out a console for $300-400 and charging $60/game might be fading away though? I think traditional, full fledged console games will still be around for a long time to come, but there just might be fewer of them as more studios focus on freemium, mobile, and social games.

[Bojay1997]

Thats not entirely true..

What sells it is the celeb's we look up to. Most of them rock Iphones so therefore their hardcore fans maybe inspired to go out and buy a iphone just like their favorite celeb.

Think back during the PS1 days.... Every rapper bought a PS1 and would play madden on it or something like that. Kids that followed those guys would do the same thing as a trend. I am not saying this is what caused the PS1 to surge over the N64 and Sega Saturn... But i think it most certainly helped.

It's hard to tell, but you're being sarcastic, right?

[j_factor]

Ever hear of something called the economy? If console manufacturers could sell us new consoles every year they would do it, but many people haven't exactly had tons of disposable income in the past few years and that's why the console cycle was stretched as well as the fact that it took a long time for Sony and Microsoft to start making money on the hardware this generation. A great game is a great game and while new technology and control alternatives can improve some aspects of the experience, I doubt the cause of the slowdown has been gamer boredom.

The article sites "total industry sales" declining. Doesn't total industry sales include consoles? And aren't they selling a lot less consoles due to the fact that there haven't been any new ones in a long time? Not 'boredom' so much as market exhaustion. There simply aren't as many potential new customers left.

[Griking]

The five year life cycle has always worked. Now that the greedy console makers want to keep their aging systems afloat for over 7 years, they wonder why sales are going down. I don't know, maybe because gamers are getting bored. The dedicated console isn't dying, but some of the creativity aside from the gimmicks employed on occasion by Nintendo has waned.

I disagree. I haven't stopped purchasing console games because I felt that the graphics stunk and I needed a better console to play them on. I stopped purchasing new console games primarily because they priced themselves out of my consideration. I rarely (if ever) will pay $60 for a new game and that seems to be the base price for most of them. I used to wait until a new game has been out for a few months and then pick it up used or wait for a platinum edition but in all honestly I've found that I've been more likely to just lose interest in that time and purchase cheaper alternatives from Steam to occupy my time.

Of course it also doesn't help that I have absolutely no interest at all in any form of military shooters or games with anything resembling a "space marine". The same goes with sports games. Unfortunately this seems to represent 50% of the releases in today's console gaming environment.

Whatever. In another few weeks every developer and retailer will sell their me too copy cat holiday blockbusters for a "HUGE SAVINGS" at maybe $40-$50 each instead of $60. Meanwhile I'll probably purchase 10 games from Steam for that same price.

Oh, and anyone that doesn't believe that mobile gaming on cell phones and tablets will kill off your handheld consoles are delusional. The only ones that will be purchasing the DS and Vitas will be the hardcore gamers. Everyone else will be content with playing games on the device that they're already carrying in their pocket everywhere they go and don't want to bother carrying a second device. Now maybe if Nintendo designed a DS cell phone...

[LaughingMAN.S9]

I disagree. I haven't stopped purchasing console games because I felt that the graphics stunk and I needed a better console to play them on. I stopped purchasing new console games primarily because they priced themselves out of my consideration. I rarely (if ever) will pay $60 for a new game and that seems to be the base price for most of them. I used to wait until a new game has been out for a few months and then pick it up used or wait for a platinum edition but in all honestly I've found that I've been more likely to just lose interest in that time and purchase cheaper alternatives from Steam to occupy my time.

Of course it also doesn't help that I have absolutely no interest at all in any form of military shooters or games with anything resembling a "space marine". The same goes with sports games. Unfortunately this seems to represent 50% of the releases in today's console gaming environment.

Whatever. In another few weeks every developer and retailer will sell their me too copy cat holiday blockbusters for a "HUGE SAVINGS" at maybe $40-$50 each instead of $60. Meanwhile I'll probably purchase 10 games from Steam for that same price.

Oh, and anyone that doesn't believe that mobile gaming on cell phones and tablets will kill off your handheld consoles are delusional. The only ones that will be purchasing the DS and Vitas will be the hardcore gamers. Everyone else will be content with playing games on the device that they're already carrying in their pocket everywhere they go and don't want to bother carrying a second device. Now maybe if Nintendo designed a DS cell phone...


this is the only sentiment i've ever agreed with when it came to consoles or casual iphone/android games overtaking established gaming machines. within 1 generation, 2 max, iphone like devices will make handheld gaming devices redundant, graphically they're not that far behind, controls just have to catch up.


im not trying to say casual games will dominate the full mobile gaming spectrum, more like eventually hardcore type games will find their way onto your appstore and suddenly, owning a vita or 3ds wont seem like its worth it anymore

[Gamevet]

Apple does it every year with $200+ iPhones and $500+ iPads.

Yeah, but you're talking about social networking vs. gaming. Social networking is much larger than gaming.

My wife doesn't play games at all, but she's always on her iphone checking out facebook and email.

[buzz_n64]

I think the market is over saturated with shooters and sports games like fighting games were in the 90's. Hopefully interest will dissipate over the next generation. Late 70's/Early 80's had space shooters, 80's had platformers, 90's fighting games, 2000's fps games. This has currently been the longest trend in genres and consoles, so no wonder everyone already has a system and Call it Doody 15 or whatever is the years supposed new innovative fps game.

[Gameguy]

Yeah, but you're talking about social networking vs. gaming. Social networking is much larger than gaming.

My wife doesn't play games at all, but she's always on her iphone checking out facebook and email.
I'm pretty sure that was his point. It wasn't that people couldn't afford buying new consoles or games to upgrade technology, it's that they'd rather spend their money on something else other than video games.

[Gamevet]

I'm pretty sure that was his point. It wasn't that people couldn't afford buying new consoles or games to upgrade technology, it's that they'd rather spend their money on something else other than video games.

I understand what his point was, but trying to sell an expensive item to a group that might have a couple of million early adopters, is a bigger gamble than releasing an item that may have an early adopter size in the 10s of millions. There's like a billion Facebook users alone and everyone has a cell phone. It's easier for someone to justify a $300 purchase for an item that they'll use everyday. It's a little harder to convince someone to spend that much on something they may only have a casual interest in.

[chilimac]

This article claims the solution is to casualize gaming even further. In my opinion, that is the opposite of what needs to be done to save console gaming.

The problem with the industry is that it has shifted its focus of making games that appeal to gamers, to those that appeal to casuals; and they've done so by removing the challenge from video games and then enhancing the graphics and story so that video games play more like interactive films.

This shift from gameplay to graphics being the selling point of console games is where the problem lies.

The decline of video game sales can be attributed to two things... 1) Hardcore gamers are buying fewer games because there a fewer games being made that appeal to them, and 2) Casual gamers are getting bored with the outdated graphics of current consoles. Most people would say that the solution is simple, just release new consoles. But the problem with that is, in order for the next-gen of consoles to be so impressive graphically that they'll make old experiences feel fresh again and reinvigorate casual gamer interest, they'll have to be much more powerful than usual, which will only make them unaffordable for the mass market. So what will happen instead is console manufacturers will make their consoles less powerful and more affordable, which will only lead to the casual gamer losing further interest in gaming.

Bottom Line: The graphics well is drying up. The game industry will have to make a shift back to gameplay-driven games that are designed for real gamers, or else the industry will collapse.

[The 1 2 P]

How can the article say this:


Consider this: Dedicated gaming sales — including living-room consoles and handhelds — are in the midst of a four-year tailspin. You might say that's because of a bad economy, but then you'd have to explain why movie revenue and cable TV subscriptions have largely stayed the same.

...while completely ignoring video game digital sales but in the very next article say this:


Or why music sales, gutted by online streaming and piracy, have held up better than slumping sales of console games. Or why the popularity of social, mobile and PC games have skyrocketed to unthinkable heights.

I'm not saying that NPD monthly brick and morter video game sales haven't declined over the last few years but once you add in all the digital sales that have taken place in that time frame on consoles, handhelds and pc(including Walmart sales which have only just been added to monthly video game sales this year) and you have a completely different picture. Add to that the fact of the industry being into the well documented transitional period of ending one gen and starting up a new one and you'll see that the industry isn't doing nearly as bad as what some of the naysayers think. But of course theres always room for improvement.

On a final note, if PC gaming is still alive and well(the death of PC gaming has always been a popular topic over the last decade) then console gaming will NEVER die. It will just continue to evolve more and start to include even more multi media interfaces in the near future.

[Gameguy]

I understand what his point was, but trying to sell an expensive item to a group that might have a couple of million early adopters, is a bigger gamble than releasing an item that may have an early adopter size in the 10s of millions. There's like a billion Facebook users alone and everyone has a cell phone. It's easier for someone to justify a $300 purchase for an item that they'll use everyday. It's a little harder to convince someone to spend that much on something they may only have a casual interest in.
I'm not sure why you have the word "but" in there, you're just posting examples of why Rob2600 is correct with what he said. That word is used to introduce something contrasting with what has already been mentioned, not to agree with it.



This article claims the solution is to casualize gaming even further. In my opinion, that is the opposite of what needs to be done to save console gaming.

The problem with the industry is that it has shifted its focus of making games that appeal to gamers, to those that appeal to casuals; and they've done so by removing the challenge from video games and then enhancing the graphics and story so that video games play more like interactive films.

This shift from gameplay to graphics being the selling point of console games is where the problem lies.

The decline of video game sales can be attributed to two things... 1) Hardcore gamers are buying fewer games because there a fewer games being made that appeal to them, and 2) Casual gamers are getting bored with the outdated graphics of current consoles. Most people would say that the solution is simple, just release new consoles. But the problem with that is, in order for the next-gen of consoles to be so impressive graphically that they'll make old experiences feel fresh again and reinvigorate casual gamer interest, they'll have to be much more powerful than usual, which will only make them unaffordable for the mass market. So what will happen instead is console manufacturers will make their consoles less powerful and more affordable, which will only lead to the casual gamer losing further interest in gaming.

Bottom Line: The graphics well is drying up. The game industry will have to make a shift back to gameplay-driven games that are designed for real gamers, or else the industry will collapse.
I'm not sure if the problem is really with so called casual games, they're basically like Atari 2600 games that were made 30 years ago. How many of those games were deep for serious players? They were mostly just quick games to play by yourself for 20 minutes if you have nothing better to do or with a friend to kill some time. At that time consoles were aimed at general consumers, not a niche market. Maybe more people are wanting to go back to those types of games, if so that shouldn't be something to just ignore.

I'm not saying that's what I want with new games. For me personally there's really not that much I want with games that haven't already been made in some form, even if I haven't played them yet they're already out there. Strictly for business they need to switch focus on the younger crowd again. Keep making new games for children, 5 years later when they've moved onto other things release a new console for the next generation of kids who would be unfamiliar with previous games. Parents mostly just buy current things available in stores rather than buy older things, other than to just save money by buying older products used. Older teens and adults have already played most of these games, why would they want to play the same things again for full price? There have always been games focused on older audiences, but this has always been a niche market with a lower demand that worked because fewer developers were making games for this market. Now this seems to be the main focus of almost all developers, I just don't see how a niche market can support a whole major industry. While I know most players are in their 30's(I think I remember this correctly) I'm assuming most of these people are playing older consoles rather than focusing mostly on current ones, and mostly buy games used rather than new at full price.

[kedawa]

Every serious gamer has a backlog of games, and the ones that are smart have the patience to wait for price drops.
I think it's getting harder to get blockbuster sales with anything that isn't on par with CoD or Halo in terms of marketing and fanbase.

[Gamevet]

I'm not sure why you have the word "but" in there, you're just posting examples of why Rob2600 is correct with what he said. That word is used to introduce something contrasting with what has already been mentioned, not to agree with it.


Bojay said that in this economy it's hard to sell new gaming hardware every year. Rob2600 pointed out that Apple can sell the latest iphone and ipad at those prices. So yes, I agree with Rob2600 that Apple is able to sell those devices, even though the economy isn't that great. A lot of people don't see the purchase of an iphone or ipad as just a purchase with expendable income; they see the purchase as more of a necessity, since it's a part of their everyday life. Purchasing a game console, a flat panel television, or a new camera isn't looked at in the same manner. Purchasing an iphone or ipad is now considered on par with having a phone in your home, everyone needs that sort of device to communicate with the outside world, and function within it. I know that not having my iphone for a day would really compromise not only my ability to keep in touch with people, it would effect my job as well. I can't say the same for something like a game console or television.

[Edmond Dantes]

This article claims the solution is to casualize gaming even further. In my opinion, that is the opposite of what needs to be done to save console gaming.

As I implied earlier, my problem with this line of thinking is the notion that "casual gaming" is a recent trend. For christmas' sakes, the gaming industry was BUILT on casual games--Donkey Kong, Pac-Man, Dig Dug, Lode Runner, Tetris, the list goes on and on...

I'm in disagreement with you in a sense--I do feel appealing to casuals is a good thing. Or rather, there needs to be an in-between. Like how Street Fighter II or Othello are both relatively simple games to pick up and play, but there's also plenty of depth to keep a more hardcore player happy. It seems to me that more modern games tend to be black or white--they either cater so much to the hardcore that they alienate casuals, or they're so casual that they're almost like an Atari 2600 game. What the force needs is balance.

[Ryudo]

lol at an article from CNN. A bunch of people who know nothing about gaming. Consoles are not going anywhere.

[Gameguy]

Bojay said that in this economy it's hard to sell new gaming hardware every year. Rob2600 pointed out that Apple can sell the latest iphone and ipad at those prices. So yes, I agree with Rob2600 that Apple is able to sell those devices, even though the economy isn't that great. A lot of people don't see the purchase of an iphone or ipad as just a purchase with expendable income; they see the purchase as more of a necessity, since it's a part of their everyday life. Purchasing a game console, a flat panel television, or a new camera isn't looked at in the same manner. Purchasing an iphone or ipad is now considered on par with having a phone in your home, everyone needs that sort of device to communicate with the outside world, and function within it. I know that not having my iphone for a day would really compromise not only my ability to keep in touch with people, it would effect my job as well. I can't say the same for something like a game console or television.
It's still not a literal necessity, it's a product of convenience. Major appliances would be a necessity, though with these people tend to replace them only when they break down. How often do people upgrade home telephones or answering machines? Our home phones are well over 15 years old at this point, they're probably even older but I can't remember when we got them.

People may not look at smart phones and tablets the same way as game consoles or televisions, but they're basically the same. You can still use an older model phone and basically accomplish the same things, there's no reason to upgrade to a more recent model besides personal preference. People would rather buy a new smart phone than a new video game console, it's just something that more people would rather own as they're more desirable products. They're still not a necessity.

[Gunstar Hero]

Im not a kid, but I bet there are a lot that are hyped, maybe moms too, and preorders were through the roof apparently. Its a new game console so of course theres hype, but for this system the people who are most excited I bet dont log onto forums in droves talking about how much they want it. People have told me when I complain about the Wii U name that Nintendo would be fools if they threw out the successful brand name, but shouldnt, you know, NINTENDO be the bigger name? To people who love the Wii they love Wii casual games, Mario is a Nintendo character and not a big deal to casual game lovers.

Halo 4 though I bet its because another company is making it.

I'm 15 and have many friends who actually were very excited about the new Halo 4 but see the Wii U as another "casual" console that they think will only be fun to younger kids. I barely have heard anyone mention it and when they did it was mostly negative. I can't blame them though, I mean if they used normal controllers similar to the "Wii Classic Controller Pro" I would be 100% on board, but they added the tablet controllers and to me it just dosent feel like gaming anymore. My friends agree that the tablet style controllers are too obscure and make it feel like smartphone gaming, not good ol traditional gaming.

[Bojay1997]

It's still not a literal necessity, it's a product of convenience. Major appliances would be a necessity, though with these people tend to replace them only when they break down. How often do people upgrade home telephones or answering machines? Our home phones are well over 15 years old at this point, they're probably even older but I can't remember when we got them.

People may not look at smart phones and tablets the same way as game consoles or televisions, but they're basically the same. You can still use an older model phone and basically accomplish the same things, there's no reason to upgrade to a more recent model besides personal preference. People would rather buy a new smart phone than a new video game console, it's just something that more people would rather own as they're more desirable products. They're still not a necessity.

Actually, nothing you listed is a necessity. I know plenty of people who don't have working refrigerators/washers/driers/microwaves/stoves, etc...They just go out to eat every night and take their clothes to a laundromat. The point is that people see smart phones and tablets differently than they see video game consoles. Part of it may be that the wireless carriers have built in a two year replacement cycle based on both feature improvements and subsidies. It also makes a difference that some people don't even have landlines anymore (I know I don't and probably half of my friends don't), so a cell phone really is pretty critical. I know I use my smartphone for work and receive reimbursement partially of my bill for doing so. I have a number of friends who receive the same type of subsidy from their employers. In bad economic times, people view cell phones and to a lesser extent tablets as devices that are necessary to them. I even have unemployed friends who perceive their smartphones and tablets as critical to finding and keeping a new job. A video game console doesn't have that same type of perceived value. As such, the economy did and will impact video game and console sales far more than it will phone and tablet sales.

[Gamevet]

Actually, nothing you listed is a necessity. I know plenty of people who don't have working refrigerators/washers/driers/microwaves/stoves, etc...They just go out to eat every night and take their clothes to a laundromat. The point is that people see smart phones and tablets differently than they see video game consoles. Part of it may be that the wireless carriers have built in a two year replacement cycle based on both feature improvements and subsidies. It also makes a difference that some people don't even have landlines anymore (I know I don't and probably half of my friends don't), so a cell phone really is pretty critical. I know I use my smartphone for work and receive reimbursement partially of my bill for doing so. I have a number of friends who receive the same type of subsidy from their employers. In bad economic times, people view cell phones and to a lesser extent tablets as devices that are necessary to them. I even have unemployed friends who perceive their smartphones and tablets as critical to finding and keeping a new job. A video game console doesn't have that same type of perceived value. As such, the economy did and will impact video game and console sales far more than it will phone and tablet sales.

Yep!

My cell phone is my GPS, technical support and a tool used in my field of work. My company just did a rollout for Chase Bank that required us to take pictures of our before and after work, and we were required to email those photos to the project lead before we could leave the site. The phone I had a year and a half ago couldn't do those functions. I'm seriously thinking about upgrading from my 3GS iphone to a better model, because my wife's phone is starting to have problems, and the apps are starting to put too much stress on the phone I have. The upgrade won't cost much, since I'm do for a phone upgrade soon through my carrier contract.

[Gameguy]

Actually, nothing you listed is a necessity. I know plenty of people who don't have working refrigerators/washers/driers/microwaves/stoves, etc...They just go out to eat every night and take their clothes to a laundromat.
That description could also apply to the homeless, or even the extremely rich if they chose to live solely out of hotels. If someone was a nudist and rich enough they wouldn't even need clothing as they'd never have to leave their property. Or the amish could live without electricity or any of those things(except for clothing).


I don't have any of the current consoles, or any smart phone. I can read a map so I don't need a GPS either. A smart phone isn't something I need so I don't consider it a necessity or even something so standard that people are just expected to own them. My current cell phone is at least 4-5 years old by now, it's still working and does everything I need it to so I don't consider modern smart phones wearing out or breaking down in a couple of years to just be normal. I might as well mention that my phone does have a built in camera and pictures can be sent as an email just like text messages can, I don't really use these features but older phones are still capable of doing these things(though probably not as convenient compared to modern phones). I'm sure plenty of people can't live without a modern console as that's their Netflix box, but that's not for me either. I still consider them as optional products to spend disposable income on, they're not bills or taxes or other non-optional costs. If you'd rather buy a new smart phone than a new console it's not because one is more necessary than the other, it's that one is simply a more useful product that more people want so they'd rather spend their money on that. It's not because they have to buy one. Why not settle with an older phone for a few more years and buy a new console instead? People would rather just have a new phone as they'd enjoy it more.

Of course there are certain jobs that require the use of smart phones, but I doubt that there would be so many that it would affect the sales of smart phones overpowering the sales of consoles. Most people using smart phones aren't doing so for work, it's just for personal use.

[Gamevet]

Reading a map and driving around NYC was not what I'd call wise. I had to buy the map and then try to follow it while driving. I guess the map really wasn't a necessity, I would have eventually found my way through other means.

[RCM]

Actually, nothing you listed is a necessity. The point is that people see smart phones and tablets differently than they see video game consoles.

They sure do. I don't mind spending $700 on an iPad when I know I'm not going to be spending much more on apps. That's a major distinction for me and iOS games continue to get better and better. The fact that they'll also work on my iPhone is a major plus too.

[Graham Mitchell]

This article claims the solution is to casualize gaming even further. In my opinion, that is the opposite of what needs to be done to save console gaming.

The problem with the industry is that it has shifted its focus of making games that appeal to gamers, to those that appeal to casuals; and they've done so by removing the challenge from video games and then enhancing the graphics and story so that video games play more like interactive films.

This shift from gameplay to graphics being the selling point of console games is where the problem lies.

The decline of video game sales can be attributed to two things... 1) Hardcore gamers are buying fewer games because there a fewer games being made that appeal to them, and 2) Casual gamers are getting bored with the outdated graphics of current consoles. Most people would say that the solution is simple, just release new consoles. But the problem with that is, in order for the next-gen of consoles to be so impressive graphically that they'll make old experiences feel fresh again and reinvigorate casual gamer interest, they'll have to be much more powerful than usual, which will only make them unaffordable for the mass market. So what will happen instead is console manufacturers will make their consoles less powerful and more affordable, which will only lead to the casual gamer losing further interest in gaming.

Bottom Line: The graphics well is drying up. The game industry will have to make a shift back to gameplay-driven games that are designed for real gamers, or else the industry will collapse.

This is my sentiment as well, though I don't think the industry is going to collapse.

There are some cool looking games on the horizon, but they won't be out until way after Christmas.

This makes me wonder If the hype machine actually backfires, causing people to not buy anything now because they're waiting for what's ahead.

Game informer and other media outlets will announce these games years before they're released. I think it's going on 3 years since I saw the first bio shock infinite trailer. It's ridiculous.

[kedawa]

Smartphones don't last 15 years.