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The Economist Looks At The Console Industry

Fromeo writes "The Economist is running an interesting article discussing the state of the console industry, along with their usual interesting graph, showing the cycle that the industry follows."

215 comments

  1. Economist , Console! by SpanishInquisition · · Score: 0

    Those are 2 words that don't go well together.

    --
    Je t'aime Stéphanie
  2. Consoles.... by DigitalHammer · · Score: 3, Funny

    Why buy them? As my friend would say "They're a downgraded computer in a shitty-looking box".

    1. Re:Consoles.... by Kenja · · Score: 2

      You forgot to add "with games you can't get for a PC" to your statement.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    2. Re:Consoles.... by Bob+Kronkel · · Score: 1, Interesting

      Exclusive games? Better graphics? Hdtv support? They don't crash? They don't make you use windows? Cheaper? They don't require upgrades every 2 years?
      theres more reasons, but the simpsons is on.

    3. Re:Consoles.... by s20451 · · Score: 4, Interesting

      Why buy a $1500 gaming computer, with all the worries about compatible hardware, flaky software, etc. etc., when you can buy a $300 console, plug it into your TV, and be on your way? I have a console because I use linux on my main box, and if I'm working and want to take a break, I don't want to have to save everything, shut down, reboot into Windows, play the game, shut down, reboot into Linux, and re-open my work. There are also all kinds of games (like Gran Turismo) that are unavailable on the PC.

      --
      Toronto-area transit rider? Rate your ride.
    4. Re:Consoles.... by DigitalHammer · · Score: 1

      That's why we've got emulators. Most games for consoles eventually get ported to PC anyway...think of Atari games, the original sonic games, Grand Theft Auto 3, etc...some are old but still get ported. Emulators play the new stuff on PC for you. There (was) bleamcast and bleem! and theres snes 9x and even a ps2 emu out. Also, consoles' technology gets out dated in a matter of weeks or use outdated parts as soon as they come out.

    5. Re:Consoles.... by Zorton · · Score: 1

      I disagree. I've always found having a console to be handy when all your computers are either working on something or not working on something.

      Of course I had consoles before I had any real computing power under my control but still having the control pad and everything sitting right there was nice. Plus one didn't have to make sure he had the latest hardware to run the games. You could be assured the machine would support the games you wanted to buy (although slowdown was common in the past).

      The biggest disadvantage I see is the lack of a good resolution display for them. Networking is a definite lack but if the companies could manage to get a broadband standards based implemtation out there i would be quick in line to buy. Heck maybe even HD TV would made them look nice.

      Of course there is the lack of disposible income in my current budget but that's another issue :)

      Cheers

    6. Re:Consoles.... by akintayo · · Score: 1

      I see the console as a calculator, a special purpose computer that does its job very well. Just as it is dumb to buy a PC to do an ocassional calculation, IMHO it is also dumb to buy a PC just for games.

      I think the PC has wider variety of more innovative games, and the only selling points for consoles are cost and simplicity of operation. I know a lot of people think the consoles have better graphics, but I still think Fifa 98 for the PC looks better than the newer PS and PS2 versions

      --
      Woe be on to them, all who rise against poor people, shall perish in a the end. Buju Banton
    7. Re:Consoles.... by DigitalHammer · · Score: 1

      Exclusive Games? That's why we've got emulators.

      HDTV support? X-box only.

      Don't Crash? I beg to differ. Try playing Super Smash Bros. on N64 with 4 characters using specials at the same time. You'll see the difference then.

      Cheaper? Yeah, but hardly worth the value when you're paying for outdated parts.

      Better graphics? Depends if your talking about Xbox or PS2. PS2's getting pretty crappy now...GTA3 on PS2 was a BAD, lagtacular idea. Xbox? Geforce3 simply drives up the cost. Even with M$'s oversized bank account and lowering Xbox's price to 199, it loses a jesusload of cash in the process-about 200 per unit. "Better graphics" can only go so far.

      Upgrades? That's the consoles' downfall. When some new fangled game for the Xbox comes out that uses a lot of pixel-shading power, will the Box lag like a hippie's mind on LSD? Of course it will!

    8. Re:Consoles.... by Anonymous Coward · · Score: 0

      gamecube uses hdtv support also

    9. Re:Consoles.... by DigitalHammer · · Score: 1

      Ive played the GC on HDTVs and non-HDTVs and there's really no visible difference , with the exception of resolution.

    10. Re:Consoles.... by Gorobei · · Score: 2

      When I take a break from Gran Turismo, I like to reboot into Linux:) 4+ usable GFlops, gotta love this box!

      [goro@ps2]$ dmesg
      use boot information at 0x81fff000(old style)
      boot option string at 0x81fff100: root=/dev/hda1 crtmode=ntsc
      Loading R5900 MMU routines.
      CPU revision is: 00002e20
      Primary instruction cache 16kb, linesize 64 bytes
      Primary data cache 8kb, linesize 64 bytes
      Branch Prediction : on
      Double Issue : on
      Linux version 2.2.1 (root@anps2rel1) (gcc version 2.95.2 19991024 (release)) #1 Wed Nov 14 18:28:00 JST 2001
      no initrd found
      Console: colour dummy device 80x25
      Calibrating delay loop... 392.40 BogoMIPS
      Estimated CPU clock: 294.240 MHz
      Memory: 30828k/32760k available (1192k kernel code, 672k data)
      Checking for 'wait' instruction... unavailable.
      POSIX conformance testing by UNIFIX
      PlayStation 2 SIF BIOS: 0250
      Linux NET4.0 for Linux 2.2
      Based upon Swansea University Computer Society NET3.039
      NET4: Unix domain sockets 1.0 for Linux NET4.0.
      NET4: Linux TCP/IP 1.0 for NET4.0
      IP Protocols: ICMP, UDP, TCP, IGMP
      Linux IP multicast router 0.06 plus PIM-SM
      Starting kswapd v 1.5
      PlayStation 2 device support: GIF, VIF, GS, VU, IPU, SPR
      Graphics Synthesizer revision: 00005515
      Console: switching to colour PlayStation 2 Graphics Synthesizer 80x28
      pty: 256 Unix98 ptys configured
      ...

    11. Re:Consoles.... by Chillblaine · · Score: 1

      Let's just clarify something : Console != Computer. Apples and Oranges.

      Why buy them ?

      Steps for getting a Game running on a console :

      1. Buy Game for console.
      2. Insert Game in console.
      3. Power On.
      4. Play.
      Simple.

      "shitty-looking" - Damn, looks like I just fed a troll.
      --
      You Are Being Lied To.
    12. Re:Consoles.... by Steveftoth · · Score: 2

      All the consoles now have HDTV support, GC has had it since the start, same with X-Box. Sony just realeased a special hdtv adaptor in Japan.

      BTW, All you emulator thiefs can go take a long walk off a short pier.

    13. Re:Consoles.... by SirSlud · · Score: 3, Insightful

      well, I'd say that a well equipped gaming PC will blow an Xbox or Gamecube (sorry, I dont put the PS2 in the same league, but thats for another flame-ridden thread ;) away in terms of:

      - FPS
      - resolution
      - online play
      - saved game complexity

      but the consoles win with:

      - FPS consistancy (games designed at a 'lowest denominator' level in terms of performance, so you dont slow down as much as PC games do when stuff gets really messy)
      - control
      - $-per-unit-of-performance

      Also, dont forget the suitability of certain types of games:

      - online lends itself to PC
      - fps to PC
      - PC games more editable
      - loading times on consoles usually better (or at least Gamecube just blows everything away with its cute lil miniDVD media)
      - multiple people at the same time .. duh, console :)

      I dunno. As always, it depends on what you like to play. Some people need their Quake, others their Platformers. Console games are often designed to be more pickup-and-play than PC games too.

      The fact that most people have larger televisions than monitors helps the console in terms of display real estate in most homes too ..

      Okay, thats all I can think of. Spewing over. :)

      --
      "Old man yells at systemd"
    14. Re:Consoles.... by evilned · · Score: 2

      BZZZZ.... wrong. the resolution is the same. The change is from interlaced to progressive for the gamecube. Most games support 480 progressive on HDTV, whereas standard tv is 480 interlaced.

      --

      "My head hurts, My feet stink, and I dont love Jesus." -Jimmy Buffett

    15. Re:Consoles.... by irritating+environme · · Score: 1

      Consoles provide high-end graphics (at the time of their design) at much cheaper prices. More importantly, the games utilizing these graphics can optimize the hardware to 100% output (especially in later generations of game releases), since all the consoles have identical specs. Not so with PCs, which generally have wasted development time catering to different power levels, and can't fully optimize hardware. This has alleviated somewhat with the smaller numbers of 3D card manufacturers and the semi-standardization of APIs. Sure, if you're a billionaire, buy a new computer each month.

      --


      Hey, I'm just your average shit and piss factory.
    16. Re:Consoles.... by DigitalHammer · · Score: 1

      emulators are still good for playing out of print games, like snes, regardless if its "stealing" or not.

    17. Re:Consoles.... by amuro98 · · Score: 1

      Bleem never worked right.

      A PS2 emulator? What, does it need a dual 2Ghz system to run?

      I've fiddled around with emulators for older systems, but I've yet to find one that would play 100% the same way it would on actual hardware. They might make nice alternatives when the hardware and software is unavailable otherwise, but both the Playstation one and two are alive and kicking.

      Also, unlike PCs, consoles are not about hardware. They're about games, and only games. Do I care that my PSX has only 4MB of memory and a 2x CD drive? No. All I care is that I can play PSX games on it.

      Do you care what processor your microwave uses? I doubt it. All you care is that it can make popcorn and heat up your leftovers.

    18. Re:Consoles.... by Anonymous Coward · · Score: 0

      you forgot to say "And I'm a retard"

    19. Re:Consoles.... by duren686 · · Score: 1

      My snes is a lot better at playing snes games than any emulator. Likewise, my Dreamcast plays games that Dreamcast emulators don't play. I wonder why!

      --
      Y2K Compliant since the late 1890s
    20. Re:Consoles.... by DigitalHammer · · Score: 1

      No, it doesn't require a dual 2GHz processor. Not even a single 2Ghz proccessor. Just a Geforce4 Ti 4200, and a 1.4 Ghz Athlon which I have. Snes 9x is a reliable emulator for SNES, FYI. Bleem, with some tweaking and hacking, works great.

      I believe that 99% of the world's population doesnt care what processor their microwaves use. Neither do I, nor would I see the point of attempting to find out. That question is almost as trivial as being asked to find out the velocity of an African swallow.

      By your writing style, I can tell that you are either a) a punk (rocker/fan) b) a Mongoloid c) Both

    21. Re:Consoles.... by Anonymous Coward · · Score: 0, Flamebait

      It matters not.
      The games offered for consoles are simply idiotic short-lived stuff directed at 10 year olds.

    22. Re:Consoles.... by Jaysyn · · Score: 1

      You must have a very slow computer then.

      --
      There is a war going on for your mind.
    23. Re:Consoles.... by Anonymous Coward · · Score: 0

      I actually meant compatibility-wise.. Performance-wise, my computer 0wnz my snes.

      --Duren686, AC because this is pretty off-topic

    24. Re:Consoles.... by Flamerule · · Score: 2, Interesting
      Software, software, software, my friend!

      The reason to buy a gaming computer is because consoles don't work well for a whole lotta games -- and there are all kinds of games that are unavailable on consoles.

      • Tried playing Everquest on a console? Alright, that may change in the future-- well, no, because most console owners don't have keyboards for them.
      • What about any first-person-shooters? Those thumb-sticks can't come close to the accuracy of a mouse and keyboard.
      • Do you even want to think about playing Homeworld on a console? There aren't enough buttons on a controller to handle 3d strategy.
      • "snort" Can you say, simulation? No flight sim would be playable without a keyboard.

      Conversely, some games work better on consoles -- or at least on a controller. You can always hook up a controller to your computer, but if you're mostly going to be playing those types of games, you may, indeed, want to dispense only $300 of your money.

      • Fighting games
      • Racing games
      • Hell, most any action game
      • And some styles of RPGs work well too

      But the gaming world only uses software as an excuse -- I can't imagine being bereft of my beloved Civ III, Heroes of Might and Magic IV, Deus Ex and Homeworld, but I think people tend to classify themselves as a console or PC gamer, and stick to one to the exclusion of the other. I'm a PC gamer, and my pet peeve is whenever someone refers to computer games in general as "videogames". Even though I should know better, I ignore most things happening in the console world, with the exception of some exceptional titles that remind me of my early days on the SNES -- like Metroid Prime. And for the past half decade I've been bereft of Metal Gear Solid, and every Final Fantasy after VI.

      So, should I have forgone the complexities of my dual-boot Mandrake/WinMe system for the PSX, PS2 and XBox? Well, the consoles may be simpler, and cheaper, but it doesn't matter, because I can honestly say the PC games I've played are worth the thousands of dollars I spent to play them. My advice is, go into debt and buy everything, because games are more important than money.

    25. Re:Consoles.... by Anonymous Coward · · Score: 0

      Who cares? Games are just for fun and entertainment anyway. If you absolutely *NEED* a certain game for a certain system and are willing to buy that system to play it, you really need a life.

    26. Re:Consoles.... by iamblades · · Score: 1

      As opposed to the longevity and maturity of quake?

      I find your view quite shortsighted.

      There are plenty of good games on all the consoles and the PC, just a matter of taste...

      --
      Shit adds up at the bottom...
    27. Re:Consoles.... by JimPooley · · Score: 2

      You mean like Grand Theft Auto 3?

      --

      "Information wants to be paid"
    28. Re:Consoles.... by Juju · · Score: 2

      Amen to that!
      I have got a PII 400 laptop and a PS2

      My laptop (which I bought for $400) is fast enough for my computer needs.
      And the PS2 is great for games.
      I also got a GameBoy advance to play while I am travelling...

      Which means I have a totally portable computer/game system suited for all my needs. Besides, it will still be up to date in 1-2 years.
      Try to do that with a PC without burning all your cash every year!

      --
      Black holes occur when God divides by zero.
    29. Re:Consoles.... by DigitalHammer · · Score: 1

      My answer to that is No. Its a 1.6 Ghz Athlon with a Geforce 4 Ti 4200.

    30. Re:Consoles.... by Anonymous Coward · · Score: 0

      GTA3 on the PS2 bad? I'm not sure what performance problems you experienced but it always seems to run fine for me...

    31. Re:Consoles.... by Anonymous Coward · · Score: 0

      Not to mention the fact that by using only emulated copies that you are not exactly following the law. Unless you are going out and buying a copy of each game you have downloaded.

      So based on your comments and style I figure you are A)Poor B)Stupid C) Both

    32. Re:Consoles.... by Alan+Partridge · · Score: 1

      shitty looking box? A PS2 or a Gamecube looks a helluva lot better than most PCs. If your were talking about Macs, I could see your point.

      --
      That was classic intercourse!
    33. Re:Consoles.... by Manitcor · · Score: 1

      Better graphics? Depends if your talking about Xbox or PS2. PS2's getting pretty crappy now...GTA3 on PS2 was a BAD

      GTA3 suffered in its graphics because the developers added much more complexity into the environment. The system on top of handling basic graphic processing must handle multiple events on a scale of many city blocks. Rudimentary AI for the street walkers, cars and such. For great 3D graphics look at GT3 which can focus more on the graphics just simply due to the lack in complexity. Granted GT3 is an excellent game but when it comes to the sheer complexity of the software GTA3 is truly innovative.

      If you rate a game or platform simply on graphics you could be missing out on a lot, I know plenty of games that have very good graphics and loads of eye candy but the game itself is complete crap. The inverse is also true.

      --
      "Don't mess with him, he taunts the happy fun ball."
    34. Re:Consoles.... by Anonymous Coward · · Score: 0

      Forget all these silly arguments like price, ease of use, etc. There's one reason to own a game console.

      Playing games on a console is a social event. You sit there with friends, in the same room, looking at the same screen, usually screaming at each other as your buddy just pummelled you with the rcp-90, or stole the spread gun that you were gonna use.

      When was the last time you played a 2 or 4 player game on your computer with friends all sitting in the same room so you could talk while you play?

      THAT, my friends, is why I buy consoles and console games.

    35. Re:Consoles.... by DigitalHammer · · Score: 1

      Yes, your facts are solid and true. GTA3 is also a great game, unique in some ways, I agree. However, the fact that GTA3 was released on PS2 was a terrible idea. Like you said, the game's AI and loads of textures caused a lot lag on the system. the developers really should have known that would happen. Im guessing they had no choice-I believe they had a contract with Sony that stated they could not make thier first release of GTA3 on any system except PS2.

      In my opinion, the PC version is much better, even with a Geforce2 GTS. I've also played it on a Geforce 4 Ti 4200, with virtually no lag. And I agree, games do not need great graphics for good gameplay. Chrono Cross and the FF series is are examples.

    36. Re:Consoles.... by juggleboy · · Score: 1
      He said an emulator for a PS2, not a PSone. Far from needing a 2GHz processor, the emulator doesn't even exist yet, and probably won't for many years to come, due to the PS2's complicated hardware.
      Just a Geforce4 Ti 4200, and a 1.4 Ghz Athlon which I have.
      Oh, just that? So with just that, I can play games at _almost_ the same quality as I can on a $50 PSone? And using a nice keyboard, instead of that nasty controller?
    37. Re:Consoles.... by Anonymous Coward · · Score: 0

      Yeah...That sounds like a good plan. You enjoy that.

      PC-only gamers are so dumb.

    38. Re:Consoles.... by Jaysyn · · Score: 1

      Then what is your problem? I've an Athlon 700Mhz (not even a T-Bird) with 768Mb RAM & a GeForce4 MX420. Every 2nd generation console I've emulated has looked much better on my computer than it ever did on the console.

      Jaysyn

      --
      There is a war going on for your mind.
    39. Re:Consoles.... by DigitalHammer · · Score: 1

      Uh...I don't have a problem. Yes, my PC emulators perform much better than consoles...like you're saying.

    40. Re:Consoles.... by Jaysyn · · Score: 1

      Listen, you've really confused the sh*t out of me, you aren't even the guy I was replying to in the first place.

      But since we both agree, lets not argue.

      Jaysyn

      --
      There is a war going on for your mind.
  3. Interesting quote. by tshak · · Score: 3, Insightful

    I found the following interesting:
    the opportunity to create a network of consoles through which all kinds of entertainment content, including films, games and music, can be distributed. That was Sony's original aim with the PlayStation 2.

    All of the XBox naysayers talk about how the "XBox is a PC" and how MS won't focus on the gaming experience but try to bundle it (see the recent PVR leak). However, it is obvious that Sony is trying to do the exact same thing - this is not the first time I've seen mention of a "Sony digital media center". So, really, the only "true" console is the GC, which of course a silly contention.

    --

    There is no longer anything that can be done with computers that is nontrivial and clearly legal. -- Paul Phillips
    1. Re:Interesting quote. by Jason+Earl · · Score: 1

      Microsoft's problem isn't that the XBox is a PC. Microsoft's problem is that they lose a fat pile of money every time they sell an XBox. They lose so much money that they can't possibly make it back by selling games. If Microsoft were smart they would only release crappy titles until such time as they have their XBox Live network set up so that they at least have a prayer of recouping losses with subscription services. They should be actively discouraging gamers until they have the infrastructure in place to actually make a buck.

      Hmm... Perhaps that explains the currently available XBox titles.

    2. Re:Interesting quote. by tshak · · Score: 2

      Microsoft's problem is that they lose a fat pile of money every time they sell an XBox. They lose so much money that they can't possibly make it back by selling games.

      Please show me the data to back this up. No one knows how many games or accessories needs to be sold to break even, but considering that XBox has the highest attach rate, this is not a bad (or uncommon) business model. Not only is the PS2 loosing a small amount of money now (Please, no links to Gord the biased speculator), but the PS2 lost a lot more when it was launched. The benefit is, the PS2 has the volume to keep costs down. The XBox will probably never get that volume so it will always cost a lot to build, however, that doesn't mean that it will never profit.

      --

      There is no longer anything that can be done with computers that is nontrivial and clearly legal. -- Paul Phillips
  4. 8192 bits by 2030! by Wesley+Everest · · Score: 4, Funny

    Gotta love how the game industry plays with their numbers of bits. I imagine it'll take another hardware generation or two before the marketing guys come up with another number to hype.

    1. Re:8192 bits by 2030! by Bob+Kronkel · · Score: 0

      Hey man, you know that xbox 2 will have 40,000 megawintons of fun! Included in the box!

    2. Re:8192 bits by 2030! by Fnord · · Score: 3, Funny

      I wonder how these reporters would react if you pointed out to them that the Gamecube and Xbox are both 32 bit and the PS2 spends most of its time in a 32 bit mode.

    3. Re:8192 bits by 2030! by binaryDigit · · Score: 2

      Actually the industry has severly downplayed the number of bits in their systems. This was a big deal esp when the jump from 16 -> 32 was made (3D0 era), but since then most manuf. usually just mention it, vs making it a key selling point (e.g. the 128bit Emotion Engine vs the 128bit Playstation2).

      I guess this is a combination of the industry realizing that bits don't mean much beyond 32 and that the average user is now computer savy enough to know that the number of bits really doesn't matter (now the Mhz, why everybody knows that _it_ is the most important factor in performance ;)

    4. Re:8192 bits by 2030! by Phil+Wilkins · · Score: 2

      They'd probably stare blankly at you.

      Dunno what you mean about a PS2 32 bit mode though. Unless you're referring to most of the intructions only operating on the low 32 or 64 bits of its 128 bit registers.

    5. Re:8192 bits by 2030! by Fnord · · Score: 2

      I'll admit I don't know as much about the PS2 as I do the other machines, but from what I remember, the PS2 has the ability to turn each of its 128bit scalar registers into 4 32 bit element vectors. And this vector mode is the prefered way of doing most hard calculations (considering you rarely need to deal with 64 bit numbers much less 128).

    6. Re:8192 bits by 2030! by Citizen+of+Earth · · Score: 1

      You'd be able to address every sub-atomic particle in 31 different universes.

    7. Re:8192 bits by 2030! by Phil+Wilkins · · Score: 5, Informative

      That's ok, I know more about the PS2 than either of the others. The actual situation with regards to EE registers is pretty complex, as the EE actually consists of the core, 2 vector units, and an fpu.

      The core has 31 128-bit registers, and instructions to manipulate them either as 32-bit, or 64-bit integers, or as 4x32-bit integers, or as 8x16-bit integers (where 4x32 bit means, four 32-bit integers packed into one-128 bit integer). The reason there's 31, is that register 0 (zr) is a constant 0.

      Each vector unit has 31 4x32-bit float registers, and 15 16-bit integer registers. One of the vector units (VU0) is available to the core as a co-processor, as are all of it's registers. The other sits in the DMA stream, and can be thought of as a pumped up vertex shader.

      Finally the fpu is pretty traditional, with 32 32-bit float registers.

      So thats 31 128-bit integer registers, 31 4x32-bit float registers, 15 16-bit integer registers, and 32 32-bit float registers. Giving us a total of 109 registers, with a total of 8208 bits, and that's not including 20 or so status or result registers.

      None of this is modal, you can mix core, VU, and fpu instructions as you like. There's also nothing stopping you treating a 128-bit core register as a 32, 64, 4x32, or 8x16-bit integer, nor moving it to a VU0 register, where it's treated as a 4x32-bit float.

      There's also the IPU, a DMA controller, and a whole bunch of other stuff, but they're not directly accessibly from the core. Well, actually, even that's not true, as most things are also memory mapped, but that's only really for debugging, as memory mapped access has a habit of stalling everything.

      Oh, and the bus to the RDRAM is 128 bit, while the bus to the GS is 64 bit.

      So, in summary, mostly 128-bit registers, and a 128-bit data bus. It's a 128-bit system.

    8. Re:8192 bits by 2030! by Juju · · Score: 2

      Yep, this article is so full of errors, simplification... But then, it's target audience is non technical so that's really no surprise!

      If Slashdot readers expect to learn about Technical informations on the consoles in the Economist, then they are going to the wrong website. They should try Ars Technica instead...

      --
      Black holes occur when God divides by zero.
  5. Can it forecast by sheepab · · Score: 2

    When Ill be getting My Playstation 20?

    1. Re:Can it forecast by Jonny+Ringo · · Score: 1

      Yeah, that will be rad. Isn't that the one you snort through your nose?

  6. Hardware vs. software by wpmegee · · Score: 0, Redundant

    Most console companies routinely lose money on the actual hardware. To wit: Microsoft loses at least $100 on each console it sells .

    Also, the actual games themselves don't cost more than a couple dollars each to manufacture (even on DVD), and that's including the box, instructions, etc. So let's see, MS makes $40~ on each game, so it must sell at least 2-3 games to make the X-Box profitable. And selling a remote for $30 (to play DVDs) doesn't hurt either.

    1. Re:Hardware vs. software by s20451 · · Score: 2

      Also, the actual games themselves don't cost more than a couple dollars each to manufacture (even on DVD), and that's including the box, instructions, etc.

      Aren't you forgetting those pasty-faced, caffeine-consuming individuals that produce the funny patterns of 1's and 0's on the DVD? What do you call them now ... programmers? Most of the programmers I've talked to need to eat occasionally, and live somewhere with a roof.

      --
      Toronto-area transit rider? Rate your ride.
    2. Re:Hardware vs. software by lucabrasi999 · · Score: 2, Interesting

      Just one minor note... Yes, it's the software that makes the money on consoles. But, not all that profit goes to the console maker. If EA or Sega or someone else develops the game, I believe M$ makes about $10 on each unit that developer sells for the X-Pox. That $10 is a licensing fee of some sort. When M$ is the game developer (as in their first big seller-- Halo) then they probably get something closer to $40. Anyway, rumor has it -- http://www.redherring.com/insider/2002/0624/xbox06 2402.html -- that M$ will lose about $2 Billion (with a B) on the X-Pox over the next two years. Don't feel sorry for them. They have something like $40 Billion in the bank.

    3. Re:Hardware vs. software by lucabrasi999 · · Score: 1

      I don't know why that red herring site is not posting properly. I'll just go away now...

    4. Re:Hardware vs. software by Antity · · Score: 1
      [Poster said games would only cost a "couple of dollars" a piece]
      Aren't you forgetting those pasty-faced, caffeine-consuming individuals that produce the funny patterns of 1's and 0's on the DVD? What do you call them now ... programmers? Most of the programmers I've talked to need to eat occasionally, and live somewhere with a roof.

      Do you know of any console game programmer that actually earns that much money per game that it would be of any relevance in the two-digit dollar range on a video game actually sold? Remember, they sell ten thousand if not hundred thousands of modules.

      Most console companies try to get about $50 per module, no matter what it did cost to produce and no matter the quality.

      Can't be coincidence.

      --
      42. Easy. What is 32 + 8 + 2?
    5. Re:Hardware vs. software by Fnord · · Score: 2

      Just because programmers don't get paid per unit sold doesn't mean they don't factor into the profits of a game. Games cost upwards of $5 million to program upfront. Your $40 of profit per game doesn't even get factored in until this investment is returned.

    6. Re: Hardware vs. software by Antity · · Score: 1

      Using your figures, a game costing $5 million to program and bringing back $40 of profit per module would mean that this game would have already brought in production costs (just brainware) after selling about 125,000 modules.

      Anyone any stats for consoles like PS2, Dreamcast et al?

      --
      42. Easy. What is 32 + 8 + 2?
    7. Re: Hardware vs. software by Fnord · · Score: 2

      The $5 million number is a *very* rough estimate, and most of the bigger selling titles cost much more than that to develop. Then you have to take into account advertisement costs, distribution (you do have to pay trucks to take your game to best buys across the country you know), and apparently legal fees (at least most current game companies feel the need to sue anyone that writes any program that interacts with their game in any way (companies like Id withstanding)).

    8. Re:Hardware vs. software by Anonymous Coward · · Score: 0

      Becuase there is a space in the URL... Click here

  7. Just to be clear by great+throwdini · · Score: 2

    For people who may have misread the summary as I did ... The Economist article concerns game consoles. Given the range of topics on /. it very well may have been about "consoles" (e.g., WYSE terminals).

    Clarity isn't a four-letter word.

    1. Re:Just to be clear by ajmarks · · Score: 0, Troll

      I think it's safe to assume that almost every slashdot reader knew what the headline is about. If you didn't, you're dumb.

      --
      Opinions are not Informative, though they may be Insightful or Interesting.
    2. Re:Just to be clear by Anonymous Coward · · Score: 0

      Except there isn't a "console industry" that deals with tty or wyse or whatever specifically, so i don't see how anyone could confuse these.

    3. Re:Just to be clear by Anonymous Coward · · Score: 0

      You are right. The title should contain the words game consoles.
      English is not my mother tongue, and I don't play (computer nor "console") games much. I was really wondering, what this article will be about - VT 100, programs running in text mode or what?

  8. Slashdot linking to The Economist... by Anonymous Coward · · Score: 5, Funny

    ... is like the National Enquirer mentioning Scientific American.

    1. Re:Slashdot linking to The Economist... by Anonymous Coward · · Score: 0

      Except the Enquirer spells all their headlines correctly.

    2. Re:Slashdot linking to The Economist... by Anonymous Coward · · Score: 0

      Except the Enquirer spells all their headlines correctly.

      True, but they don't have a goat-man named CmdrTaco.

    3. Re:Slashdot linking to The Economist... by hymie3 · · Score: 1

      Slashdot linking to The Economist..... is like the National Enquirer mentioning Scientific American.

      Thanks. You made me spit my bacardi and coke all over my monitor.
      Jerk.
      [+1 funny to parent? please?]

  9. Error in article by Anonymous Coward · · Score: 0

    X-Box is a 32 bit console. GameCube is a 64 bit console. They have them both grouped as 128 bit consoles.

    Yup.

    1. Re:Error in article by Bob+Kronkel · · Score: 0

      a lot of people (including M$) call xbox a 256 bit constole.
      I wonder when people will realize that "bits" are a highly inaccurate way of classifying consoles. They should be talking about processors and video ram and stuff like that.

      I mean, if Game Boy advanced is 32bit, and so is xbox, you'd think people would figure out that they should find a new system of classification.

    2. Re:Error in article by SirSlud · · Score: 3, Interesting

      People who arnt in the business of comparing (ie, not techies or wannabe techies) rarely make that comparison. Doubly so for products they would never even be comparing when making purchasing decisions.

      Its just a number for sales people to rattle off to parents, who invariably think one of two things:

      - gee, that number's higher than the last time I heard it

      or even worse

      - gee, that number's high

      It was like MMX - it was a useless feature when salespeople were pushing it, but shoppers really seem to be fooled by numbers and acronyms. The only part that ticks me off is how hard it is to teach a non-technical person to never put stock into what they hear, and more importantly, never put stock in their own ability to interpret it. For some reason, people dont all seem to act like they can talk the talk with cars, planes, other technical things - but there is something about technology that makes lots of newbies think they can get some sense of perspective in the jungle of specs and features out there. I know I might sound somewhat elitist, but I hope for my sake a mechanic knocks some shit into me if I ever go off on engine specs and prepare to drop serious money on my assesment of the sales lingo I'm presented.

      --
      "Old man yells at systemd"
  10. Wow (graph error) by simm_s · · Score: 3, Funny

    The X-Box has a 128bit processor, dude I can't wait until Intel releases that for my PC.

    1. Re:Wow (graph error) by Anonymous Coward · · Score: 0

      Uh, that would be a 128-bit graphics processor, which Nvidia has already released for your PC...

  11. Wrong Wrong WRONG!!! by Cutriss · · Score: 4, Informative

    My god...this article has more inaccuracies than a Slashdot story!

    but Sony, Microsoft and Nintendo all intend to release plug-in adaptors to link their boxes to networks.

    And WHERE do you plug in the Xbox broadband adapter, eh?

    Both Sony and Microsoft decided that ordinary modem connections were too slow to do justice to their advanced consoles.

    Really? Then why does the PS2 network adapter have BOTH network and modem ports?

    All three firms are losing money on their consoles, though exactly how much is difficult to say.

    Wrong again! Microsoft is the only one doing this!

    And as far as that sales graph goes...not a single one of these systems is 128 bit. The GameCube and Xbox are both 32-bit systems (PowerPC-based and Intel x86, respectively). I don't know about the Emotion engine in the PS2, but I suspect that with less than 32 MB of RAM, there's no reason for it to have more address lines, so it's probably 32-bit as well. And the Dreamcast uses a SH4 processor...That certainly isn't 128-bit either.

    --
    "Mod, mod, mod...and another troll bites the dust."
    1. Re:Wrong Wrong WRONG!!! by bbk · · Score: 2

      Some companiese have plans to release USB analog modems for the XBox, that hook into the controller ports, for those people without broadband.

      I agree that most of this is marketdroidspeak...

      AFAIK, the "graphics" portion of the chipset is how most consoles are measured... The chipset in the dreamcast was a 128bit memory interface PowerVR chip, for example. The PS2/Xbox/GC all have equivalent or better graphics chips.

      The whole "xx-bittedness" of a console really means nothing. It's the games - I play more of my Sega Saturn library now that anything else, just because the games are damn fun.

      BBK

    2. Re:Wrong Wrong WRONG!!! by dimator · · Score: 2

      All three firms are losing money on their consoles, though exactly how much is difficult to say.

      Wrong again! Microsoft is the only one doing this!


      Are you sure about this? 150 bucks seems really cheap for a GC...

      --
      python -c "x='python -c %sx=%s; print x%%(chr(34),repr(x),chr(34))%s'; print x%(chr(34),repr(x),chr(34))"
    3. Re:Wrong Wrong WRONG!!! by MarvinIsANerd · · Score: 2, Informative

      the "128 bit" refers to the width of the graphics bus, not the cpu. the nintendo 64 wasn't "64 bits" either, but its graphics bus was 64 bits wide - at least, that was their marketing spin on it.

      as for losing money - all three manufacturers are indeed losing money on the hardware - not just microsoft although they are definitely losing the most money - none of the three companies are profiting from the sales of their hardware at this time.

      the number of bits that a cpu can crunch in a register has no relevance to having more or less address lines.

    4. Re:Wrong Wrong WRONG!!! by Viewsonic · · Score: 2, Insightful

      Yes, Nintendo has stated many times that they can sell the Gamecube at $99 and still make a profit. They have always stated that they will have the trump card no matter how fierce the pricecuts get, and you know what? It's true.

    5. Re:Wrong Wrong WRONG!!! by WillSeattle · · Score: 2, Insightful

      Not only is it true, but I just love getting those dividend checks from Nintendo along with the quarterlies that prove that it's true.

      MSFT is really hurting - bad. If they can't sell 8-10 games per xBox, they lose money. Period. And the only reason their metric of games per box is where it is, is the 3 game bundles they sell it with ...

      At least I'll be laughing while I play Oddworld: Munch's Odyssey on the GameCube and The Sims on the PS2 ...

      --
      --- Will in Seattle - What are you doing to fight the War?
    6. Re:Wrong Wrong WRONG!!! by Have+Blue · · Score: 4, Informative
      And WHERE do you plug in the Xbox broadband adapter, eh?
      Into the ethernet port on the back, perhaps?
      Wrong again! Microsoft is the only one doing this!
      I have yet to hear real numbers from a reliable source (and I have talked to several people inside MS) that prove or disprove this point. All the console manufacturers use the same business model.
      And as far as that sales graph goes...not a single one of these systems is 128 bit
      Already been pointed out many times, but an argument could be made that the (128-bit) graphics processor is now the most important part of the console (it's certainly doing far more work than the 32-bit CPU).
    7. Re:Wrong Wrong WRONG!!! by tealover · · Score: 1

      I Can gaurantee you that Nintendo cannot make a profit on the GameCube at $99. They don't control the costs of their components, unlike Sony; They are subject to market prices.

      Also, if we were to believe you, Nintendo would have been very stupid to set the price of the GameCUbe at $199. If they could have broken even by selling at $99, can you imagine the sales they would have racked up ?

      Don't let your antipathy for the other console manufacturers dither your common sense. It's not becoming.

      --
      -- You see, there would be these conclusions that you could jump to
    8. Re:Wrong Wrong WRONG!!! by Anonymous Coward · · Score: 0

      If they could have broken even by selling at $99, can you imagine the sales they would have racked up ?

      They only have a finite amount of units to sell at launch. If people are willing to buy it at $199, Nintendo is going to sell it at that price.

    9. Re:Wrong Wrong WRONG!!! by Anonymous Coward · · Score: 0

      heh i liked your post... nifty...

      as for the losing money thing... well -- i dunno about M$, but sony should be making a couple bux on the consoles. i don't know how much R&D dollars they have sunk into it -- but since they pay no licensing fees to anyone (for the chips, you know), and the chips are *fairly* inexpensive to manufacture (can't quote you the numbers, buddy, just trust me on this one), they should not be losing $$ on them. this was absolutely true when they were selling for $299 -- now they might be losing a *bit*. but christmas is comming around, and there will be a huge volumn of chips (read: cheapo) / consoles, so they should be back in the green.

      M$ might be a bit different but i would not believe that much -- they are probabbly losing money, but remember their R&D $$ is also low. true nVidia did a "custom" chip -- but being PC-like in nature, most of their investment is still in marketing, not the console design / manufacture. Now -- the key difference is that M$ is bearing a bit more burden than Sony -- Sony pays a fab for the chips, done deal -- M$ pays intel / nVidia, and they in turn pay for the fabs (not intel, mind you), but heh, 733 P3s are cheap nowadays anyhow, especially considering M$ probabbly signed away some royalty from the games to intel and NVDA directly to lower the costs even more. when all is said and done (i am sorry this is not very clear), the math works out that M$ is probabbly not losing as much per console as one would think / like. in fact, for the christmas boom i would not be surprised that the consoles actually makes them a few buck each due to high volumn.

    10. Re:Wrong Wrong WRONG!!! by Anonymous Coward · · Score: 1, Interesting

      Sony approach:

      Big R&D up front for in-house solution
      = Low incremental cost of production
      = No leakage of profit to suppliers
      = obscenely profitable as quantities get larger.

      Microsoft approach:

      Use mostly off-the-shelf components from third-party suppliers:

      Gets machine to market quickly
      Reduces R&D costs (reasonable if you're just putting a toe in the water of a completely new market).

      HOWEVER

      the *incremental* cost does not go down nearly as fast and there is leakage of profits to the suppliers.

      My guess is that XBox is a comparitively low cost market-testing exercise and the second-generation example (if M$ has half a brain) will be built more on Sony/Nintendo lines.

    11. Re:Wrong Wrong WRONG!!! by Guppy06 · · Score: 2

      " I have yet to hear real numbers from a reliable source (and I have talked to several people inside MS) that prove or disprove this point. All the console manufacturers use the same business model."

      Not necesarily. Sony and Microsoft would be losing money because they're using new, proprietary technology developed solely for their consoles and they can't get enough volume out for the price to start dropping off.

      Nintendo, on the other hand, specifically went out of their way to avoid making another N64 and, in their efforts to make the console easier to write for (among other reasons), essentially used off-the-shelf parts to throw together the GCN. Practically right on up until the console itself was unveiled Nintendo told third-party developers that there was no need to get dev kits because there wasn't anything in the GCN that needed to have a new dev kit written for it.

      Not having to throw money at the DVD Consortium only explains part of the price differences between the GCN and its competitors.

    12. Re:Wrong Wrong WRONG!!! by thewheeze · · Score: 1

      the xbox broadband adapter is onboard...

      ps2 has both for those that can't afford broadband...

      the bit ratings on the system are left over from the early days
      nintendo = 8 bit
      snes and genesis = 16
      ps1 and saturn = 32
      nintendo64 = well it has 64 in the name, so it's 64 bit right?

      and so on and so on.

    13. Re:Wrong Wrong WRONG!!! by Sivar · · Score: 2

      The Nintendo 64 was indeed a 64-bit system. Its CPU is a MIPS R4300 at a little over 93MHZ. The R4300 is a 64-bit processor.

      --
      Computer Science is no more about computers than astronomy is about telescopes. --E. W. Dijkstra
    14. Re:Wrong Wrong WRONG!!! by TotallyUseless · · Score: 1

      "Into the ethernet port on the back, perhaps?"

      why on earth would you need a 'broadband adapter' to plug into your fully function NIC that is included with the xbox? whoever wrote the linked article, did minimal research. He could have gotten more accurate information from IRC. Not sure where he got his.

      --

      Time for some tasty Shiner Bock!
    15. Re:Wrong Wrong WRONG!!! by catmaker · · Score: 1

      Also, if we were to believe you, Nintendo would have been very stupid to set the price of the GameCUbe at $199. If they could have broken even by selling at $99, can you imagine the sales they would have racked up ?

      They'll charge whatever the market will bear. Early-adopters will pay whatever Nintendo asked. Once the initial mad rush is over, they can bring the price down and clean up.

      --
      status is failure. status is failure
    16. Re:Wrong Wrong WRONG!!! by el_benito · · Score: 1

      actually Sony is losing a little bit of dough on the PS2. I read a recent article that pegged the cost of producing a PS2 at about ~$180. Now the system does sell for $199, which technically is $19 more, but on the other hand there are other costs than the manufacturing. There are the shipping, sales promotion, and defect replacement costs on top of this.

      Furthermore, Sony HAS to sell it at lower than $180 to the resellers, because the retailer wants to make more than a couple bucks on the console to cover costs like advertising, salaries, stocking, and paying for ex-employees like me who take their name tags with them when they quit.

      Hehe, too bad nobody ever really got the joke of the "Coming Soon!" sticker on my ID badge ;)

      --
      http://liquidben.com - Aspiring to an 'under construction' gif
    17. Re:Wrong Wrong WRONG!!! by Have+Blue · · Score: 2

      Can you plug your coaxial cable line or whatever the hell DSL runs on straight into your computer? Same with the Xbox.

  12. Yeah can't wait to... by Twister002 · · Score: 2

    ...play Neverwinter Nights on my console.

    oh

    But we WILL be able to play it on our Linux boxes, once we get all the flakey software drivers and hardware compatibility out of the way. :)

    --
    "For a successful technology, honesty must take precedence over public relations for nature cannot be fooled." -Feynman
  13. Reminds me of a book I read... by 5h4k4-2u1u · · Score: 2, Interesting

    Just finished a read that covered the beginnings of the console wars pretty well called The Ultimate History of Video Games, while it's not quite as complete as the title would have you believe, and it's not the easiest read in the world, it's still has a lot of information about how the economy and people who purchase video games drive the market.

    It will be very interesting to see how the competition pans out over the years... Microsoft and Sony make quite an assumption that gamers are really looking for the "Total-Multimedia-Experience" and "Network Gaming". Personally, I'd just like to see innovation replace the same old styles of games being re-released with a facelift every year...

    --


    --
    I've had to create 4 new accounts trying to avoid karma... dammit!
  14. Re:the console industry sucks by DigitalHammer · · Score: 0

    Bingo. As I had stated before "computers in shitty-looking boxes".

  15. Fact Check: Are they ALL losing money? by sterno · · Score: 3, Insightful

    Okay, this is a matter of some debate from the many articles I've read on the console industry. Are they all really losing money on the consoles?

    It seems pretty clear that Microsoft is losing money in a big way on the consoles. I have seen nobody suggest otherwise, and if you think about what their hardware is and the price it makes sense that they are losing money.

    For sony, the profit/loss question seems more up in the air. I've seen most places say that they are losing money on it but I've seen some articles suggesting that the loss is minimal or may in fact be a small profit.

    As for Nintendo, I've gotten the sense that they are actually making at least a small amount on their consoles. They didn't throw in all the power that the other two companies did planning to instead rely on the power of their collection of games as incentive to buy.

    So does anybody have any reasonable factual information about how much the companies are or are not losing?

    --
    This sig has been temporarily disconnected or is no longer in service
    1. Re:Fact Check: Are they ALL losing money? by ivan256 · · Score: 3, Informative
      According the the Inquirer, the PS2 costs Sony $185 to get out the door. They also claim that each Xbox looses $150 for MS.

      http://www.theinquirer.net/25060210.htm

      I don't have any references about Nintendo, but I've heard rumors that they can build a GameCube for That means that for at least a little while, Sony was pulling in a cool $115 in profit on each PS2 they sold.

    2. Re:Fact Check: Are they ALL losing money? by Anonymous Coward · · Score: 1, Interesting

      "They didn't throw in all the power that the other two companies did planning to instead rely on the power of their collection of games as incentive to buy. "

      Don't be silly. The Gamecube/Dolphin is faster processor-wise and graphics-wise than the PS2. It should be...the design is 2 years newer.

      I own all 3, so I can tell you that the "power" of each is so close that it doesn't matter. They're essentially the same machine from an end-user standpoint.

  16. Their cycle... by Anonymous Coward · · Score: 0

    ..can kiss my ass. Look at Gameboy and Playstation. Reminds of stock analysts...forcing data to fit their hypotheses.

  17. Atari and the 80s by freeweed · · Score: 3, Interesting

    Rather frightening that on the graph, everything pre-nintendo is labelled "Atari systems". Of course, society back then pretty much equated Atari with video games (see: Blade Runner for a good chuckle).

    I know the VCS pretty much decimated all competition back then, but does anyone have any harder figures? Adding the Colecovision and Intellivision into the pot, there must have been some signifigant inroads into Atari's numbers.

    The funniest though, has to be the fact that they say Atari systemS. Sorry folks, but other than the venerable VCS/2600, Atari didn't really do squat in the marketplace.

    --
    Endless arguments over trivial contradictions in books written by ignorant savages to explain thunder in the dark.
    1. Re:Atari and the 80s by artemis67 · · Score: 2

      The funniest though, has to be the fact that they say Atari systemS. Sorry folks, but other than the venerable VCS/2600, Atari didn't really do squat in the marketplace.

      I think that's the point they were getting at. The 2600 represents the pinnacle of Atari's achievements in the console market. After that, they were fairly irrelevant.

    2. Re:Atari and the 80s by astro · · Score: 3, Insightful

      The 5200 was not at all irrelevant. At the time, it had games that could not be produced on any other console - only on the "personal computers" of that day - Atari 400/800, C64, etc. I was positively blown away when I first played games on the 5200 (at a JC Penny store in Fairbanks, Alaska, maybe 1981 (82?)).

      There was a huge downturn in consumer spending in the early 1980s, that anyone in their mid-to-late 30s should remember as a fact of teenage life. This absolutely killed the market for game consoles at that time, given that it drove a huge price war among "personal computers".

      This was also when Activision in particular rose to what was a huge business empire for the software world at that time - they produced titles for every console platform as well as every "pc" platform at that time that I am aware of. They later bought many of the rest of the companies that produced the classic PC games at that time (i.e. Infocom!).

      So what you had was similar, oddly enough, to what we have today - "personal computers" that had as good or better titles than the most advanced consoles at a slightly higher cost (then - C64 for $299, Atari 5200 for $199; today, a PS2 will cost me $200, whereas I can build a K7 900mhz box with Nvidia GForce 4 for ~$300) but in both cases the PCs can do far more than the console.

      I have no idea what my original point was at this point, except that maybe folks should look to Activision for where the really sound business model is - ~24 years of success in a time that saw literally hundreds of other HW *and* SW makers go by the wayside.

      --astro

      Yes, I have a Gamecube. And yes, my current "high end" PC is a 1ghz Duron. And I am happy as a clam with both.

    3. Re:Atari and the 80s by Te1waz · · Score: 1

      I seem to remember that Atari machines were rare in the UK in the 80's.
      The majority of game machines were Spectrums, C64s and Amstrads.

      There was no real reason to have more than one of them as games came out simultaneously all of them.

      In the recent past, games for consoles seem to be for one platform or another (I bought an N64 for Zelda and Goldeneye and a Ps2 for Driver et all).

      I've noticed in the past few months that increasingly games are coming out for all three major consoles at the same time (The Spiderman game for example). Which is good for the consumer, and allows for better comparitives on the three consoles.

      --
      From my Autobiography - "Lifestyles of the Sad and Desperate"...
  18. They correct themselves by Steveftoth · · Score: 2
    Later they say that

    Sony and Nintendo both plan to release adaptors for their consoles

    So they really don't know what they are saying.

    All the consoles to date have not had greater then 32 bits worth of addressing. The new consoles PS2, DC, X-Box (in the GPU) , even Jaguar, have many 128-bit (or larger) data paths and multimedia registers. The PS2 has a over 2000 bit wide bus in the GS, but only 4 Megs of vram. I love how they say the nintendo 64 is actually 64 bits ;p

    Also they missed the Atari comeback effort in the early 90's after the Genesis came out. Both the Lynx and the Jaguar are not on this graph.

    1. Re:They correct themselves by jandrese · · Score: 2
      Also they missed the Atari comeback effort in the early 90's after the Genesis came out. Both the Lynx and the Jaguar are not on this graph.


      Yes they are. You just can't see them because their lines are being hidden by the abscissa of the graph.
      --

      I read the internet for the articles.
    2. Re:They correct themselves by Anonymous Coward · · Score: 0

      First of all, i think when they say 'atari systems' they mean pre-crash systems (as if mattel, magnavox, coleco, and bally never entered the console market)
      So the Jaguar/Lynx numbers are probably in the 16 bit line.

      (even if not, the lynx didn't sell THAT badly.)

  19. Nintendo by I_redwolf · · Score: 1

    People keep counting nintendo out and it's really the only console maker that I can think of that has games that are worth making multiplayer versions of. When I think playstation 2 I think violence adult mature games, kickboxing and shit nothing really multiplayer. When I think Xbox I don't think about much because there are no games but when I think Nintendo I think of all sorts of multiplayer games, they don't necessarily have the best graphics or any of that but they are really fun. Could you imagine multiplayer mario kart?!?! An online tournament of mario kart (time to email nintendo).. if the next big thing is multiplaying consoles. It'll definitely be ps2 , xbox VS nintendo. This is gonna be good.

    1. Re:Nintendo by duren686 · · Score: 1

      Could you imagine multiplayer mario kart?!?!
      Yes I can.. My SNES can imagine it too, even go one step further and output it onto my TV!

      --
      Y2K Compliant since the late 1890s
    2. Re:Nintendo by Anonymous Coward · · Score: 0

      nintendo really does have the best multiplayer games, which is what makes consoles great. Super Monkey Ball, Super smash brothers melee, Mario Party 4. Also a Mario Kart for the GameCube is in the works but i dont think its gona come out for a while but its in the works

  20. Huh? by cascino · · Score: 1

    Sony's PlayStation business currently generates around 60% of the firm's profits. That figure has exceeded 100% at times.
    Huh?

    1. Re:Huh? by baboyer · · Score: 4, Insightful

      It's called subsidies. They were using profits from the games to offset losses in other groups. Because of this, the profits from the PlayStation business were actually larger than the profits for the whole company.

  21. Ummm... by Steveftoth · · Score: 1

    you still can't get the following games for PC. All of which I truely love...
    FFX
    GT3
    MGS2
    Dynasty Warriors 2 (or 3)
    Dragon Warrior VII (ps one)
    And for x-box:
    Halo (yes, where is that MAC game they call Halo Mr. Jobs? Mr. look how awesome macs are at macworld Mr. Jobs? Too bad it came out for X-Box first!)
    Game Cube:
    Pikamin.
    Super Monkey Ball
    RE:Zero
    DreamCast:
    Soul Calibur (the one true fighting game)
    I mean sure if you want to wait like ten years to steal these games then you don't have to buy them. And yes, if you are using an emulator you are stealing, there is NO grey areas about them. Just admit it you thief.

    1. Re:Ummm... by ckd · · Score: 3, Informative
      And for x-box:
      Halo (yes, where is that MAC game they call Halo Mr. Jobs? Mr. look how awesome macs are at macworld Mr. Jobs? Too bad it came out for X-Box first!)

      Well, what do you expect when Microsoft used their petty cash account to buy Bungie (a long-time Mac-first or hybrid-first company)?

      Remember, the original plan was for Halo to come out for PC, Mac, and PS/2 (the latter was officially killed, the other two are merely "delayed"). Do you think they would have sold more copies for PS/2 than they did for XBox? Do you think that Microsoft therefore basically gave up profits so they could use Halo to help XBox sales? Doesn't that sound kind of like the actions they've been convicted of in other areas?

    2. Re: Ummm... by bigsexyjoe · · Score: 1
      if you are using an emulator you are stealing, there is NO grey areas about them. Just admit it you thief.


      The article says they sell the console units at a loss so manufactures would probably want you to get an emulator. (Assuming your decision to buy/pirate the games is independent of your use of an emulator.)

    3. Re:Ummm... by Alan+Partridge · · Score: 1

      for goodness' sake - it's NOT CALLED A PS/2!

      --
      That was classic intercourse!
    4. Re:Ummm... by joshsisk · · Score: 1

      GT3 is available for the PC.

    5. Re:Ummm... by Anonymous Coward · · Score: 0

      Gran Turismo 3 (GT3) is not available for PC. Although Grand Theft Auto (GTA3) was just recently released for the PC.

    6. Re:Ummm... by Anonymous Coward · · Score: 0

      >> Microsoft therefore basically gave up profits
      >> so they could use Halo to help XBox sales?
      >> Doesn't that sound kind of like the actions
      >> they've been convicted of in other areas?

      No, but it sounds like the exact same strategy that video game companies have engaged in for years: buy a hot property and lock it to your console to improve sales. This has been going on since the 80's. Why is it suddenly a crime that Microsoft has done it?

  22. True, true. by DooBall · · Score: 0

    "A generation that grew up with games has simply kept on playing."

  23. Clarification by ajmarks · · Score: 0

    That wasn't a Troll. It was flamebait. Silly moderator.

    --
    Opinions are not Informative, though they may be Insightful or Interesting.
  24. Wrong as usual... by Viewsonic · · Score: 4, Interesting

    Nintendo stated many times that they plan to eventually offer the Gamecube for $99 and they will still be turning a profit on the machine itself. However, they didn't plan on cutting prices so soon to fight the competition. As usual the person writing the article just assumes all the consoles are losing money when in fact Sony has refab'd their system for the pricecut so they dont lose money, and Microsoft has done nothing but lose tons of money from the start.

    1. Re:Wrong as usual... by Juju · · Score: 2

      I remember seeing figures that the PS2 costs $185 with cost being reduced for the newer version with the all-in-one chip design.

      The GameCube costs around $100 right now, and cost can be brought down in the future by using the same integration techniques used my Sony.

      The X-Box xosts M$ around $350 (source from the Red-Herring) with no real possibility to reduce the cost since all components where already cheap and are provided by third party companies.

      Microsoft used of the shelves components to build a cheap PC, but now that PC components have moved beyond that, the costs are not going down...
      Microsoft is new to the console business and the X-Box fiasco is going to cost them dearly. But hey, they have got money, and they are here to learn.
      They might get it right eventually (or give this market alltogether.) The future will tell...

      --
      Black holes occur when God divides by zero.
  25. broken metaphor by bigdavex · · Score: 4, Funny

    Nothing illustrates the battle's ferocity better than the eye-watering price cuts of the past few weeks.

    It makes people cry? Maybe the hardware makers, I guess.
    --
    -Dave
    1. Re:broken metaphor by NeoSkandranon · · Score: 1

      And the parents that braved vicious shoppers and apathetic clerks just so they could brutalize their checkbook in order to have one for their kiddies the week they came out

      --
      If you can't see the value in jet powered ants you should turn in your nerd card. - Dunbal (464142)
  26. PVR was not a "leak". Nor is GC silly. by Viewsonic · · Score: 2

    Microsoft stated when the XBox was released, that they were discontinuing their UltimateTV PVR in hopes of merging it into the XBox. This pissed a lot of people off in both camps. First, who wants a console when they just want a PVR, and second, who wants a PVR with monthly charges when all they want is an XBox. Their online strategy costs even more money on a yearly basis. Nintendo was smart and has seen what has happened to the CDTV, Dreamcast, and soon Microsoft and will just stay a true to life 100% console machine for the masses while Sony and Microsoft try and duke it out in an unwinable online arena (Really, who cares when all the online games are already on the PC and play BETTER on the PC?) .. Kudos to Nintendo for keeping their boat afloat.

  27. I think they're trying to say... by hackwrench · · Score: 1

    that the firm's other divisions lost so much money at times that it ate into the profits that the Playstation would have earnd had it been a separate company.

  28. Not just for kids anymore... by rob-fu · · Score: 2, Interesting

    Perhaps the reason why 'gaming is no longer the province for children and teenagers' is because that when gaming consoles became popular (i.e. in the day of Atari/Colecovision and then NES/SMS) these same people were children/teenagers themselves? (Ok, that may be stating the obvious)

    And why didn't NEO-GEO make it into the chart? That was by far the best console during that time...too bad it was $100 a game (or some ungodly price like that) and some ridiculous amount for the console. I knew a kid who had one, but he was a prick and never invited me over to play it, because he was a spoiled brat.

    1. Re:Not just for kids anymore... by Anonymous Coward · · Score: 0

      SNK's master console was included with the 16 bitters.

    2. Re:Not just for kids anymore... by cadallin451 · · Score: 1

      The great irony about the NEO-GEO is that although it failed in the mass market, it has maintained a sufficient cult following that games continue to be released for it. In terms of staying power it was/is the greatest console of its era.

  29. One related curiosity... by sterno · · Score: 2

    So it would appear from those figures that Sony, at least, may be making a small profit. But I'm wondering, are those prices purely the hardware cost per unit?

    Each manufacturer does a lot of marketing. Also add to Microsoft's hemorraging that I'm sure they have to put quite a bit of money into getting exclusive titles for the X-box. Sony has enough market share that developing only for PS2 makes perfect sense. Most of the exclusives on Nintendo are all manufactured by Nintendo. So, in the end i have to believe Microsoft is really hurting relative to the other manufacturers. Having said that though, they have billions in the bank, they can afford to take a hit in the short term if it pans out long term.

    --
    This sig has been temporarily disconnected or is no longer in service
  30. Back in the day..... by Steveftoth · · Score: 3, Insightful

    It was that the bit rating of the console was always the main processor. Not the graphics. The NES only had 4 bit graphics, but it was an '8-bit' system. Sega genesis could only display 64 colors at once and the SNES 256, yet these were all, '16-bit' systems. The main processor was the heart and soul of all the consoles before the current generation. As it would do almost all the work. Only in the last generation did we finally see co-processors that could actually do more then flip a couple of bits. So now they rate it by the largest thing in the system they can get away with, which is usually the size of an internal register.

    You really just can't compare apples to oranges which is what they are doing. All these systems over the years have compeletly different architechures. From the Atari 2600 to the X-Box, the only similarity is that they are all modeled after turing machines. So at the end of the day, they should be compared on which games they have and not how powerful they are.

    1. Re:Back in the day..... by aaarrrgggh · · Score: 2, Insightful

      All they are trying to do is show how there are "generations" of consoles. Why split hairs over the details... we are talking about the Economist!

  31. Graph #2 is wrong by Anonymous Coward · · Score: 0

    The second graph is wrong. (provided by sony, go fig.)
    The third wave (16 bit) started in '87, with the PCEngine. Even if they are american-only numbers, it should have started in '89, not 90.

  32. Huh? by Ex-Parrot · · Score: 5, Funny
    Sony's PlayStation business currently generates around 60% of the firm's profits. That figure has exceeded 100% at times.

    That sounds like either new math or Andersen accounting practices.

    --
    To many, total abstinence is easier than perfect moderation. -- St. Augustine
  33. Gamecube costs less than $99 to make. by Viewsonic · · Score: 1

    For the record, Nintendo has stated that they eventually plan to sell the Gamecube for $99 and still turn a small profit. They did this from the getgo, and was a very smart decision. I dont know anyone who uses their PS2 or XBox as their DVD player since they BOTH have a LOT of movie compatability problems. It was a good idea, but didnt work out. Nintendo saw no need to try and fuse anything but pure gaming into the console.

    1. Re:Gamecube costs less than $99 to make. by TheQuantumShift · · Score: 2, Informative

      Funny, I kepp hearing about the ps2 having problems with movies, but every dvd I put in has worked fine. Granted I've only tried about 50 or so...

      --

      Shift happens. Fire it up.
  34. 60-100%? by layingMantis · · Score: 2, Insightful
    Sony's PlayStation business currently generates around 60% of the firm's profits. That figure has exceeded 100% at times.

    Wtf? This is a surprise to me. So Sony is basically dependent on their video game console? If the number "exceeds" 100%, then all of Sony's electronic hardware and music properties are (or were), losing money. And Sony has only been in the 'console' business for 8 years or so.....

    This is probably false info, considering all the other inaccuracies in this bad article.

    1. Re:60-100%? by NoBeardPete · · Score: 2

      While the numbers do sound suprisingly large, they do not imply that every other business of Sony's was losing money.

      Say I run a business with 4 arms. Arms 1, 2, and 3 makes $1,000 this year. Arm 4 looses $2,000. My net profit is $1,000. This means it is accurate to say that Arm 1 made %100 of my profit. Nonetheless, most of the arms of my business are making money.

      All it takes is for them to write off a bunch of loses at some point for this to be feasible. I'm not too familiar with Sony's business, but it wouldn't suprise me if, say, they wrote off a bunch of loses because of overpriced aquisitions they made during the tech boom that subsequenty dropped in value. If this write-off was as big as their profits from all non-PS businesses, that would make the quoted figure correct.

      --
      Arrr, it be the infamous pirate, No Beard Pete!
  35. Not just Wrong, MSFT admits defeat by WillSeattle · · Score: 1

    In recent news in the WSJ (don't know if online, I read the print version), they will be offering some xBox games for the GBA and GameCube, specifically including Oddworld: Munch's Odyssey.

    OK, it's official, I have absolutely no reason to buy an xBox anymore.

    --
    --- Will in Seattle - What are you doing to fight the War?
    1. Re:Not just Wrong, MSFT admits defeat by Viewsonic · · Score: 1

      Oddworld is not owned by Microsoft. I believe they just distributed it for them. They had games on the PS2, and before that they worked on the old Shadow of the Beast games over at Psygnosis in the Amiga days.

  36. More interesting quote than that... by srvivn21 · · Score: 2

    Sony's PlayStation business currently generates around 60% of the firm's profits. That figure has exceeded 100% at times.


    How the hell does one business line exceed 100% of a compannies profits?
    1. Re:More interesting quote than that... by jumpingfred · · Score: 1

      Pobably because some products loose money.

    2. Re:More interesting quote than that... by Chris+Mattern · · Score: 3, Informative

      > How the hell does one business line exceed 100% of a compannies profits?

      When the company, exclusive of that business line, is losing money. For example: product A made by company X shows a net profit of $120 million a year. Leaving aside the revenues and costs associated with A, X loses $20 million a year. Result: Company X as a whole shows a net profit of $100 million a year, with product A being 120% of X's profits.

      Chris Mattern

    3. Re:More interesting quote than that... by Yumpee · · Score: 1

      Three options:

      (a) Sony's PS business has revenues = 60% of Sony's profits. PS Revenue can be > 100% of Sony profit.

      (b) Sony's PS business has profits = 60% of entire Sony's profits. PS Profit can be > 100% of entire Sony profit if some other Sony branch is losing money.

      (c) Economist needs to employ better reporters.

      Y.

    4. Re:More interesting quote than that... by Anonymous Coward · · Score: 0

      Sony's PlayStation business currently generates around 60% of the firm's profits. That figure has exceeded 100% at times.

      How the hell does one business line exceed 100% of a compannies profits?


      Example:
      Sony TV has a loss of $10 this year.
      Sony PS2 has a profit of $30 this year.
      Sony combined has a $20 profit this year.

      PS2 profit = 150% of Sony profit.


      The real lesson is to think for a moment before rushing to get an early comment in.

    5. Re:More interesting quote than that... by Anonymous Coward · · Score: 1, Funny

      By hiring Arthur Anderson ;) ;)

    6. Re:More interesting quote than that... by Yumpee · · Score: 1

      Here's an article with barcharts showing that Sony's electronics business lost money while the game business made money. So the PS2 profits could be larger than net Sony profits.

  37. Simple rationalisation Re:Consoles.... by Anonymous Coward · · Score: 1

    Why buy them?

    I used to think the same thing. In fact, my thinking was 'you're always better off spending the console money upgrading the PC'. But I've recently taken a good hard look at my PC and decided its time to piss off the shitty Win98 partition and go completely Linux, and at the same time 'legitimise' my software ownership by throwing out all my pirated microsoft software. The only thing I had the Win98 partition around for was to play games. So, one PS2 and one partition format later, and I've vanquished the evil empire altogether.

    I consider my console cash has bought me a little freedom from tyranny, and perhaps a little better quality of life.

  38. Another inaccuracy... by srvivn21 · · Score: 1

    Sony's PlayStation business currently generates around 60% of the firm's profits. That figure has exceeded 100% at times.


    How does one business line generate more than 100% of a company's profits?
    1. Re:Another inaccuracy... by Anonymous Coward · · Score: 0

      If the rest of the company is losing money.

  39. Disney titles change color when played by the PS 2 by brodin · · Score: 1

    I've had trouble with a lot of Disney titles on the PS2 (and that's with the "new" DVD player code). I couln't play Pinocchio without the colors changing while playing; same thing for the Book of Pooh.

  40. You're assumptions are WRONG! by BitMan · · Score: 3, Informative
    And as far as that sales graph goes...not a single one of these systems is 128 bit. The GameCube and Xbox are both 32-bit systems (PowerPC-based and Intel x86, respectively). I don't know about the Emotion engine in the PS2, but I suspect that with less than 32 MB of RAM, there's no reason for it to have more address lines, so it's probably 32-bit as well.

    First off, the external addressing of the chip has nothing to do with the internal width of the chips registers. The last time I checked, the Nintendo Gamecube was MIPS 5000-based, which is an enhancement of the 64-bit MIPS 4000 core. And the Sony Emotion engine is a customized MIPS 4000 core with a specialized 128-bit SIMD execution unit and registers.

    The only reason the X-box can challenge them with its general Intel x86 approach is the fact that the CPU clock is much faster (almost 4x the PS2's) and has a GPU that is 18 months newer in design. Otherwise, at least the PS2 is a much sweeter custom design -- and it costs far less to reproduce at today's feature sizes in the massive volume consoles are reproduced at.

    --
    -- Bryan "TheBS" Smith
    Independent Author, Consultant and Trainer
  41. xbox strategy failure by fred+fleenblat · · Score: 2, Interesting

    When the xbox was first brought to the public's attention, one of the strengths mentioned was that since it was at heart an intel cpu and nvdia gpu (which are common in PCs), a great quantity of games would quickly be ported from the PC to the xbox. This has not happened, and the lack of game titles available has become a very severe criticism of the xbox.
    What is preventing PC games from being ported?

    1. Re:xbox strategy failure by Jason+Earl · · Score: 3, Interesting

      My guess would be royalties. After all, your PC game company can create a new PC game and not have to pay a dime in royalties to Microsoft. If the company takes the time to make an XBox port, then they have to worry about copies of their XBox port stealing sales from their more lucrative PC version. When the XBox market gets large enough so that it is worth the risk the PC game companies will probably do the necessary work. In the meantime, however, only those companies that Microsoft is paying are likely to come out with XBox titles first.

    2. Re:xbox strategy failure by Lisias · · Score: 0
      What is preventing PC games from being ported?
      Common sense, perhaps...

      Why they (PC games makers) should spend money to buy the right to spend more money to port games (that already sells well) to a format where they have to spend yet more money (royalties) to earn some one?

      --
      Lisias@Earth.SolarSystem.OrionArm.MilkyWay.Local.Virgo.Universe.org
  42. Try some of the engineering magazines! by BitMan · · Score: 2
    I have yet to hear real numbers from a reliable source (and I have talked to several people inside MS) that prove or disprove this point. All the console manufacturers use the same business model.

    All of them used the same initial business model, but Sony and Nintendo are far beyond the "initial entry." Regardless, their smaller, more efficient, custom MIPS designs have shrunk in die size as fabrication technology as shrunk to smaller feature sizes. Normally "commodity x86" wins in economies of scale, but the sheer quantities of Sony and Ninendo volume also gives them the same econoies of scale benefit despite their custom chipsets. So then it becomes a matter of total die size -- X-box loses, big time!

    One only needs to read EETimes and a few other engineering magazines to see articles about how much it is actually costing Sony and Nintendo to reproduce their MIPS-based solutions. Microsoft? What would Microsoft know about Sony and Nintendo's costs?!?!?!

    --
    -- Bryan "TheBS" Smith
    Independent Author, Consultant and Trainer
  43. Oh ho... by DigitalHammer · · Score: 1

    And to think I actually care if using emulators is stealing or not? Hell, no. Console companies force game companies (that make hit games) to release games for their console only, so people will flock to buy them, as Sony did with Rockstar's GTA4 (Vice City). I refuse to fall into this marketing trap.

    And no, I don't have to wait ten years to get these games for free? I have stacks of copied console and PC games I got for, in my words, "reduced prices". Why pay for something at full price when you can get it for less, or even free? While M$ is trying to squeeze every last penny from public schools for their their decisions to renew licenses, do I feel guilty for using a cracked copy of Windoze XP? My answer is No. Pricing the console at 200 bucks while having selling slivers of silicon for 50 is a pretty uneconomical idea, world-wise. That's the reason why, for example, Russia's got a huge pirated software market. the ruble is worth very little and no one can afford extravagant prices for luxuries-like games. This also applies to most other poverty-stricken or economically poor countries.

    Believe it or not, I played a ported version of FFX, Dynasty Warriors 2&3 for PC. It was even compatible with a gamepad. So as it is said in a famous anomatopeia, boo yah.

    1. Re:Oh ho... by BlameFate · · Score: 1
      So as it is said in a famous anomatopeia, boo yah.

      The word is onomatopeia, and are you trying to immitate a ghost?

      Believe it or not, I played a ported version of FFX, Dynasty Warriors 2&3 for PC. It was even compatible with a gamepad.

      I'll single that out from the rest of your deluded ramblings although I could have picked any sentence, and offer the comment : Grow up and stop talking bollocks.

      --

      --is not to be confused with user #672982 - Bame Flait

    2. Re:Oh ho... by DigitalHammer · · Score: 1

      FYI, "boo yah" is an expression used to describe triumph or revenge. Come to America, its popular here. Alse this is the net, where typos are common. Its been like that in net message boards for the past 10+ years.

      If you don't believe me, then fine, its your choice. But, its true, ive played ported versions of console games people havent though possible.

    3. Re:Oh ho... by checkyoulater · · Score: 1

      FYI, "boo yah" is an expression used to describe triumph or revenge. Come to America, its popular here.

      This explains it, then. In the rest of the world, we don't have an official language known as Ebonics.

      --
      Is that a real poncho? I mean, is that a Mexican poncho or is that a Sears poncho?
    4. Re:Oh ho... by DigitalHammer · · Score: 1

      But at least in parts of France and almost the entire continent of Africa is familiar with it. Some slang used in (black) French rap is derived from (black) American rap. (on another note, new slang words in the French "rappeur" world are also derived from a combination of Arabic and French words).

  44. The Right Industry For Investment? by Anonymous Coward · · Score: 0

    hmm so I invest in the game industry from here on in till 2006. Then wait for the cycle to begin its upward curve again, about 2008. Especially if the general market is in a downturn because the gaming industry does not appear attached to the general market swings.

    swweeetttt.

  45. Remember the GeForce256 by lingqi · · Score: 2

    Back when original GeForce (NV-10) first came out?

    do you know how nVidia (supposedly a respectable company) pulled 256 out of its you-know-where? this is quoted from Tomshardware:

    Well, it took me some time to really understand that as well. First of all it isn't the price, Creative Labs are supposed to ship theirs for $249, but if you're in the right state with low tax it may still add up to $256. It should also not really be the memory interface, because this is only 128-bit wide. Some think that the usage of DDR ('double data rate') memory excuses the use of '256' for the memory interface, but that's in my humble opinion not quite all right. GeForce-cards with SDR- RAM would anyway not deserve the '256' then and the fact that data is transferred with the rising as well as falling edge of the memory clock does still not make it wider than 128-bit. The memory interface is anyway my critique-point number one, because it provides the boards equipped with SDR-RAM with a slower memory bandwidth than TNT2-Ultra-boards. GeForce's memory is currently clocked at 166 MHz, while TNT2-Ultra runs it at 183+ MHz and both chips have the same memory bus width of 128-bit. NVIDIA did not tell us the memory clock of the DDR-RAM card in our test, but I guess it's 166 MHz too, so that this card has at least 81% more memory bandwidth than TNT2-Ultra.

    But let's get back to the magic '256'. I could hardly believe my ears when I was finally told what the '256' stands for. NVIDIA adds the 32-bit deep color, the 24-bit deep Z-buffer and the 8-bit stencil buffer of each rendering pipeline and multiplies it with 4, for each pipeline, which indeed ads up to 256. So far about the fantasy of marketing people, they are a very special breed indeed.

    --

    My life in the land of the rising sun.

    1. Re:Remember the GeForce256 by TotallyUseless · · Score: 1

      +1 very interesting

      --

      Time for some tasty Shiner Bock!
  46. My Favorite Console Isn't Made Any More by SEWilco · · Score: 1

    I liked the Zenith in the oak console. The hard part was making that turn to get it in the living room after squeesing through the door.

  47. I need to get me A MBA of my own! by Anonymous Coward · · Score: 0

    let me see, the manufacturers are losing money selling consoles...
    Yet they're going to make it up with:
    a. volume
    b. market share
    c. who the hell knows...

    I remember way back when the atari computers were competing against the musch better made TI-99 and TI-99/4a. TI was losing money on every machine sold, and when the bust came, there were truck loads of game cartridges BULLDOZED into landfills in texas...
    I guess the fact that I don't have an MBA just doesn't let me fathom the economics of this model...

    1. Re:I need to get me A MBA of my own! by anarkhos · · Score: 1

      I have one of those in my attic. The video modulator was always breaking...

      Anyway the name of the game is licensing in time for launch. You have to leap ahead in the 100m dash to have a chance of winning or you'll spend the entire race trying to gain momentum. Atari Lynx, Jaguar anyone?

      Lying your ass off in TV ads doesn't hurt either, like the Sega Genesis ads.

      --
      >80 column hard wrapped e-mail is not a sign of intelligent
      >life
  48. Not entirely accurate by Kirby-meister · · Score: 3, Informative
    The article is not entirely accurate - not all three consoles are losing money on hardware sales.

    Sony owns its own factories and is an R&D company - they have been lowering the size of each of the PS2's chips, and very recently put both the Emotion Engine and Graphics Synthesizer on one chip, allowing them to further cut costs on production.

    Look at it this way - back when the PSX was released, the price of $300 meant it sold at a loss. Opening up a PSX showed a mess of an architecture and the things were commonly known to overheat (infact, when PSX-mastermind Ken Kutaragi showed that the PS2 could be kept in a 'vertical' position, a lot of people had to chuckle at the fact that the only way their PSX's wouldn't overheat is if they were in the same position). But by the time the PS2 was unveiled, the cost to make a PSX core was around a couple of bucks at most, a reason why a PSX chip is the I/O processor inside the PS2 (and thus allows just-about perfect PSX emulation on the PS2.

    That was over a period of 5-6 years, so I imagine at this point Sony has been able to drastically cut costs to the point where $199 might actually be a profitable price.

    Meanwhile, both Intel and NVidia are pocketing whatever production improvements they make, and are sticking it to Microsoft. I believe this might be the reason Microsoft has recently been getting ready to start their own chip production (for the Xbox 2, of course).

    As for Nintendo, I have no idea how ArtX's Flipper GPU license is being handled (especially since ArtX is now a part of ATI, the reason ATI's logo appears on every GameCube), nor do I know too much about the Gekko, other than it was done with the help of IBM. Panasonic helped with the proprietary disc format, but I believe the only thing they got from that is the right to make a DVD-playing GameCube, the Q. The only thing I know is that the GameCube doesn't cost nearly as much to make as an Xbox, and probably less than or equal to (but more likely less than) a PS2.

  49. Nobody really knows by tkrotchko · · Score: 2

    I think all these guys talking about how much Microsoft, or Nintendo or Sony is losing are repeating stuff that they've heard with no independant confirmation. How could they? With the exception of a handful of managers at MS, who could possibly know what MS "loses" on the hardware? Nobody. And MS or Sony isn't going to tell a reporter the truth.

    I happen to think that it costs about $100 to make an X-Box, but MS "leaks" these loss numbers to make it seem as if buying the console is close to theft

    (e.g. "Hey bobby joe, I got me a X-Box. I only paid $200, but it costs MS $350 to make. Boy, ain't they dumb! Mebbe I'll buy 2 more 'cause I earn $150 for every X Box I buy")

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
    1. Re:Nobody really knows by Ella+the+Cat · · Score: 1

      I think all these guys talking about how much Microsoft, or Nintendo or Sony is losing are repeating stuff that they've heard with no independant confirmation.

      Non Disclosure Agreements. Even under NDA, there's no guarantee you're being told "the truth", but the need for both parties to do business means it must be pretty close. Also, there are companies that can take these things apart and work out to the cent what it likely costs to build. Every cent saved on a console selling 40 million units is $400k saved.

  50. What a deal. by phriedom · · Score: 1

    Ok so I would just need to buy a $200 video card and Bleem would work better/satisfactorily? Wow, that sounds great. Wait, a PS One is $50, and for $16 more I can buy a second controller so my buddy can play with me, and on the 32" screen in the living room. If you had friends you might understand the appeal of that option. Can you play 4 player Madden football on your computer? Sure, you just need 4 USB controllers and a USB hub, what does that cost?

    --
    Don't moderate flamebait as Troll. Know the difference or you will be Meta-moderated.
    1. Re:What a deal. by Anonymous Coward · · Score: 0

      buy a dreamcast ya can get bleem 4 the 3 best psone games, play with 4 players and dreamcast games are a steal. All this on a 32" TV :)

  51. Re:Wrong as usual by Anonymous Coward · · Score: 0

    How do you know M$ is losing money on the XBox? Can you cite any respectable sources?

  52. The future... by EuroChild · · Score: 2, Interesting

    What's the bet that Microsoft will release Xbox 2 and 3 in a short time period? They will stick to the PC mindset which says "why squeeze most out of a system when you can upgrade?" That will be the downfall of the Xbox (and its predecessors) because they won't push the system to it's full potential. The original playstation had every bit of power used in its later games. This is what allowed it to become top console because it was around for years without changing (originally the ps2 was to be released in 1998 and ps3 in 2001/ 2002 but this was obviously pushed back).

    Anyway, that's my 2

    --
    Does this make my brain look big?
    1. Re:The future... by Anonymous Coward · · Score: 0

      Yes of course, Microsoft are well known for being stupid.

  53. Re:the console industry sucks by Guppy06 · · Score: 1

    Where were you like two articles ago in the "Linux is Dying" thread? You're too busy over here trolling for console fans that you missed the obvious opportunity to throw in "BSD is Dying"

    Or maybe this is a new opportunity for you to start "Nintendo is Dying"...

  54. Er... by questionlp · · Score: 2, Informative
    The last time I checked, the Nintendo Gamecube was MIPS 5000-based, which is an enhancement of the 64-bit MIPS 4000 core.
    I think you have the Nintendo 64 and the Gamecube mixed up. According to Nintendo, the Nintendo 64 has a customized MIPS R4000 whereas the Gamecube has an IBM Power PC-based processor.

    I do not know what the main processor in the PS2 is derived from, but MIPS does ring a tiny bell.

  55. I disagree by Anonymous Coward · · Score: 0

    Capcom vs. SNK 2 is absolutely brilliant with a lot of depth in gameplay. I would say it as well is a true fighting game.

  56. Back to co-processors and 32Bit multitasking... by vortexau · · Score: 1

    the very first (though, only briefly in the marketplace) 32 Bit Game Console: the Amiga CD32 of 1993.

    It had (as did ALL Amigas) a swag of co-processors, and pre-emptive multitasking.
    A Mpeg1 cartridge allowed it to play VideoCD (remember that?)
    Three different add-ons converted it to a full 32Bit 68k computer that had FIVE different Video-out connectors.
    .

    --
    (David Bowman, EVA near HUGE Monolithic Win-PC in orbit around Jupiter) "My God - its full of Malware!"
  57. Close.... by Groo+Wanderer · · Score: 1

    All three firms are losing money on their consoles, though exactly how much is difficult to say.

    Wrong again! Microsoft is the only one doing this!

    Actually, the PS2 sells for about cost of manufacturing, but when you factor in retailer profit, sony loses a little per box, but it is not thought to be a major problem to sony. From what I hear, it is recouped in 2-3 games.

  58. Re:the console industry sucks by Kirby-meister · · Score: 1
    Well, if your idea of a good time playing games is looking at a pretty box as opposed to a "shitty-looking" box, then I guess you have a point.

    I can tell you something, though - my TI-99 and Apple ][ GS up to my Compaq machine and my current HP sure aren't grand looking boxes.

    I could also bring up tons of points about how "its the games that define the platform, not the looks of the console" and "the PC games have a different feel than console games, for a very good reason," but that would probably fall on deaf ears.

    In the end, it's all about personal tastes. If you can't appreciate such classics as Mario, Zelda, Gunstar Heroes, Chrono Trigger, and Actraiser, that's all good and well - just don't post troll material when the people that do enjoy these (and/or other great console titles) read something about the industry that entertains them.

  59. Deja Vu by Anonymous Coward · · Score: 0

    Deja Vu on /. last Thursday I think.

  60. Neo Geo not in the same league by blindauer · · Score: 1

    And why didn't NEO-GEO make it into the chart? That was by far the best console during that time...too bad it was $100 a game (or some ungodly price like that) and some ridiculous amount for the console.

    That's why, exactly: the system was $600 and the games were $100. The number of Neo Geo systems sold might as well have been zero, compared to the other systems. I happened to work at a video game store during that era. During the two years I worked there, I don't know how many Super Nintendos and Genesis systems I sold: easily in the thousands. Neo Geo systems? I personally sold 2.

    You're right, it was the best system at the time, but just not worth the price. People simply won't pay $600 for a game system. If you don't believe me, just ask Trip Hawkins.

    --
    --Bradley
  61. SBM3 by Anonymous Coward · · Score: 0

    I prefer Super Mario Bros. 3 anyday vs. Grand Theft Auto III. What about you? GTA III loses to SMB3 on everything including graphics and sound.

    1. Re:SBM3 by el_benito · · Score: 1

      Oh, go eat your Nintendo-brand cereal, grampa...

      NIN-TEN-DO! It's a cereal, y'know?
      --
      http://liquidben.com - Aspiring to an 'under construction' gif
  62. Re:Economist, Intelligibility. by Alan+Partridge · · Score: 1

    are also having a tough time together. What is one supposed to make of this:-

    "Sony's PlayStation business currently generates around 60% of the firm's profits. That figure has exceeded 100% at times."

    Maybe an economist can explain to me what more than 100% is supposd to mean in this context. WTF?

    --
    That was classic intercourse!
  63. Pedantic geeks by Anonymous Coward · · Score: 1, Insightful

    Amazing. Anyone would read the reaction to this article would think the Economist was a computer magazine.

    Look, the interesting stuff in the article isn't minor details about number of bits or whether Sony is losing more money than Microsoft, it's about how gaming is now a massive global industry, the trends and forces which have driven the industry on a continually upward curve, why that is and how the cycles work.

    I find reading Slashdot increasingly depressing at the moment because of the almost constant ability of the posters to miss the big picture.

  64. Re:Simple rationalisation Re:Consoles.... by Alan+Partridge · · Score: 1

    Amen to that. We don't need no stinkin' Microsoft. My desk has a PowerMac, a Dreamcast, a PS2 and a GameCube on it right now. That's the way it ought to be.

    --
    That was classic intercourse!
  65. Re:Economist, Intelligibility. by Airline_Sickness_Bag · · Score: 2, Informative

    It means that the other divisions at Sony operated at a loss, so the total profit at Sony was less than the profit generated by the Playstation related items.

    -asb

  66. Re:Economist, Intelligibility. by jweatherley · · Score: 1

    Maybe an economist can explain to me what more than 100% is supposd to mean in this context. WTF?

    Perhaps someone here would be able to explain.

    --

    --
    Reverse outsourcing: it's the future
  67. Re:Economist, Intelligibility. by Alan+Partridge · · Score: 1

    that still means 100% of the profit comes from Playstation, though. If Playstation makes $100M, and the total profit is $50M, than 100% of that comes from Playstation, no?

    --
    That was classic intercourse!
  68. Re:Economist, Intelligibility. by Alan+Partridge · · Score: 1

    I'd probably have to pay them to find out, though. And I bet I wouldn't understand the answer when it came - that's the point after all, isn't it?

    --
    That was classic intercourse!
  69. Re:the console industry sucks by DigitalHammer · · Score: 1

    My answer to both your questions is No, and No. And to your suggestion, No. Linuix is not dying, and I use it myself-RedHat.

  70. Familiar with economics? by brokeninside · · Score: 1
    Selling more units does not necessarily entail more prophet. It is quite possible that Nintendo could make more money selling fewer consoles at a higher margin than selling more consoles at a lower margin.

    As long as the volume of sales at a given margin is on track with the level of market share Nintendo wants, dropping price only serves to eat into profits.

    Also, I think that you misremember the Nintendo blurb. IIRC, they stated that they will eventually be able to sell the GC at $99 and still make a profit. This will be after the costs decrease as volume ramps up and economies of scale are achieved and (possibly) the system is re-engineered to be less expensive to produce.

    -l

  71. My beef... by Steveftoth · · Score: 2

    My problem isn't with emulators, or the people who use them to check out games. It's with the people who think that it's not stealing from the programmer and content people of the original game and the people who justify the theft of the original ROM.
    All the 12 year olds who never had a SNES now think it's their right to go back and steal all these games? I don't think so. I don't care if you do it, just do sit there and try to say that you have some right to do it just because the original company went out of business or some such nonsence. Making games is/was hard work, and people (especially geeks on /.) should respect that if they like to play games.

    Most video games are like pop music, they are shallow and only ment to be used for a short time. They don't really have depth or meaning. They are ment to distract you for a short while and then you move on.

  72. Re:Huh? - Bad Accounting by Anonymous Coward · · Score: 0

    I AM an accountant. Please bear in mind that "Profits from the PlayStation business" is a meaningless figure - they don't represent the actual economic value of those operations or the company as a whole. Rather, the company picks its own back pocket to fill the front pocket. They can do this internally, for budgeting, etc., but the second they start trying to bump up profits overall or by business segment via self-subsidy, well... they better get Andersen as an auditor. :) They would be delisted and probably sued if they did. Just FYI.

  73. The mouse/keyboard combo. by Anonymous Coward · · Score: 0

    IT makes sense if you think about it: (almost) all PC games rely on an pointing device that is fast and precise at the same time and the keyboard that provides the game with 100+ different buttons (or button combinations) to trigger actions with one touch of a key. On the other hand, a console provides an pointing device with a very reduced range (thus either low speed or low accuracy) and ~10 buttons. That's why conole games feel awkward when ported to (or emulated on) a PC, because the reduced amount of buttons makes no sense, and porting PC games to a console is hell, because you don't have enough buttons to map the game commands to (just think about how many buttons you'd need for something as simple as counterstrike!). Also, joysticks suck in comparison to mice in FPS or RTS games, because they will either be slow or inaccurate. Thus, little gets ported either way.