Consoles Push Online Gaming
1up.com has a look at how next-gen consoles will effect the future of gaming online. From the article: "There's little argument even amongst developers that Microsoft has a superior online service, but In-Stat analysts believe that Sony deciding on a pay-to-play service or free gaming is crucial to the expansion of online gaming. 'Microsoft is the only console maker so far to launch a paid subscription service,' says In-Stat analyst Brian O'Rourke."
Follow nintendo's, and pretty much every PC game, and offer online play for free. Mariokart DS online is quite fun. In fact something like 40% of people have played online which supposedly trumps the stats for every xbox game combined. And this is just a handheld device!!
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Go canucks, habs, and sens!
Yes, please Captain Obvious, show Red Flayer how to read the article. Also, perhaps how to read a business report.
Here's a hint for you. There is only one console player that is/has been steadily losing money, most gamers don't care to play online, and this article is talking about how Sony may decide on a free service to compete with Microsoft's for pay service.
Read, think, comment. In that order, please.
My high school geometry teacher had a sign on his wall that said "READY, FIRE, AIM". In the bottom corner, in small handwriting, was written "oops".
The article? Read it. It said almost nothing. Was referring to the summary.
FTA:"There's little argument even amongst developers that Microsoft has a superior online service, but In-Stat analysts believe that Sony deciding on a pay-to-play service or free gaming is crucial to the expansion of online gaming. "Microsoft is the only console maker so far to launch a paid subscription service," says In-Stat analyst Brian O'Rourke."
How does this say that Sony may have free online gaming to compete with MS's pay service?
The article says nothing like what you say it does.
Also, it doesn't matter if most players don't want to play online -- what matters is
(1) whether most players two years from now will want to play online; and
(2) where the most cash comes from, games sales or online subscriptions/fees.
So, please, get a clue yourself and bother to read the article, go back and read my post, and understand why it's such an obvious move by Sony.
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
affect/effect, meh! who really cares?
in this context:
effect = make gambling bigger
affect = make gambling bigger or smaller
the author probably wanted to use affect.
signatures are for fools with hands
(1) whether most players two years from now will want to play online; and
(2) where the most cash comes from, games sales or online subscriptions/fees.
My first reaction to this is that yes, it DOES matter if most players don't want to play online. For your argument to be valid, it should hold in all situations where most players don't want to play online. But let's say that only ten people want to play games online. Your argument doesn't hold then. Nobody would be making online games or creating Live-type subscription services (for profit, anyway). There would be no money in it.
But then you contradict yourself and say that it matters if most gamers want to play online. The only difference is, you think it matters in 2008. Why is this? Is 2008 the magical cutoff date after which no one is allowed to change their mind about whether they want to play online anymore?
And while it does matter to the games industry whether more money can be made through game sales ("box" sales) or subscriptions, it doesn't have any direct bearing on whether "online gaming" is profitable, or potentially successful. The reason for this is that both models have shown that they can be successful, and both models have shown that they can fail.
If box sales are more profitable (let's say 50.001%) than subscription sales, this doesn't mean that Blizzard is going to pull the plug on WoW next week. It also doesn't mean that online gaming is suddenly worth doing. Also also, it doesn't mean that online gaming is unfeasible. Look at FPS games, or even Guild Wars. They don't have subscription fees, and they're still going.
If subscription sales are more profitable than box sales, this doesn't mean that every console manufacturer has to copy Microsoft. My arguments here are practically identical to the ones above for box sales, save they are flipped around.
"The only difference is, you think it matters in 2008. Why is this? Is 2008 the magical cutoff date after which no one is allowed to change their mind about whether they want to play online anymore?"
I was pointing out that for someone like Sony to plan its business based upon today's market would be imbecilic. The game market is changing, and choosing to ignore online gaming would be beyond foolish.
"If subscription sales are more profitable than box sales, this doesn't mean that every console manufacturer has to copy Microsoft. My arguments here are practically identical to the ones above for box sales, save they are flipped around."
You're ignoring the fact that the goal is not to 'make some profit', but to 'maximize profits.' This means box sales + online sales.
There's also the issue of being seen as a tech laggard -- if you don't have good online capability, you WILL lose market share to competitors that do.
"Look at FPS games, or even Guild Wars. They don't have subscription fees, and they're still going."
You're looking at individual games, not at consoles. Different product, not comparable. There is no reason for Sony NOT to offer a subscription service, in addition to a free service (which would cost them money to operate, BTW -- so box and console sales would have to subsidize this). Why would they pass up a chance at more revenue, when they will be faced with extra costs?
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
Nintendo's WFC is going to be the most interesting online service. Halo + Live is great but at $6 a month you have to play a lot to make it worthwhile.
Compare this with (for example) Timesplitters 4 with strong WFC integration and an excellent map editor, along with the excellent Revolution controller. I can definitely see Revolution taking a huge chunk of the online shooter market. If Nintendo could get the Timesplitters team to make a Revolution-exclusive Goldeneye remake, they'd be set for this generation.
Also, developers would probably prefer developing for WFC over the other options. With X-Box you have to use Live if you want to support online play, and that means that only 10% of X-Box owners will actually play it. Pretty much anyone with a Revolution and an Internet connection will be using WFC, so you'd reach a lot more players.
The US Army: promoting democracy through unquestioned obedience
I agree that the goal of business is to maximize profit (in general). But it does not follow that this means "box sales + online sales". It might mean that a company decides to go one way or the other, or a combination. It all depends on what would maximize their profits. You're looking at individual games, not at consoles. Different product, not comparable. There is no reason for Sony NOT to offer a subscription service, in addition to a free service (which would cost them money to operate, BTW -- so box and console sales would have to subsidize this). Why would they pass up a chance at more revenue, when they will be faced with extra costs?
First, the fact that I use individual games as examples in support of a point does not mean that I'm letting the examples make the point for me. When I referenced these games, I was talking about the fact that it is possible to have profitable online gaming without relying on a specific business model or a combination of both box + subscription sales.
Also, the Internet helps in allowing any game developer or publisher to become a gatekeeper similar to what console manufacturers are. All that is required is a computer architecture that it is free to develop for. This means computer operating systems such as Windows, OS X or Linux. Valve Software has done exactly this with Steam. It is almost exactly what a console is, except done in software rather than hardware. Because of this, comparing physical consoles to games is fine, as they are basically the same thing now.
You say that there is no reason for Sony not to offer a subscription online service. But earlier you stated that the goal of business is to maximize profits. So offering a subscription service only makes sense if it allows them to maximize thier profits, right? This means that there is a reason for sony not to offer this service, and you gave the reason yourself!
Can I get some confirmation that SCE is actually losing money? I've heard that Sony is losing money, mostly because of it's crappy TV sales and what not, but SCE losing money seems a hell of a lot more like an unfounded rumour, considering the PS2 is not sold at a loss...
"This means that there is a reason for sony not to offer this service, and you gave the reason yourself!"
And yet I pointed out that online services have been demonstrated to be profitable when done properly. Missing out on this opportunity would be a big mistake for Sony, seeing as their pockets are very deep and can absorb the cost of starting up such a service.
You can twist my words all you like, but my point still stands -- Sony will be instituting some form of online service (which has been obvious to analysts for months now), and will likely in time convert the service to at least a pay-optional tiered system. While Sony has consistently stated that they will be using an 'open' online format, meaning game developers will retain the costs associated with and the revenues derived from hosting online play, Sony has always hedged it statements with "currently" or "as of now." They state that they believe pay-to-play online gaming presents too much of a barrier for most gamers, they also recognize the income potential -- SOE has done pretty well with offerings (until very recently).
Note also that Sony created a unified platform for 989 sports games in 2003, so they have some experience with running a unified platform. This was in response to MS gaining a pretty big lead in online sports gaming in 2002 and 2003, and to compete with the revamp of XBoxLive.
I don't think Sony will commit the same mistake again, allowing MS to establish a firm lead in onlinwe gaming. A distributed platform for online gaming may do just that, since Sony will not be able to control the quiality of online offerings for PS3.
The only reason that Sony wouldn't establish their own unified platform is because some developers (EA, for example) don't want to play by those rules -- but with MS already doing it, Sony would be the only other major option for EA -- who've stated in the past that they don't like MS's business practices and prefer not to develop for their consoles.
All in all, as the online gaming market develops, I'm 99% certain that console makers will need to establish a unified platform, that they charge for, in order to stay competitive. It's quite possible they'd also offer a distributed platform for online gaming, a la PS2, but Sony would be foolish to allow themselves to lag behind in online gaming, which is the fastest growing segment of the gaming market (in dollars, not in percentages -- I'm still a little unsure of the 'casual gaming' figures bandied about on the net.)
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
I must say that consoles are doing nothing new.
Nintendo's WFC is going to be the most interesting online service. Halo + Live is great but at $6 a month you have to play a lot to make it worthwhile.
Compared to other forms of entertainment, you certainly don't have to play a lot to make that $6 worthwhile. You might feel that you deserve free online play, and it might even make economic sense, but at the end of the day, people will find $6 to be a bargain even if they play only a few hours per month.
How does this say that Sony may have free online gaming to compete with MS's pay service?
This part right here:
[...] In-Stat analysts believe that Sony deciding on a pay-to-play service or free gaming is crucial to [...]
What they're saying is that game developers won't start moving their cross platform content online in a signifigant way until Sony makes a decision on whether they're going to have a for-fee Live style service, or something free and less cohesive.
Make sense to you now?
You made a statement, backed up by no evidence, that this was the case. So I'm just supposed to accept this without doubting you?
You can twist my words all you like, but my point still stands -- Sony will be instituting some form of online service (which has been obvious to analysts for months now), and will likely in time convert the service to at least a pay-optional tiered system.
I am not twisting your arguments. What I was referring to here was when you stated there is "no reason" for Sony to not offer an online service. Yet I pointed out the flaw in your logic. You stated (and I agree) that businesses try to maximize profit. Offering an online service may not maximize Sony's profit. This means that your point does not stand.
While Sony has consistently stated that they will be using an 'open' online format, meaning game developers will retain the costs associated with and the revenues derived from hosting online play, Sony has always hedged it statements with "currently" or "as of now."
I think you're reading way too much into this. It's far more likely Sony's just trying to cover their asses here. If they said "we're always doing it this way no matter what", developers might be discouraged from going with Sony, and other companies could have a field day if they change their mind. Unless you have evidence to back up your claim, there's really nothing to see here.
Note also that Sony created a unified platform for 989 sports games in 2003, so they have some experience with running a unified platform. This was in response to MS gaining a pretty big lead in online sports gaming in 2002 and 2003, and to compete with the revamp of XBoxLive.
Again, I think you're reading too much into this. If a game developer (989 studios) has a couple of games that are going to offer similar online functions, it would make it much easier (both technically and financially) to use a unified platform. This way, they have lower overhead when it comes to developing the tech for the service. And you also have no evidence that it was in response to what you claim.
I don't think Sony will commit the same mistake again, allowing MS to establish a firm lead in onlinwe gaming.
The thing is, MS hasn't established a "firm lead" in online gaming. All they've done is started a console service that has attracted (as of now) the most people. This doesn't mean that it's financially sound, nor that growth will continue. And PC games still have far more online players than consoles.
All in all, as the online gaming market develops, I'm 99% certain that console makers will need to establish a unified platform, that they charge for, in order to stay competitive.
Once again, where is the evidence for this? The arguments that you use have all relied on flawed assumptions or things that logically do not follow from your starting points, and sometimes a combination of both. Unless you can re-formulate your aguments to remove these problems, none of your points "still stand".
the playstation division is one of the few areas of the sony company thats turning a profit. to them the playstations are proven winners, thats why now they are able to push a lil harder in the research and development of their consoles [PSP, and PS3] than their competitors. whereas, before they relied on heavier marketing than thier competition. the funny thing is the fact that they are using the playstation brand to prop up their other divisions. ps3 selling blu-ray... psp selling umd sony movies... the ps3s 1080p is going to sell plenty of HDTVs for them.
i guess hes a little mixed up in regards to the well known fact that nintendo consoles are rarely sold at a loss. just because its consoles are sold at a loss doesnt equate to the division losing money. sony makes most of its profit through licensing and software sales.
they may take a slight hit on every console sold, but overall they make a profit during the course of each of those consoles' lifecycles. as a company sony is losing money, but not the playstation brand itself overall.
"You made a statement, backed up by no evidence, that this was the case. So I'm just supposed to accept this without doubting you?"
No, it's common knowledge that online game platforms can be profitable. If you doubt the common knowledge, go ahead and do the research yourself.
"You stated (and I agree) that businesses try to maximize profit. Offering an online service may not maximize Sony's profit. This means that your point does not stand."
My point is that it will increase Sony's profit, or perhaps decrease their losses. Unless Sony can't figure out how other companies have made it profitable to them (which I doubt, since they've demonstrated that they can do it themselves), it will be a profitable venture.
"And you also have no evidence that it was in response to what you claim"
Do a quick Google, particularly for articles in 2003. It's repeated enough in the professional literature that I have no problem accepting it as being true. Also, look at the timing of the XBoxLive update and Sony's 989 platform.
Please, if you're going to read every sentence so critically, do some research yourself -- after all, I'm assuming that you must have some knowledge on the subject, or you wouldn't be disputing my perspective, right? I'm not going to compose an essay for you, I expect that you would bother doing a little research on your own if you disagree that much.
"Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
I agree that it's common knowledge that online game platforms can be profitable. That's not what I'm disputing. What I'm disputing is that an Xbox Live-type service can be profitable. I've already made the argument and linked an article in one of my earlier replies to you that backs up my doubt.
My point is that it will increase Sony's profit, or perhaps decrease their losses. Unless Sony can't figure out how other companies have made it profitable to them (which I doubt, since they've demonstrated that they can do it themselves), it will be a profitable venture.
And you have no evidence that it will increase Sony's profit, as it is still uncertain whether Live-type services are profitable. See above.
Also, Sony has not demonstrated that it can do the type of service that Live does. If you are referencing 989 sports, that is one developer, and also owned by Sony itself. Xbox Live is a service that any game developer can use for online play (theoretically, at least. I don't think they'd let Sony connect PS3s to it). If you're referencing something else, it would be nice to actually say what you're talking about.
Do a quick Google, particularly for articles in 2003. It's repeated enough in the professional literature that I have no problem accepting it as being true. Also, look at the timing of the XBoxLive update and Sony's 989 platform.
Please, if you're going to read every sentence so critically, do some research yourself -- after all, I'm assuming that you must have some knowledge on the subject, or you wouldn't be disputing my perspective, right? I'm not going to compose an essay for you, I expect that you would bother doing a little research on your own if you disagree that much.
The most obvious flaw with your reasoning here is that all the arguments you've used so far have not been backed up by any links or references to people who actually know WTF they're talking about. Why should I have to do your research for you? You are making all these claims, yet you won't back them up with things like press releases, industry analysis, or interviews.
I certainly hope you never have to either do any schoolwork or get a job. When your teacher or boss asks you how you came to a conclusion and you tell him/her to "go do the research yourself", you won't find yourself successful for much longer.
I am not implying one of us is smarter, just that when someone questions you, you should have either a good explaination, or other evidence to back up your claim. All of your explainations so far have relied on speculation or flawed reasoning, and you've shown no outside evidence. So unless you correct these problems, your arguments are not really plausible.