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The Consoles Are Dying, Says Developer

hypnosec writes "While you might have often heard that PC gaming is dying — detractors have been claiming this for over a decade — one developer has a different take: that consoles are the ones on the way out. In a 26-minute presentation at GDC — available now as a slideshow with a voice-over — Ben Cousins, who heads mobile/tablet game maker ngmoco, uses statistics of electronic and gaming purchases, along with market shares of developers and publishers from just a few years ago, to come to some surprising conclusions. The old guard, including the three big console manufacturers — Sony, Nintendo and Microsoft — are losing out when compared with the new generation of gaming platform developers: Facebook, Apple and Google. With the new companies, the size of the audience is vastly increased because of their focus on tablets, mobile and browser-based gaming."

31 of 309 comments (clear)

  1. Misleading headline by iampiti · · Score: 5, Insightful

    Quoting the summary: "The old guard ...are losing out when compared with the new generation of gaming platform developers".
    This clearly doesn't mean that the consoles are dying, it simply means that the smarthphones and tables have a installed base much greater than the traditional consoles and they managed to get a bigger audience. Mobile games are also simpler and cheaper than traditional "hardcore" console/PC games.
    At the end it's a similar story to that of the Wii: Someone found a way to reach a much bigger audience than that of traditional games and they made a ton of money in the process.

    1. Re:Misleading headline by Grishnakh · · Score: 4, Insightful

      Exactly. The developer in the article is a moron; there's simply a larger audience for games now, with people playing them on their phones who otherwise would play a sudoku game, or no game at all. You can't play an Xbox/PS3 game when you're riding in a car or waiting in line or whatever, at least not without going to some extreme measures, well above and beyond simply carrying a handheld device with you in your pocket and taking it out when you feel like a diversion. But your phone you always have with you, so it's convenient to play a simple game on when you're out and about. And, these are different markets. There's lots of non-"gamer" people playing Angry Birds now on their phones who have zero interest in the latest FPS or whatever game that's available on consoles. This doesn't mean the console (or PC) gamer market is shrinking. It may or may not be, but the rising popularity of Angry Birds and other simple mobile phone/tablet games is irrelevant to that issue. No one's abandoning Crysis so they can go play Angry Birds instead.

    2. Re:Misleading headline by Anonymous Coward · · Score: 5, Insightful

      OK. enough silliness.

      First, you didn't read the title of his presentation.

      "When the Consoles die..."

      He is using the word "DIE", not gradually shift or decrease. This is a hint that he is going the Tabloid route with
      sensationalistic (no credibility) headlines just to grab your attention.

      Second, he never shows that he can make more money in the mobile market. He does show statistics
      which indicate that the number of games being downloaded or sold for mobile devices is increasing. However,
      he could not link that to increases in money. The problem is that many mobile games are FREE or a dollar.
      It does not show anyone making profit. He has one graph showing the console industry at about 20 billion dollars.
      He does not have a graph showing the profit for tablet and phone games.

      In particular, he notes that there were 500 million downloads of Angry Birds. However, on ITunes, Angry Birds
      is a free game! This is not making massive profit.

      In summary, he is saying this:

      "Massive Downloads means Massive Profit"

      I am saying: "No, it doesn't"

  2. Ridiculous headline by stringman5 · · Score: 5, Insightful

    If your share is the market is decreasing but the overall market size is increasing at a rate faster than your share decreases, then you're not dying, you're flourishing.

    1. Re:Ridiculous headline by headLITE · · Score: 3, Informative

      In the slide show he's, however, showing absolute figures that are shrinking.

      He does also argue the shrinking relative market share point because that's, frankly, what you're interested in as a game developer: Where can you make the most money with games? When you can make 10% more year-over-year in one market but 200% more in another then you'll go for the 200% growth market.

  3. Entertainment Center = Fewer Games by Fulminata · · Score: 3, Interesting

    I used to play a lot of games on my Xbox 360, but when we got Netflix a few years ago it moved from my study to the living room and now my wife monopolizes it to watch Netflix, and I'm playing my games on the PC. A console can only be used for one thing at a time, and when you keep adding more things it can do, it ends up spending less time being used to play games.

  4. Wrong, Wrong, Wrong!!!! by Anonymous Coward · · Score: 5, Insightful

    This is just like saying movies are going out because tons of people are watching YouTube videos. Just. Plain. Wrong.

    Sure, there is money to be made in those new markets. The very best iOS/Android/Facebook games make dozens of millions in profit. Great. But the best console games will make that in a single day. Yes, they have the numbers: there are hundreds of thousands of apps in the iTunes Store. Awesome. But 98% sell 0 copies (I'm not talking a few thousands, I'm talking about zero, nil, nada). What about ROI? A competitive mobile game can be done for $100.000 (yes, and that is the absolute minimum to be competitive, this is not 2009 anymore) and would need about $250.000 in marketing expenses (it is that, or hitting a jackpot). One such game can expect to get 20.000 downloads a day (it MUST be free, of course) and a conversion rate of about 0.5% to 2% if it is good. Good luck getting that money back, not to mention making any profit.

    The new markets are bad business. They are headline material if you are one of the few lucky ones who hit a jackpot, but remember: the jackpots are jackpots. Those lone developers or startups are the lucky ones, and while there is always someone who will get the lottery price for sure, if you get all your money and invest in lottery, you're an idiot. There is only one good thing about them: no entry barrier. The console videogame market stagnates because it is controlled by a few players who are adverse to innovation and mostly rehash the same product over and over. Facebook or mobile allow anyone to enter and go wild. Just like the computer game market of the 80's, that means loads of crap and some rare gems that couldn't be possible otherwise.

    There is something very wrong with the console market. Publishers with absolute power cater only to the mass public and ignore niche or progressive sales, while developers get zero money from the jackpots and can't raise or grow if it is not dancing to the whim of the same publishers. But don't forget it, the new masters are much worse. The App Store is not some place you go to get rich, it is the place you go to die.

  5. The market is changing by Leo+Sasquatch · · Score: 4, Insightful

    just like when it became cheap to do printing. Now the market for print covers everything from comics, to lifestyle magazines, to Booker Prize winners. Sometimes I want to sit down with a novel, sometimes I want to see what Batman's up to this month, sometimes I'll flick through an issue of Motor Boats and Yachting because that's the only mag in the dentist's waiting room.

    The concept of a single, clearly- and rigidly-defined platform will always be attractive to developers. Raw horsepower will always make a difference to any game more complex than Tetris. Control systems will always be a beast to implement on something that has a touchscreen and a single button, unless the control system is implemented first, then the game built around that. It is not possible to replicate the 11 buttons, twin joysticks and a d-pad of an X-box controller on an iPhone.

    I think it's good that the market is fragmenting. It won't stop the big studios making AAA-titles. It will help the indie developer with the next great idea get her game made in Flash, or on Android, or running directly in the browser. It might help stem the unearthly tide of shovelware that infests the pre-owned racks at GAME. And although, to an extent, I decry the loss of geek cred that comes with the fact that now everybody and their dog plays some sort of video games, the fact that every woman I've met lately plays Farmville does make it a useful ice-breaker...

  6. Re:hardware limits by Anonymous Coward · · Score: 4, Insightful

    The technology is where consoles have often been ahead of PCs

    What are you on about? The outdated tech in your console comes nowhere near the level of technology in my PC.

  7. Re:hardware limits by Anonymous Coward · · Score: 4, Insightful

    The advantage of consoles has never been processing power. The advantage is developing for a single platform with a known configuration. PC game developers (like myself) have to worry about a wide range of video hardware. Console game developers can fine tune for their platform.

  8. Re:Okay. by zAPPzAPP · · Score: 3, Insightful

    Nowadays you have to upgrade a PC every 4 years or so.

    Most PC titles are being made for consoles and PC at the same time and consoles are the lowest common denominator. So titles don't really get any more demanding in terms of hardware until the next generation of consoles come out.

  9. Power consumption by FranTaylor · · Score: 5, Interesting

    XBox 360 and Playstation 3 use absolutely horrifying amounts of electricity compared to devices like AppleTV

    XBox 360: 121 watts to watch a DVD, up to 170 watts while gaming

    New PS3: 70 watts to watch a DVD, up to 80 watts while gaming

    Apple TV: maximum rated 6 watts

    And then throw in the added energy required by an air conditioner to remove all that heat from your house.

    Granted AppleTV has less horsepower than either game system, but their power consumption is WAY out of line, given what can be done with modern hardware.

  10. Not a direct threat to consoles by second_coming · · Score: 4, Interesting

    I'd say tablets and smartphones will make dedicated mobile gaming platforms (Nintendo DS, PS Vita etc) obsolete but will have very little impact on console and PC sales where gaming is concerned. What he is talking about is casual gaming which although making shitloads of cash is not what the average console and PC gamer would class as gaming. What smartphone/tablet game companies are doing is tapping into a userbase of people who wouldn't normally play games as they wouldn't buy a device just to play games, but as they have the devicealready they then start to look at what can be done with it.

    This is why most of the type of games you find on the iPhone/iPad/Android devices are aimed at killing a few minutes while standing waiting for a bus not taking up hours and hours which is what most traditional gamers want/expect from their games.

    My wife is a prime example of the new breed of smartphone/tablet/browser 'gamer'. I have had a PC and various gaming consoles for the last 20 years and she has never shown the slightest bit of interest in gaming as it took up too much time and had to be done at home. Now she plays games like Angry Birds on her smartphone and Facebook.

  11. Re:hardware limits by Chase+Husky · · Score: 3, Insightful

    Yes, I could imagine playing Gears of War 3, or any other similar, graphically-intensive game, on a tablet. However, I wouldn't expect to physically interact the tablet whilst doing so.

    To elaborate on the first part, as smart phones and tablets become more complex and powerful, they will begin to encroach and eventually overlap with the processing and graphical capabilities of consoles. (The PowerVR G6200/G6400, let alone NVIDIA's Tegra offerings and the state-of-the-art devices in the research literature, are a testament to this, from a GPU standpoint. From a CPU one, the quad-core ARMv7 Cortex-A15 handily beats out the triple-core IBM Xenon in the Xbox 360 and the Cell processor in the PS3, in terms of MIPS.) As this happens, there will only be a handful of relatively minor reasons, most of which concern how to handle older, potentially out-dated devices, as to why we could not expect to see quality games ported over to these mobile platforms, let alone have studios change focus and solely push their titles for them.

    Now, as for actually playing the games, it's easy to imagine a few scenarios for how this could be done for a variety of titles. One that would work well, in general, would be to interface the tablet or phone with a TV, either through an HDMI connection or perhaps wirelessly through something like the Apple TV, and rely on one or more Bluetooth controllers for input. In this instance, the device is functioning like a console; however, once you're done playing, you can just grab it, take it with you, and revert back to using it for a multitude of other purposes.

  12. Re:What does netcraft have to say about this? by ozmanjusri · · Score: 4, Funny

    Minecraft would be more credible.

    --
    "I've got more toys than Teruhisa Kitahara."
  13. Pity so few understand statistics by SmallFurryCreature · · Score: 4, Interesting

    Can you go from 100% of the pie to 10% and STILL end up with more pie? Yes, you can! Simply increase the size of the pie. Granted, for that scenario, you need to increase the pie a lot but that is what has been happening in computer gaming.

    The earliest computer games were the domain of people who had access to mainframes, this was only a small subsection of the population. Arcade games made them more available but the nature of arcade games restricted it to children. Home computers (Atari, Commodore, Sinclair) changed this again but the machines were very expensive and frankly the games just weren't that accessible. You might have fond memories of text adventures, but you are a freak.

    Home arcade machines where cheaper and easier but playing pong can only attract so many people for so long. The early machines showed a promising future but the present was graphics where you needed a manual to tell you what you were looking at.

    But slowly, this changed, computers became smaller and cheaper while the games got better and better. And so, more and more people buy gaming hardware and play games.

    Flash games haven't replaced traditional PC games, they added to the number of people playing games on a PC. Tablets haven't taken away from other platforms, they added gamers. IF there is a slowdown in either the PC or big console market then it has far more to do with those markets on their own. Gosh, do we REALLY need another 12yr old FPS with angry rapper soundtrack?

    Women gamers might not be that intrested in games so obviously aimed at 12 year olds. Are there many female gamers? Google for The Sims 3 MODS... this is females not just PLAYING a game, but MODDING it with no official support, just command line tools. FEMALES! Modding!?! But where are these females catered for on the consoles? Barbie playhouse? Where is the mature rated female game? (As in subjects that attract adult females, not 12 yr old boys, as amazing as it seems, for some weird reason most women are not terribly excited by seeing polygon boobies with full jiggle animation. Probably because the spoiled women can play with a real set whenever they want. INEQUALIY! Demand fair distrubution of boobie playtime NOW!) Anyway... I didn't believe that women really played PC games until I found myself in a lotro raid of my guild and I was the only male. And that was a 12 man... 11 woman, 1 man raid.

    But you shouldn't take this the wrong way, just because a lot of women game as well, does NOT mean ALL games have to be women friendly. Different games, for different markets. It ain't so hard to understand. Just because hamburger restaurants sell a lot of hamburgers doesn't mean every single restaurant in the world has to be a hamburger joint. In fact, you might find that if you did this, the revenue for restaurants would fall. Angry birds is a top selling game but if that was the only thing on offer, the market would quickly collapse. Yet, that is exactly what has been happening in the big console market. The market is completely dominated with Call of Honor Gears Halo 56. MS knew this and desperately tried to attract japanese developers so they would at least get some JRPG action on the original xbox. It failed and the original xbox was a dismal failure in Japan. It was a far bigger success in the west... with in the segment of the population the games catered for.

    I don't even think tablets will kill the Vita and DS. Those handholds are doing their own killing. Look at the line-up for the Vita? What is there? The majority of games are extremely expensive versions of games you can buy for a buck on a tablet or even try for free. Yes yes, wipeout might be some kind of classic (read milked) title but its appeal is rather limited in terms of segment of the population. It also frankly ain't suited for mobile gaming where perfect control, perfect vision, long load up times etc etc are just not on.

    Neither are dark games, 99% in the sun it means you don't see shit. Where are the light deep story games that don't mind if they are

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  14. Re:Okay. by L4t3r4lu5 · · Score: 4, Interesting

    Nowadays you have to upgrade a PC every 4 years or so.

    Quite. I still find my Q6600 (stock clock), 4GB DDRII, and 8800GTX (before it died) ran almost any game I could think of at my monitor's native res of 1920x1200 with reasonable graphics detail. In fact, my upgrade was going to be a second 8800GTX from fleabay (I got burned by the seller; Sold me a known faulty card he claimed to have repaired, I found out afterwards. Fuck eBay for not understanding that). Ended up with a HD6950; Good card.

    I wouldn't be surprised if I run this rig until the hardware dies.

    --
    Finally had enough. Come see us over at https://soylentnews.org/
  15. Re:hardware limits by Anonymous Coward · · Score: 5, Insightful

    These arguments can be summed up as:

    "Books are dying, magazines are more convenient and require less mental effort therefore magazines will replace books"

  16. Re:What does netcraft have to say about this? by headLITE · · Score: 3, Informative

    In that case... there's a Minecraft Pocket Edition that runs on Android and iOS phones. :)

  17. So the maker of cheap crap thinks cheap crap win? by thetoadwarrior · · Score: 3, Insightful

    In my mind this is a company that has made its business out of "borrowing" ideas from the likes of Nintendo and making cheap knock-offs to sell on facebook or mobiles.

    If consoles go away where is this guy going to get his inspiration for his games? If I was in the business of making cheap throw away games with minimal profits and no real appreciation from customers I'd be busy trying to convince people my way was the future too.

  18. Re:hardware limits by msobkow · · Score: 5, Insightful

    I agree with most of your points, except for the presumption that you're playing a "real-life friend". Other than a dozen people, I've never met any of my Facebook friends in real life.

    Furthermore, none of the "social games" I tried on Facebook during my first year were "social" at all. There was absolutely NO interaction with other players, team tactics, or any of the other aspects of a good round of an FPS with a headset.

    When I see my friends playing against their buddies on their XBox or PS3, they're using headphones. They're coaching each other. They're cursing each other. They're talking to each other. It's a FAR more "social" game environment than Facebook has ever been or could ever dream to be.

    --
    I do not fail; I succeed at finding out what does not work.
  19. Re:hardware limits by Darfeld · · Score: 3, Interesting

    Facebook games are getting better at the "game" things I guess, but their is still work to do on that. The social aspect is more than often a lure. It has worked pretty well, but it really gets old after a bit. They are good browser based games with good social aspect though, but none that have to thank fb for that.

    For Google/Apple's games, they work because they open "video games" to a broader audience. but games you can pick up and put down in a minute aren't what a gamer will look for. Gamers won't disappear just because of casual game on phone. It's just not the same usage.

    Wii/Xbox/PS3 have specificities, and it's up to the game designers to figure what support is suited for what kind of game. I really don't enjoy action games on a phone, the command are crappy and most of the time they hide the screen (you know, because of the tactile thing) and I sure won't buy scrabble for my Xbox. As for the networking aspect, things are going in the right direction I think.

    PC has the most wide panel of possibilities from controllers to social things and Internet connection, so it gives it an edge. But my guess is no platform is going to disappear, they'll just radicalize.

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  20. Re:What does netcraft have to say about this? by hairyfeet · · Score: 5, Insightful

    Well if you are gonna go by just raw usage data then i'm sure they would tell you that office and accounting programs are being replaced by this incredible new technology called "the fart app' since its number of users i'm sure makes Quicken, Quickbooks, and all the office suites look like penny ante apps.

    But of course that just highlights what's wrong with using this kind of data, the "games' they describe are simply what is called 'time wasters" that someone can use at the average office without installing anything and thus getting fired. The boss at the last shop i worked at loved to fire up freecell on any machine brought in and see how many hours had been spent in it, some machines had literally thousands of hours in it. did that mean these people were prepping for some freecell tournament? that they just REALLY loved that card game? nope it meant the IT dept had blocked the web based time wasters but the MSFT standard games were accessible so that is what they used to waste time.

    In the end these "games" are having little to no money spent on them by the users, who rarely have any loyalty to the games at all and will walk away at the drop of a hat for the next time waster that catches their eye. Just because a shitload of people run something doesn't mean they WANT to run that thing, it may simply mean that is all they can get past the IT dept at work. My GF has hundreds of hours in those FB games but that doesn't mean she gives a crap about them or would spend a single cent for the whole lot, it just means she has a lot of down time in between busy periods at work so she uses them to kill time, that's all. In the end they are for her no more worth caring about than solitaire, its just something to do that's all. if youtube wasn't blocked at her work she'd probably be watching videos instead.

    --
    ACs don't waste your time replying, your posts are never seen by me.
  21. Re:hardware limits by HaZardman27 · · Score: 5, Funny

    Xbox LIVE is a better social experience than anything Farcebook could deliver on

    If by social experience you mean 12-year-olds and 20-somethings that act like 12-year-olds screaming in your ear and hurling obscenities as though it makes them more mature, then yes, Xbox Live is a wonderful social experience.

    --
    Apparently wizard is not a legitimate career path, so I chose programmer instead.
  22. Re:hardware limits by BasilBrush · · Score: 3, Interesting

    I agree with most of your points, except for the presumption that you're playing a "real-life friend". Other than a dozen people, I've never met any of my Facebook friends in real life.

    I think you're unusual. Most people use facebook to keep up with real life friends and family, old friends from school who now live far away, people they met on holidays or courses. People that you want to keep in touch with, sometimes daily, sometime just from time to time.

    When I see my friends playing against their buddies on their XBox or PS3, they're using headphones. They're coaching each other. They're cursing each other. They're talking to each other. It's a FAR more "social" game environment than Facebook has ever been or could ever dream to be.

    Casual gamers don't really want that. If they wanted a pre-longed real-time conversation with a friend they'd pick the phone up or skype or chat. Short, non-real time contacts fit the bill better for casual social gaming.

  23. Re:hardware limits by Tmann72 · · Score: 4, Insightful

    This is just one kind of experience. Mine is more like this... I get home and jump on xbox. I invite all my buddies to the chat channel that holds up to 8 people. We all dick around gaming on our own while chatting it up and generally having a good time "hanging out" or we all hope into a multiplayer game and kick some ass. I have both a ps3 and an xbox, and I exclusively use the xbox due to the chat room feature. Its the most social system I use on a regular basis, and nothing on facebook ever gets me close to what I achieve on the xbox.

  24. Re:hardware limits by Krneki · · Score: 3, Informative

    that's because non of this matter, so the buyer didn't give a crap about multi core CPU or CPU-GPU bandwidth. Why buy 6 core CPU when even today half of the game still don't use more then 2 or why use PCIEx 3.0 when even the fastest card don't saturate the PCIe 2.0? No, the truth is the consoles are nothing more then old PC, sure they have some minimal technical differences, but if they would make a game run faster, you can bet the PC would have it too. PC are the state of the art when it comes to hardware and software development, consoles are lagging behind even when just released, let alone after a couple of years.

    --
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  25. Re:hardware limits by Talderas · · Score: 4, Insightful

    There's no response but "Duh."

    Market share is a percentage. You can increase market share by either stealing customers from the competitor or increasing the total number of customers. The former affects the volume the competitor deals the latter does not.

    Let's say the gaming market consists of 25 people. Right now 10 people play mobile (40%), 9 play consoles (36%), and 6 play PC (25%). Given the ease of access and low investment cost for mobile games the gaming market has increased to 40 people. 21 play mobile (52.5%), 12 play consoles (30%), and 7 play PC (17.5%) Mobile gaming's market share has increase while console and PC's have decreased yet all three gained new customers.

    The real point though is that mobile gaming isn't competing with PCs or consoles. It presents a vastly different gamescape than the other two options and has been bringing in customers that weren't previously console or PC gamers.

    --
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  26. Re:What does netcraft have to say about this? by binarylarry · · Score: 3, Insightful

    High DPI isn't a huge deal for games.

    Reading, web browsing, content creation... sure. But not for games.

    --
    Mod me down, my New Earth Global Warmingist friends!
  27. Re:What does netcraft have to say about this? by Tmann72 · · Score: 3, Insightful

    You are incredibly inaccurate in your assumption that the new processor and screen resolution will give the Ipad 3rd gen a competing chance against dedicated gaming consoles. Even our current generation, which is now over 6 years old, still blows away the graphics from the 3rd gen ipad. The fact is the ARM architecture, while gaining an impressive following and getting more powerful with each iteration, simply doesn't have the power to actually compete. These are low power devices with limited batteries and you are trying to say they stand up to or even beat the console. The consoles of course are very high wattage devices designed to use every bit of juice they want to run circles around your little ipad with its 3 core 3.2ghz xenon processor and dedicated graphics card at 500mhz. The only thing the ipad has over the current console generation is memory. The xbox tops out at 512mb at 700mhz. This is probably the single most limiting factor of the current console generation, but not limiting enough for the puny ipad to have a chance. Full disclosure, I prepordered the ipad 3. I love the little device, but there is just no justifiable leg to stand on to say it has anywhere close to the graphic capability of a dedicated home console.

  28. Re:hardware limits by Mashiki · · Score: 3, Interesting

    Back in my day we called this a "lan party" or did this via some other form online networking via the PC. Meh consoles, that's what I think. I don't think I've used or played on one since zelda was released and I don't miss it at all.

    --
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