Console Makers Worry Over Apple's Growing Competition

The NY Times is running a story about the effect Apple is having on the console gaming market, making Microsoft, Sony and Nintendo worry that consumers will be satisfied playing games on devices that aren't necessarily focused on gaming. Quoting: "The concerns highlight an accelerating shift away from hard-core games, which have traditionally driven console sales, to more casual ones played on cellphones. Of the 758 new game titles shown at the Tokyo Game Show, 168 were for cellphone platforms — more than twice as many as in the previous year. ... Apple's assault could even eat into sales of home consoles like Nintendo's Wii, Sony's PlayStation 3 or Microsoft's XBox, as game-playing quickly becomes centered on cellphones. Many in the industry say that Nintendo, Sony and Microsoft need to explore more radical changes to their businesses, including an emphasis on software rather than hardware and a better way for users to download games. 'As a platform, the cellphone has the biggest potential, because everybody owns one,' said Kazumi Kitaue, chief executive at another game maker, Konami Digital Entertainment. A family with three children might buy just one Wii or PlayStation to share, but those children will probably have cellphones of their own and download and play games, Mr. Kitaue said."

Comments

Except that the iPhone is a TERRIBLE game machine

[Anonymous Coward]

Seriously, have any of these people actually played any games on it? They are uniformly quite terrible. The lack of physical buttons is simply too big of an obstacle. Sure you can do some interesting stuff with the accelerometer, but at some point you want to be able to mash some buttons to kill the baddies and the in this regard the iPhone simply sucks ass.

Price

[fermion]

Most people do not want to pay $300 for a video game console, and then $10-20 a week to rent games, or $50 to buy. Nor do they want to pay $1000 for a PC rig to play the advanced games. I myself preferred my gameboy for playing tetris or golf or other games. An advantage is that the games were very reasonably priced.

I think what apple is targeting is the cash strapped parent who kids want multiple mobile devices. Though $200 for an iphone or iPod touch might seem out of line for a kids first device, if it can serve as the personal computer for browsing, email, and reading, can text, take pictures and movies, and play some games, it might seem a good alternative to phone plus a psp plus a music player, etc.

Like the mac,which made graphic processing affordable, the advantage is likely to be short lived. It should be simple to get something like a PSP and add a phone and some other trinkets. If that can happen,then people will likely migrate to it. One thing that I am surprised to see is that MS is not integrating the Windows Mobile, xbox, and zune technology into single product. The fact that we are talking about MS Windows 7 and a new Zune to me is incompressible. A Zune that has and HDMI port, but cannot play games, is simply silly.

Re:Except that the iPhone is a TERRIBLE game machi

[gbarules2999]

I have a feeling that demographic doesn't really strike a lasting profit, however. Nintendo is slowly falling and has been for a few months - could the Wii's marketing be wearing off? Could the iPod Touch face the same downward curve?

Besides, while the Wii has had phenomenal sales, the other two consoles have still gathered an audience - numbers that most markets would BEG to have. The positive thing about the button mashers is that they're growing (gaming is very mainstream, even in the Xbox/PS3 variety) and they don't stop spending money. I mean, if the Xbox 360 and its failure rate (which may or may not be fixed; who knows) can lead the charge through the High-Definition consoles in this economic decline, what will get those gamers to stop spending money?

Re:Except that the iPhone is a TERRIBLE game machi

[eonlabs]

Actually, I find that the mashing buttons to kill the baddies falls squarely on the Wii, while beer drinking FPS tournaments are 360's big thing, and heavily priced bizarre gameplay falls in the ps3 arena.

Regardless, the biggest issue seems to me to be basic economics. What is the cost of your entertainment. I've been interested in picking up a next gen console since the wii came out. I've played all three extensively, and at the moment, their price point is nearly identical. But for me to get one game out of a system, I need to drop about $300 for the base system WITHOUT any games, and $50 for a relatively old game (Mario Galaxy is still $50, 3 years in). With high quality games like Braid coming out on steam for $5-$20 the comparable initial drop of $20 to start playing and $350 to start playing is an obvious choice. Needless to say, despite the fact I've typically enjoyed console gaming for years, the higher price point for individual games combined with the cost of the systems (which haven't dropped to levels that I feel the purchase is justified), makes people who share this opinion swing away from them.

I still haven't swung toward cellphone games, because generally, across the board, I haven't found many of them that are on par with games from the super nintendo. Tetris maybe, but I haven't found a good solid push for thought provoking games for a cell. The biggest challenge for me is that the cost of old classics is finally pushing up into the current 'new game' price point that I have no interest in.

I'm mostly hoping this commentary will shed some light on the mindset of a, possibly atypical, non-hard-core gamer.