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Console Manufacturers Want the Impossible?

Phopojijo writes "Consoles have not really been able to profitably scale over the last decade or so. Capital is sacrificed to gain control over their marketshare and, even with the excessive lifespan of this recent generation, cannot generate enough revenue with that control to be worth it. Have we surpassed the point where closed platforms can be profitable and will we need to settle on an industry body, such as W3C or Khronos, to fix a standard for companies to manage slices of and compete within?"

50 of 316 comments (clear)

  1. Really? by Anonymous Coward · · Score: 5, Insightful

    Quite a bold statement that the console market isn't profitable, where is your source for this? MSFT posted Q1 2013 earning for the Entertainment and Devices Division:

    "generated revenues of $2.53 billion for the quarter, up 53 percent from the same period a year ago. The division includes the Xbox business and Microsoft said there is now 46 million people signed up to use its Xbox Live online service, up 18 percent from the same period a year ago."

    Seems pretty damn lucrative to me...

    1. Re:Really? by Anonymous Coward · · Score: 4, Informative

      You can't prove something is profitable by making a statement about its revenues. If you look at the divisional earnings over the last 5 years it hovers around the $0 mark - profits in some quarters, losses in others - and the console segment is the least reliable earner in that division.

    2. Re:Really? by gsslay · · Score: 4, Insightful

      Article summary should be re-written;

      Console market isn't profitable in the way that some gamers would like.

    3. Re:Really? by thunderclap · · Score: 2

      Article summary should be re-written;

      Console market isn't profitable because there are few games being made gamers want.

      Fixed that. Seriously, Xbox one is being marketed not as a gaming console but a dvr.

    4. Re:Really? by slim · · Score: 2

      XBone marketing has barely started. There's been one press conference about PVR / social media / blah. There's been stuff about CoD. And that's it.

      Of course there will be games. Lots of them. Whether they're games worth buying an expensive new system for, we'll have to wait and see.

    5. Re:Really? by Parker+Lewis · · Score: 3, Insightful

      And how about the loses from the beginning of this generation? The article talks about the entire generation, not only a specific quarter.

    6. Re:Really? by Xest · · Score: 2

      "compared to what? Think about this. An xbox is useless if unconnected to the internet. Same for a PlayStation 3."

      What? Why are they useless? They both still function perfectly, just like with a PC you can't enjoy online content like multiplayer gaming or watch things like iPlayer or Netflix that stream video that's all.

      Neither the XBox 360 or PS3 have an online requirement for anything other than online content. The only exception I can think of is if you want to download Live Arcade games on, say, a friend's console and then continue to play them after disconnecting from XBox Live.

      "Very little games."

      There usually never is more than 10 - 30 on release of a console. I think the XBox One said 15 exclusives on release and then presumably a whole bunch of non-exclusives and possibly even some arcade games, so all in it seems about standard for a console release. Not sure about the PS4's launch lineup though.

    7. Re:Really? by tgd · · Score: 4, Informative

      Article summary should be re-written;

      Console market isn't profitable because there are few games being made gamers want.

      Fixed that. Seriously, Xbox one is being marketed not as a gaming console but a dvr.

      Except that its:

      a) Not being marketed at all yet
      b) Explicitly described as not having DVR capabilities

      So you're wrong on both counts. Guess you've got a case of the Tuesdays.

    8. Re:Really? by mjwx · · Score: 5, Interesting

      Quite a bold statement that the console market isn't profitable, where is your source for this? MSFT posted Q1 2013 earning for the Entertainment and Devices Division:

      "generated revenues of $2.53 billion for the quarter, up 53 percent from the same period a year ago. The division includes the Xbox business and Microsoft said there is now 46 million people signed up to use its Xbox Live online service, up 18 percent from the same period a year ago."

      Seems pretty damn lucrative to me...

      That assumes that MSFT have not costs.

      It took MSFT 3 years for the Xbox360 to stop being a loss leader (each console sold for less than what it cost MSFT to make it), it took Sony 5 years for the PS3 to stop being a loss leader. Neither have paid back the initial R&D costs.

      Sure Sony and Microsoft have lots of nice shiny revenue, but anyone in business will say "Revenue is vanity, profit is sanity". The PS3 and Xbox360 have been huge money sinks for MS and Sony.

      But I feel we're forgetting someone.... Someone who made a lot of money...

      Oh hai NINTENDO.

      Nintendo made a metric buttload of cash, paid off their R&D very quickly and never sold the Wii as a loss leader. More than that, the Wii was hugely successful. Released last and outsold Microsoft and Sony's combined console sales for 3 years. Why, because they didn't pretend the console was a PC. They made a console that for the first time since the Super Nintendo was actually fun to play. That's how you make money in the console world. Sony and Microsoft need to learn it's not about how powerful your console is, it's about how fun and accessible it is. It seems the PS4 and Xbox One have given this generation to Nintendo by default (as the Wii-U is a mediocre console).

      To say that "consoles" are unprofitable is really to say "Microsoft and Sony consoles" are unprofitable. Nintendo consoles were very profitable.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
    9. Re:Really? by Trailer+Trash · · Score: 2

      Article summary should be re-written;

      Console market isn't profitable because there are few games being made gamers want.

      Fixed that. Seriously, Xbox one is being marketed not as a gaming console but a dvr.

      Except that its:

      a) Not being marketed at all yet

      You've heard of xbox one, therefore, it *is* being marketed. They haven't ramped it up to the launch level, but it's there.

    10. Re:Really? by TWiTfan · · Score: 2

      Yeah, except there were just two problems with the Wii, no one bought games for it and no one is buying its successor.

      I myself have a Wii sitting in my closet (the only time I bring it out is for parties, and even rarely for those). I bought 3-4 games for it, and that was it. Contrast that with the 100+ 360 and PS3 games I own, an Xbox Live subscription that goes back to to the Xbox1, and tons of peripherals and other crap I've bought for those systems--and you start to see that making money on the initial console sale itself isn't nearly as lucrative as the long-game. I guarantee you that MS and Sony (particularly MS) have made *way* more money off of my game purchases and Live subscription than they lost on the initial console sales. Nintendo, by contrast, hasn't made jack-shit off me since my initial purchase (and probably won't make even that this time out, because I doubt I'll buy a WiiU).

      --
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    11. Re:Really? by vux984 · · Score: 4, Insightful

      I myself have a Wii sitting in my closet (the only time I bring it out is for parties, and even rarely for those). I bought 3-4 games for it, and that was it.

      I myself have a Wii sitting under my TV. It still gets played multiple times per week, even though there's a WiiU next to it. I bought a binder full of games for it over the years.

      I don't own an xbox / xbox 360 at all. I do have an HTPC hooked up to my TV though, and another 100 games there via steam / gog.com / humble bundle.

      The kids play the Wii & WiiU far more than the HTPC.

      Nintendo, by contrast, hasn't made jack-shit off me since my initial purchase

      And the only thing I've purchased from Microsofts Xbox division is an xbox controller for the HTPC.

      I doubt I'll buy a WiiU

      I don't regret mine; and the kids love it. They're getting a ton of mileage out of Nintendo Land. Netflix works particularly well with the tablet controller.

      We only have a few WiiU titles though, there is still a real dearth of good games for it, and I wouldn't necessarily recommend the WiiU to everyone at this point.

      But as the titles come out, its value proposition will continue to improve. I'm looking forward to Pikman 3.

      I have absolutely zero interest in putting up with the Xbox One; although there have been some games I'd have considered over the years that were exclusives, I have plenty enough to occupy my time and don't really miss them.

      I guess we represent different demographics. I won't pretend you don't exist if you'll return the favor.

  2. Consoles aren't profitable? by dicobalt · · Score: 5, Insightful

    *blink* *blink* No... I'm pretty sure Sony and Microsoft are making lots of money off licensing, game sales, and content distribution. The point is that the hardware itself doesn't need to be profitable.

    1. Re:Consoles aren't profitable? by citizenr · · Score: 3, Informative

      *blink* *blink* No... I'm pretty sure Sony and Microsoft are making lots of money off licensing, game sales, and content distribution. The point is that the hardware itself doesn't need to be profitable.

      Microsoft spend >6 billion dollars building Xbox brand. They barely started making profit last year? (or maybe in 2011). It will take them ~6 more years to recoup this investment.

      --
      Who logs in to gdm? Not I, said the duck.
    2. Re:Consoles aren't profitable? by RogueyWon · · Score: 5, Insightful

      That's the theory. Indeed, since Nintendo abandoned the "hardware at significant profit" philosophy as a form of emergency resuscitation for the 3DS (and hasn't gone back to it for the Wii-U) it's been the only theory in town as far as console developers go. Of course, most consoles achieve per-unit profitability after the first year or two (I got sick to death of being told that every PS2 was sold at a loss years after this ceased to be the case), but the general gist of it is that the hardware is a loss-leader and licensing is where the cash comes from. As manufacturer, other people invest to make games for your system and you cream off part of the revenue from every copy they sell.

      Unfortunately, even that model (which did very nicely for Sony through many of the PS2 years - look at the chart in TFA) is coming unstuck a bit these days. Sony are flat, Nintendo's nominal profit or loss seems entirely dependent upon what the yen has done recently (but strip that out and they seem to be losing money right now in a way that's unprecedented in the company's history) and MS's gaming income is mostly from stuff that's very marginal to... well... gaming.

      The whole console gaming industry in general is going through an odd round of self-cannibalism at the moment. There's just not enough money in the system. Console manufacturers are sinking (or have recently sunk) huge sums into R&D. At the same time, console game sales are actually falling quite sharply this year. They're caught between ultra-cheap (but mostly crap) mobile offerings and slightly-cheaper, more technically impressive PC releases of the same games (with even a basic home PC now easily able to outperform the consoles and the level of tech-savvy required lower than ever). Almost all of the big franchises which have released an installment this year - God of War, Gears of War, Dead Space etc - have seen a fall in sales on the consoles since the previous installments.

      At the same time, development costs for games have risen and are rising still further. Early in this console cycle, the rule of thumb was that an "AAA" console game needed to sell 1 million copies to break even. That figure is closer to 3 million now.

      Forget all the talk about corporate greed; barring the occasional mobile developer who gets (very) lucky, nobody in the gaming industry is raking in profits hand over fist at the moment. Stuff like online passes, day-one DLC and used-game controls aren't being implemented so that executives can have a bigger pile of gold to roll around on top of; they're fairly desperate survival strategies.

      A significant portion of the Japanese games industry has already given up (or is in the process of giving up) the ghost and pulling out of any meaningful participation in the international market, in favour of their more forgiving (and heavily kids-and-otaku-driven) domestic market. There are a couple of developers that still try to be international players (Capcom, Sega, Sony and the publishing, but not the development arm of Square-Enix), but many others have now retreated into the handheld/mobile/moe-game comfort zone that's still profitable in Japan on the basis of low development costs. Even Nintendo seems to be hiving off from the rest of the world a bit; the 3DS's much-hyped reinvigoration is overwhelmingly driven by Japanese sales; it's still underwhelming in the rest of the world.

      Western developers - and any console manufacturer who wants to be an international player - don't have that option. So manufacturers, game developers and retailers are all pretty much locked in a fight to the death with each other for the few shreds of profit left; with the irony being that they all need each other to survive.

      I think game pricing is at the heart of the problem. Games are cheaper than they used to be - a lot cheaper. In the mid-1990s, a new PC game would be 45-50GBP, with console games being more expensive still in some cases. Today, a new PC game will be 30-35GBP and most console games launch at 40GBP but are discount

    3. Re: Consoles aren't profitable? by Mabhatter · · Score: 4, Interesting

      The truth is that Microsoft forced $6 billion into the system to try to takeover... When there was NEVER $6 billion in profit to make back without knocking Sony or Nontendo out and gaining back control.

      Basically nobody LOST which means in a good capitalist system there isn't that much profit to go around... Even though Microsoft was trying hard make it a non-free market which is where they were pulling all their numbers for investors from.

    4. Re: Consoles aren't profitable? by Rockoon · · Score: 2, Insightful

      When there was NEVER $6 billion in profit to make back without knocking Sony or Nontendo out and gaining back control.

      As far as gamers are concerned, Nintendo *DID* get knocked out of the console market. While they had considerable success with the Wii, it wasn't at their competitors expense. Nintendo had to create a new far more casual market in order to continue doing business.

      --
      "His name was James Damore."
    5. Re:Consoles aren't profitable? by wienerschnizzel · · Score: 2

      On the other hand, the software development industry has moved on significantly since the early 1990's:

      .
      - development tools are more reliable, languages more fool-proof
      - there are extensive frameworks available - graphics, communication, logging - myriads of well tested libraries for pretty much anything
      - development processes are better understood and are readily supported by various development tools
      - automated testing and building software is much better
      - operating systems are much more robust

      These are all things that make development much cheaper and more stable.

      And then we see the presentation of the new Call of Duty and its great new innovation is the inclusion of a dog. Where exactly do the $100 million (or whatever the ridiculous amount is) go?

    6. Re:Consoles aren't profitable? by discord5 · · Score: 2

      They're caught between ultra-cheap (but mostly crap) mobile offerings and slightly-cheaper, more technically impressive PC releases of the same games (with even a basic home PC now easily able to outperform the consoles and the level of tech-savvy required lower than ever)

      The problem is that releasing new hardware isn't going to change anything. Sure, the first few months the consoles will have that edge over the PC in the price point, but as new CPUs and GPUs are released the point for a PC to be competitive in price quickly arrives. Look at the XBox One specs: 8 cores and 8GB of RAM with 500G of HDD. I can get an 8-core Bulldozer for a decent price. Finding 8GB of RAM is not all that uncommon with the average PC gamer. What's left is the resolution (4K) and 7.1 surround, which all in all is not that impressive since most people sit on 1080i TVs and 5.1 or better sound systems are a bit of a rarity for TVs (at least here, unless you're one of those home entertainment system guys/girls). The focus on the whole reveal seemed to be on the services: integrating it with cable, kinect and voice control, DVR features (to be discussed with the networks). All things considering that's a bit disappointing, because most people interested in such features have a DVR solution already, and the whole kinect/voice thing seems so pointless... Top it off with the heavy focus on DRM (required internet, the whole used games thing) and the console caters more to publishers than its owners. The same applies to what's know about the PS4: it has similar hardware to what's found on the market today in PC-land.

      The mobile market does what Nintendo did with the Wii and the DS. Games don't need to have that much hardware available as long as they're well presented and have average to decent gameplay they'll sell. A lot of people are just interested in a quick casual diversion, and mobile taps that market pretty well, and it becomes more of a pricepoint issue where people decide on buying a game. Few people flinch at dumping $2.99 into some casual puzzle game. While the mobile gaming and the AAA title demographics overlap a little bit, I doubt that it will affect the bottom line much. Mass Effect and Angry Birds are two different beasts with two different types of consumers, and while some will play both, they serve a different "function". Angry Birds is what you play in 10 minutes of idle time (waiting for a appointment, sitting on the train, etc) while Mass Effect is something you play at home. Mobile is more likely to eat away at Nintendo with its relatively large casual games compared to MS and Sony.

      A significant portion of the Japanese games industry has already given up (or is in the process of giving up) the ghost and pulling out of any meaningful participation in the international market, in favour of their more forgiving (and heavily kids-and-otaku-driven) domestic market.

      When has that never been the case? The only exception to that rule are the fighting games and most of the Square Enix titles. For the most part Japanese publishers have always catered to Japan first, and the western market has for the most part been second. This is not exactly a new trend.

      At the same time, development costs for games have risen and are rising still further. Early in this console cycle, the rule of thumb was that an "AAA" console game needed to sell 1 million copies to break even. That figure is closer to 3 million now.

      That's kind of the problem with AAA titles, isn't it? If you want the damn thing to shine like nothing else available today you're throwing in a lot of skilled labor: programmers, artists, (voice) acting, and the list goes on and on... Yet over the years I've found AAA games to be providing less and less content or depth and more superficial shine, and to me this shows especially in RPGs because that is a genre where content really is king in my opinion. In MMOs the lack of content is made up for by delaying the p

    7. Re:Consoles aren't profitable? by serviscope_minor · · Score: 3, Interesting

      On the other hand, the software development industry has moved on significantly since the early 1990's:

      These are all things that make development much cheaper and more stable.

      True, but the bar has also been raised greatly.

      I mean, all of those things mean that I can single handedly, and quite easily write a game that vastly outperforms Doom I in terms of graphics, etc (ignore artwork...) single handed. It's obviously not because I'm a better programmer than John Carmack, or even that great, it's because I can just do it with much more powerful tools.

      The thing is that expectations moved on. If anything the top end games are vastly more expensive to develop than they ever were because the expectations have moved faster than the technology. If nothing else, now vast teams of artists are required.

      --
      SJW n. One who posts facts.
    8. Re:Consoles aren't profitable? by RogueyWon · · Score: 2

      You're confusing revenues with profits. You can in theory have a game that sells 3 million games in the US and Europe (and 0 in Japan) but which took 2.8 million to break even because of its production costs. Then you can have a game which sells 400,000 in Japan (and none in the rest of the world), but only needed 200,000 sales to break even. On a simple calculation, they've made the same profit. In fact, because Japanese game prices do tend to be significantly higher, the Japanese game has probably made more of a profit.

      This is why so many Japanese developers are either churning out crap like the Hyperdimension Neptunia series (pitched at a small but very loyal domestic otaku fanbase in Japan, and if it gets a few worldwide sales then that's a bonus) or mobile phone games that never make it outside of Japan (pitched at the salaryman demographic whose only gaming time is on his train commute). They know where the profit is. By contrast, trying to make something that's competitive, in terms of both technology and design, with what's going on in the West is risky and, for the smaller developers, impossible to finance anyway.

    9. Re:Consoles aren't profitable? by RogueyWon · · Score: 2

      The "PC gaming is dying" story is a cyclical thing. Nobody was saying that at the end of the SNES/Genesis generation, because as the search for a credible successor to those took ages and ages, PC gaming actually started to seriously eclipse the consoles. If Sony hadn't come out with the Playstation, who knows what would have happened.

      Following that, however, we had two fairly rapid console cycles (PS1/N64 and PS2/Xbox/Gamecube), both of which ended while their consoles still had significant life left in them. This left the PC less time than normal to really flex its muscles at the head of the market. This time around, with the longest console cycle ever, the PC has had a long time to build up a big lead.

      If the PS4 and XboxOne take off, then we'll get another round of "PC gaming is dying" stories - which will be no more true than they were in earlier generations.

  3. What They Want by Anonymous Coward · · Score: 5, Insightful

    They want:
    - top dollar for their hardware (even if it is lacking in horsepower or hard drive space)
    - high game prices (of which they want a higher percentage)
    - high monthly fees for the privilege of playing those games
    - lots of DLC that they get a piece of
    - draconian DRM & no used game sales
    - customers who won't complain about the shitty service and performance of their oversold networks

    Not to mention that they want none of this for their competition.

  4. About to change by neokushan · · Score: 4, Interesting

    It's probably not a coincidence that the PS4 and Xbox One are both running x86 chips inside them. Aside from a few choice bits, developing on each machine should be incredibly similar to the point where it's just a different API for either.

    The best part is that this should translate equally well to the PC industry. If Valve does the SteamBox right, we might just have that "standard" the article is clamouring for. If Valve mandates that a certain level of Steambox has at least an 8-core x86 CPU with a GPU of equivalent power and 8GB of RAM (or better yet, convinces AMD to release an SoC similar to what's inside the PS4), we'll have 3 very different platforms that are easy to develop for, even easier to port to and a golden age of gaming where your platform of choice won't massively impact the games you can play.

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    1. Re:About to change by neokushan · · Score: 2

      Hence the "massively" part. There will always be exclusives, hell there are games on PC that are "exclusive" to Steam or Origin. That will never change but I think we'll see a LOT more multiplatform games because it's so easy (i.e. less costly) to port between them.

      --
      +1 IDisagreeSoHeMustBeATrollOrAnAstroturferOrAShill
    2. Re:About to change by slim · · Score: 4, Insightful

      It's probably not a coincidence that the PS4 and Xbox One are both running x86 chips inside them. Aside from a few choice bits, developing on each machine should be incredibly similar to the point where it's just a different API for either.

      The faster CPUs get, and the better optimising compilers get, the less likely anyone is to code directly in assembly. I think APIs are probably much more significant to games developers than the underlying chips.

    3. Re:About to change by slim · · Score: 2

      Well, I fail to see difference between console and PC in case of steam

      The fact that it will Just Work. On a Steambox, if the game is available, you should expect that it works, and works well: no slowdowns, freezes or graphical glitches.

      On an arbitrary PC, or one you've built yourself, you'll need to check the recommended requirements for every game, apply some reasoning, to decide whether it'll work on your system.

      For example, I got the game "Closure" as part of a Humble Bundle. the requirements for which state "512MB with support for OpenGL 2.0, older or integrated cards may not work". As it turns out, for my integrated graphics, "may not work" == "does not work".

      The Steambox user doesn't need to know what a graphics card is. Assuming it's done properly, the only games available to buy will be games that definitely work on the platform.

    4. Re:About to change by neokushan · · Score: 4, Interesting

      That is true, but there's always been more to it with consoles. While people don't necessarily drop down to assembler as much these days, it's still worth getting to grips with each console's underlying design in order to get the most from it. Take the PS3, its well known that it has CELL chips but writing code for it can't really be left up to the compiler to sort out, you have to know when to use the CELL over the PPC chip, you have to know the best way to package that data and send it, when it's optimal to do so versus when it's going to hinder performance. It has two different types of RAM and it's worth knowing which is best to use and when.

      Even the Xbox 360, although much "simpler" to develop for, has a few exotic bits you don't find on the PC - like the ED-RAM on the GPU that can boost performance considerably as long as you know how to use it effectively. I believe both the PS4 and the Xbox One have a few subtle differences that'll be worth paying attention to, but they're a lot closer to the design of a regular PC than previous consoles (with the possible exception of the Xbox).

      --
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    5. Re:About to change by DeathToBill · · Score: 3, Informative

      This. Having spent quite a lot of the last month trying to beat compiler output with hand-crafted assembly for vector math operations, I think I can confidently say that it is possible but almost certainly not worth it. The possible gains are minimal, even with the (fairly mediocre) VC++ 2010 compiler, and the effort required to get there is astronomical. Face it: the compiler knows, much better than you ever will, which instructions are faster, which combinations of instructions are faster, which ordering of instructions will be faster...

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  5. Closed ecosystems are thriving by Anonymous Coward · · Score: 2, Interesting

    The only story here is that Apple's closed i-device ecosytem is outcompeting Sony's Playstation and Microsoft's Xbox closed ecosystems.

    The death of closed platforms is a nice fantasy, but it won't happen as long as typical consumers continue to be lazy asshats who would rather buy an app from an app-store than write one themselves.

    1. Re:Closed ecosystems are thriving by gnasher719 · · Score: 2

      Outcompeting them in what areas, exactly? Casual toilet gaming? Being able to ask consumers to pay ludicrous price for their stuff?

      One point where Apple is outcompeting Xbox without even trying: In the last few quarters, Apple sold more units of AppleTV than Microsoft sold Xbox units. And I don't even want to know what you are doing in the toilet.

    2. Re:Closed ecosystems are thriving by Yosho · · Score: 3, Informative

      The funny thing here is that consoles nowadays are more open than they've ever been. Prior to the PS3/360/Wii generation, if you wanted to develop for a console, the manufacturers would usually require that you be an actual business, have a physical office, and pay tens of thousands of dollars for special development kits. Even if you could do that, publishing a game was even harder, because you had to secure a contract with one of the big publishers and then pay even more money to cover the costs of a physical production & distribution run.

      Nowadays, all of the big console companies are pretty friendly for indie developers. Development kits are cheap enough that a couple of guys in a garage can afford them, and digital distribution makes self-publishing your game cheap and almost risk-free.

      --
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  6. Re:Simple answer. by slim · · Score: 4, Insightful

    Because the free market decided that selling console hardware as a loss-leader and trying to make up for it in game licenses and market share was a good business model. The problem is, it was a horrible business model and was doomed from the start.

    ...

    The problem is, "people" want a cheap console and don't appear to be fazed by rip-off game prices. This has been proven over the years.

    Don't those two statements contradict each other? As long as people want a cheap console, and don't mind paying big money for games, then selling hardware as a loss-leader is a very sound business model. It worked for at least three generations of hardware.

    It may cease to work in the current climate, but I think that's because people's desires have changed, and gaming has become cheap and practical on ubiquitous general-purpose hardware. That is, people buy an iPad or an Android tablet for other reasons, and find they can buy adequate games for less than $2 a pop.

  7. Re:They need sanity. by damnbunni · · Score: 2

    You do realize that if you adjust for inflation, Pitfall! for the Atari 2600 was a $90 game, right?

    And Secret of Mana for the SNES would be about $130 in today's dollars?

    Ridge Racer for the Playstation would be about $75 today.

    Game prices are lower now than ever before, which is why you're seeing so much DLC and the like trying to eke out a few more bucks on the same engine/game.

  8. Re:PC + Steam by Vanderhoth · · Score: 2

    My one year old Ubuntu 12.10 laptop plugs into my TV through HDMI 2.0. With a wireless keyboard and mouse, or using my PS3 controller, it's far superior to my PS3, and has better hardware specs than the Xbox One.

    Sorry console loses again.

  9. Let me get this straight... by MachineShedFred · · Score: 5, Insightful

    So an American corporation takes a long view on a business proposition rather than playing the short con quarterly filing scams, and this is a bad thing?

    Remember when that's the way business worked? Microsoft (at least, this division) is actually doing it right, and not bending to the whims of shareholders and 10Q filings with the SEC.

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    1. Re:Let me get this straight... by citizenr · · Score: 2

      Give me a loan that I will have to start paying back in 20 years.

      --
      Who logs in to gdm? Not I, said the duck.
    2. Re:Let me get this straight... by ceoyoyo · · Score: 2

      20 years is kind of a long time to start making profit on an entertainment device. A nuclear power plant, sure, but a video game console brand?

    3. Re:Let me get this straight... by slim · · Score: 2

      It's called an "interest only mortgage".

    4. Re:Let me get this straight... by JDG1980 · · Score: 2

      So an American corporation takes a long view on a business proposition rather than playing the short con quarterly filing scams, and this is a bad thing?

      It's bad when they are a convicted monopolist dumping products below cost in order to extend their monopoly to another sector.

    5. Re:Let me get this straight... by UnknowingFool · · Score: 2

      What kind of revisionist history white washing is this? I bet you that MS and Sony neither had 10 year plans for pay back of investment for consoles. For your theory to be correct, MS would have planned to write off at least $1B to fix the Xbox 360 RROD issue alone. Not bloodly likely. Both Sony and MS probably thought they would have won the market by now and the other folded. Neither of them probably thought Nintendo would still be in the game especially when Nintendo went with a completely different strategy of releasing a less powerful machine but focused on casual gamers.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    6. Re:Let me get this straight... by stymy · · Score: 2

      How are they using a monopoly in one sector to acquire one in another? They don't seem to be pushing the Xbox through Windows. Moreover, there's a difference between loss leaders and dumping. Their Xbox division is now profitable, as instead of making money on the consoles they get it from games and Xbox Live, which is a perfectly valid model.

  10. A solution for the wrong problem by Millennium · · Score: 2

    The problem is not a lack of standards: even in the last generation, game makers managed to paper over that with cross-platform engines. The problem is that HD has made games inherently too expensive to produce. Even shovelware on the Wii turned out to be more profitable than even most of the blockbusters, which is why companies (most notoriously Ubisoft, but others as well) used it to fund their unprofitable HD development.

    No amount of standardization will fix this, because while standards do fix a problem, it's not the right problem domain. The art department is incurring the big costs nowadays, not the code. This is like performing micro-optimizations in the wrong loops.

    1. Re:A solution for the wrong problem by AmiMoJo · · Score: 2

      The same thing happened to special effects on TV shows and in movies, and the solution was to rely heavily on stock objects, textures and scenes combined with procedural effects that took the work out of hand-animating stuff. Combine that with excessive use of the shaky/blurry camera to hide the imperfections.

      The equivalent for games to use an off-the-shelf engine like Unreal or Crytek and tools that take the high quality models developed for animation and degrade them to a level that can be used in a game. If you want a forest there is a plug-in for the engine that generates one, you just need to throw a few textures and parameters at it.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:A solution for the wrong problem by Animats · · Score: 4, Interesting

      The same thing happened to special effects on TV shows and in movies

      True. Visual effects have become good, but not cheap. We no longer have movies with a "cast of thousands", we have animation staffs of thousands. Look at the credits.

      About a decade ago, I was talking to a Hollywood director about this. He'd done some films that had live and animated characters interacting. The cost of doing that was high. He was hoping that, in a few years, he'd be able to make $100 million movies for $20 million. It's not working out that way.

      There was hope for that in games. Procedural generation was going to make it possible to have huge cities without huge teams of artists building them. Didn't work out. SpeedTree can generate huge forests and outdoor scenes cheaply and well, so you can have a huge, mostly empty natural world like Red Dead Redemption. Cities, not so much. There was much interest in procedural city generation around 2009, but what comes out is usually only good enough to fly over.

  11. When it is MS doing something by Sycraft-fu · · Score: 4, Insightful

    It is bad on Slashdot. People here love to hate MS, so if MS takes the long view on something, that's bad. If they take the short view on something else, that's also bad. It is a matter of zealotry, not fact.

    In fact MS has been good at the long view idea for quite some time. When they get in to a market, often their first showing isn't that impressive. Many companies who do that say "Oh well, guess we can't compete," and fold. MS sticks with it, keeps improving, keeps trying. They don't always do that, and when they do they don't always succeed, but they've done it a lot.

    1. Re:When it is MS doing something by serviscope_minor · · Score: 3, Insightful

      Many companies who do that say "Oh well, guess we can't compete," and fold.

      Or just plain don't have the money.

      There are very few companies the size of Microsoft which can spend the billions required to get established with the Xbox, in order to prepare them for actualy profitability with the later versions.

      But yeah, taking the long view is good if you can afford to.

      --
      SJW n. One who posts facts.
  12. Re:Dodging bullets is hard work. by i+kan+reed · · Score: 2

    Call me when it's the rich people being shot when bad unemployment drives murder rates up.

  13. This has all happened before, it will happen again by VortexCortex · · Score: 2

    Remember Mechanical Games? Dedicated machines for implementing one game: Basketball, Hockey, Pinball, etc.
    Remember Arcade Cabinets? Dedicated Gaming Rigs in a Box. They were specialized to their task, but the hardware inside could run more than one game program. Their customizable form factor could provide better gaming experiences for many games. Even more general purpose hardware, consoles, which could run a gamut of games more cheaply came along. Then consoles met and surpassed the performance of Arcade cabinets. The arcade cabinets slow hardware cycle meant they couldn't take advantage of Moore's Law as easily, and the consoles were more accessible to play -- Being in your house.

    For a while personal computing devices were sub-par to consoles in terms of game performance. Now, however, the guts are nearly exactly the same. The glacial console cycle means that PCs can more effectively take advantage of Moore's Law. Also, you're not going to replace a PC with a Console -- Especially not a Mobile Personal Computer. PCs can be even more accessible -- Fitting in your purse, backpack or even pocket today. If you do try to compete with a PC then you need to do everything the PC can do, thus turning into a general purpose personal computer. Now, reference the features of the consoles over time -- Note that they are slowly becoming PCs...

    The main difference between a PC and a Console is that PCs provide a common API to a wide range of hardware. This allows programs to be cross platform. The main secondary difference is that a PC can be used to create new software on. For these reasons Smartphones, Tablets, and Consoles can not supplant the PC... If they do gain these features then they will actually become PCs.

    The main problem with consoles is that they are set exactly opposed to the progress of the Games Industry they purport to support. What is best for Game Developers and Game Players is if all games can run everywhere forever. What is best for Console Sales is if games only run on one platform for a limited amount of time. What was best for Arcade revenue was if the games could even be geographically exclusive.... Exclusivity didn't work out so well. Inclusivity and common software API -- More General Purpose -- has been winning the Game Wars since the first digital hardware that could run more than one game program. Consoles are holding back the game industry, they must, that is the nature of a closed platform that does not play nice with others.

  14. Re:Lack of offline multiplayer by scot4875 · · Score: 3, Informative

    Most of the loss of split screen is because it was beginning to get too difficult to afford the processing power.

    What a load of apologist horse shit.

    So you're telling me that an N64 with its sub-100MHz processor and very limited 3d rendering hardware was somehow able to do 4-way split screen but newer consoles just can't possibly handle it? That they can't tweak the settings to sacrifice just a bit of detail to have 2-4 players on the screen?

    It's entirely due to laziness and greed, and because gamers are too pathetic to demand better.

    --Jeremy

    --
    Jesus was a liberal