On The Failure Of Online Console Gaming
Thanks to GamesAreFun for their editorial discussing why online console gaming isn't ready for the masses. The author pinpoints his set of reasons for this alleged "niche" appeal, including not enough broadband penetration ("the fact remains that gaming on dial-up is excruciatingly slow"), lack of online titles with mass-market appeal (citing "a pattern that precludes the more casual gamer from caring about online console gaming"), and limited modding abilities for console titles ("players will become bored... playing the same maps over and over and over again.")
Maybe people are smarter than all that?
One of the key failures is that many of these online games are ports of existing PC titles. The vast majority of online games are RPGs of FPSs, both genres that work better on a PC. I imagine running around XBox Unreal getting you're arsed kicked by pimply kids on their PCs, just because they have a far better method of control would get old real quick (round about the 10th time you got shot in the back whilst try to turn with a thumb stick)