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Ubisoft CEO Says Next Gen Consoles Closer Than We Think
An anonymous reader writes "Ubisoft CEO Yves Guillemot tells CNBC that he believes the next generation of video game systems isn't as far away as the public has been led to believe. Guillemot noted that public demand for the best machine possible, as well as coming competition from companies such as OnLive could spur Microsoft, Sony and Nintendo to roll out new systems sooner than they want. That's not good news for publishers, though, as he says games in the next generation will likely cost $60 million to create."
Actually, what we are most likely going to see is incremental -- but significant! -- updates to the existing consoles. Updates that are large enough to be considered a "new release" but small enough not to be totally new architectures. We know, for example:
- Microsoft is planning an all-out marketing campaign + release schedule around Natal. It's not quite a new console roll-out, but Microsoft is treating it as such. Fully backwards compatible.
- Nintendo needs to get on the HD bandwagon, but doesn't necessarily need to push the envelope for HD gaming. Expect something that meets 720p criteria and is approximately [some smaller integer greater than 1 but less than 5]x as powerful as the Wii. Fully backwards compatible.
- Sony: not entirely clear. Open to suggestions. They have a PS3 slim in the works. No, not a new console. They released the PSP Go, dropping UMG support. That's interesting. The Cell is a pain-in-the-ass to develop for, but various shops are starting to get the hang of it. Maybe we will see a PS3, Mach II with 2 Cells, slim body and, of course, the now-mandatory motion tracking controllers.
The fact that future games are going to cost somewhere in the $60M ballpark is precisely why we will NOT see brand new architectures any time soon. No one, except maybe 1st party entities, is going to give up all of the applied dev resources to hop to an untested platform.
If you want to commence an interesting dialogue, I propose something like "What, exactly, constitutes a NEW console?"
This generation has seen console gaming taking the first painful steps into HD. Sony and Microsoft have lost billions on this step, while the comparibly simple Wii is far more profitable. So what are they going to do to increase profits for the next generation?
That's simple-next generation consoles will be entirely DLC-only. Forget about exchanging games, bringing your games over to a friends' house, etc. All games will be download-only and you'll max out your broadband cap by downloading a single game, unless you switch to a certain broadband provider that has a deal worked out with Microsoft so that M$ downloads don't count against your cap.
(-1, Raw and Uncut is the only way to read)
With Ubisoft putting out such fantastic titles such as "Imagine: Horsez" by the bucketload, they'll need to show me their full financials before I buy into the $60 million argument.
Developers had no problem jumping ship to the current gen and making money. Games went up $10 on average if you own a 360 or a PS3. They charge you for updates that used to be free, and they charge you to download unlock codes for maps, levels, game modes, costumes, and fucking furniture for your virtual corporate tool. Developers will work out plenty of ways to make morons pay through the nose to cover increasing costs.
OnLive as competition?
Yeah, and I hear that Apple is going to be seriously entering the game market aaaaaaaaaaaany second now.
This is a fucking joke.
The next generation will come around when the current players decide that it's strategically viable.
Let's look at the charts, shall we?
Nintendo has won. They want the current generation to last for as long as they are making buckets and buckets of money.
Nintendo will be the last of the three to go to the next generation (in terms of hard announcements). The ONLY possible scenario that would cause Nintendo to be the first to announce would be the motion controllers from MS or Sony taking away from Nintendo's profits. Nintendo would then make an announcement merely to fuck with the competitors' time tables. (Hint: Natal and Sony's tech will NOT save the 360 or PS3.)
Nintendo will be the last to announce.
MS is in second place, and will likely be the first to announce their next console. MS really want to push Natal to try and steal Nintendo's thunder, but despite their lines about Natal being the next generation XBOX, the fact is the only way MS can capitalize on it is if it's bundled with ALL systems. MS will push this generation as long as it can sell Natal units or Natal + 360 bundles. They need to recoup major cash from their warranty fiasco. MS likely wants Natal to get an extra 18 months to 2 years out of the 360. I don't think it'll be the hot shit they want it to be, but who knows.
MS will announce their next-gen hardware first.
Sony is fucked. I own a PS3 myself and enjoy it, but there's no denying that it simply didn't have the success of the PS2. I think five hundred and ninety-nine US dollars may have had a part to play with that. And with the 360 a year ahead, no one wanted to learn how to develop for the Cell. The bottom line is that Sony will announce the slim PS3 this fall and try to get some momentum, especially in Japan. Sony can capitalize on the release of Final Fantasy XIII along with the slim PS3 in Japan at the end of this year. I don't know if they can do the same thing in the US, especially since FFXIII is on the 360 as well. I expect Sony to keep trying for the "year of the PS3" until someone else makes an announcement. Sony has lost so much cash with the PS3 that they need to get as much mileage out of it as they can and can't risk jumping ship too early. Once MS reveals their hand, Sony will be free to show theirs without much risk of cutting off the PS3 before it's prime, or being one-upped tech wise or timewise for the next gen.
Sony will be second to announce.
The timeline as I see it is basically:
MS releases Natal and Natal + 360 bundles in 2010.
Sales aren't great.
MS announces E3 2011.
Details about the PS4 "leak" in the fall of 2011.
Sony announces E3 2012.
Nintendo teases E3 2012, in response to Sony's announcement. Nintendo won't have a full reveal until E3 2013.
Late 2013 MS launches.
Early 2014 Sony launches.
Fall 2014 Nintendo launches.
The dirty little secret of this generation is that the cost per unit revenue of the average game went down. Not up. And not by a little bit either.
The big studios want us all to think the cost to make games goes up with each generation. That justifies cost increases, and big-name licenses.
In reality, hundreds of millions of dollars in revenue has been generated by low to medium budget downloadable titles that have been the bread and butter of this generation of consoles.