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Sony, Microsoft Squabble Over Console Features, But the Real Opponent Is Apple

Nerval's Lobster writes "Now that Microsoft and Sony have unveiled their respective next-generation gaming consoles, the two companies have cheerfully resorted to firing broadsides at each other. Whether the current brouhaha has any effect on sales of the Xbox One and the PlayStation 4 (if hardcore gamers keep complaining, they may even convince Microsoft to knock $100 off the new Xbox and bring its pricing down to the PS4's level), it's also drowning out what many perceive as the real issue: gaming consoles face an existential threat from mobile devices, most notably those running iOS (with some threat from Android). First, there are signs that the hardcore gamer market is soft: console sales in the United States dropped 21 percent in 2012, and sales of new video-game cartridges haven't fared much better. Second, PC/console games such as X-Com have begun appearing on iOS; if that trend continues, the console companies will have more rivals to fight against. Third, Apple is developing a game controller for iOS which could make it an even more dedicated opponent — and convince other tech companies to follow in its footsteps. But don't tell any of that to Microsoft and Sony, which seem content to fire at each other."

23 of 315 comments (clear)

  1. Cartridges? by intermodal · · Score: 5, Insightful

    Cartridge sales are extremely low, but that has nothing to do with PS3/4 or the Xbox family.

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  2. Vaporware... by mystikkman · · Score: 4, Insightful

    We can talk about the mythical Apple TV with new console generation level graphics(which will make it expensive) when I see it.

    1. Re:Vaporware... by DJRumpy · · Score: 4, Interesting

      Three things to consider. New hardware releases for these iOS devices hit every 12-18 months, with moderate to substantial gains in processing and graphics power. Couple that with cheap digital games costing a fraction of console prices, and simple portability from one iOS device to the next, even when going to an entirely new device, or even from a phone to a pad, and the appeal could definitely be there.

    2. Re:Vaporware... by hahn · · Score: 4, Interesting

      It doesn't need to be as powerful as a console level graphics. This same argument was applied to how iPhone cameras couldn't compete with full frame sensor DSLR's. It didn't need to: http://www.flickr.com/cameras Hardcore gamers make the mistake in assuming that everyone who buys a console has the same requirement for graphics power as they do. It's quite the contrary. I know at least 7 friends as well as myself who have PS3's that sit there and collect dust. We originally bought it for FIFA 2010. Then we started to use it a lot more for Netflix when that became available. And now that all the TV's have Netflix built in (and 4 of us have Apple TV's), the PS3 never gets touched. We were all just talking about this a couple of weeks ago - none of us have plans to get any of the new consoles. They're simply not worth it for us. And I somehow doubt our situation is unique, or even rare.

      --
      "The only normal people are the ones you don't know very well."
    3. Re:Vaporware... by nickittynickname · · Score: 3, Insightful

      No, your situation isn't rare. It's just what happens when you get older. You have a lot less interest in video games. By the way, I think you mean point and shoot, not DSLR.

  3. ... sales of new video-game cartridges haven't.... by djsmiley · · Score: 5, Insightful

    Carts.....

    So this was written by someone who understands the gaming market well then? In 1995 maybe.

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  4. Mobile is the future. by ackthpt · · Score: 4, Funny

    Really, go visit an airport, library, park bench, McDs, waiting room, etc. People are playing games on their mobile phones or tablets.

    If you still need high power, play it on your desktop. Consoles are throw-away electronics and their time in the sun is diminishing.

    Now, if you'll excuse me I need to get a jump on early Christmas shopping... I need an Angry Birds bed set, Angry Birds jacket, Angry Birds underwear, Angry Birds bicycle, Angry Birds weed whacker, Angry Birds can opener, Ford Focus Angry Birds Limited Edition, Angry Birds home pregnancy kit, ...

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    1. Re:Mobile is the future. by Anonymous Coward · · Score: 5, Insightful

      Nope. Wrong. People play games on phones because you can, but there's no direct correlation between this and console game sales. Totally different demographic. I couldn't give two rips about video games but I'll play a game every now and then at the airport because it beats watching the guy sitting across from me pick his nose. It's a convenient time killer. Of course there are phone based games that are addictively fun to some, but they tend to be very short lived. Console and PC gamers want immersive games that a 4 to 6 inch screen cannot deliver on. They want extremely granular control that a few soft buttons cannot offer. You're premis is quite simply wrong. You're comparing apples to oranges.

    2. Re:Mobile is the future. by ravenscar · · Score: 4, Informative

      There's a difference between killing time while waiting for something better to come along and making a deliberate investment of time in gaming. I'd say that most mobile games qualify as the former while most console and PC games qualify as the latter. At this point, mobile games don't seem like much a threat to console games. Sure, my kids like Angry Birds as much as anyone else. They'll play it when they're riding in the car, at a family BBQ, waiting for the bus, or some other place they'd rather not be. I've never seen them dropped off by the school bus only to burst in the front door, plop down on the couch, and try to tackle the next level of Angry Birds. I've seen them try to do that many a time with games like Fallout or Bioshock. I say "try" only because I typically won't let them veg out on video games prior to completion of homework and chores.

    3. Re:Mobile is the future. by smash · · Score: 4, Insightful

      As a game developer do you: Risk a multi million dollar budget making a high def AAA title for the big consoles or spend 10% of that for higher potential return at lower per-sale price in the mobile market. Given the cost to develop, are you more willing to risk trying something original (that may flop) in the console market, or mobile?

      It's a no brainer, and why the console market is the same old stale recycled garbage, and the mobile market has some of the most original game ideas seen in decades.

      This whole "must be 1080p!" is what is killing the gaming industry. Because the games now cost so much to develop, no one wants any risk, and thus nothing original is attempted as it is risky. So we end up with "Call of duty 14" or "need for speed 25", which are mostly just re-skinned versions of the same old shit we've been playing since 1991.

      --
      I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
  5. Cartridge? by HeckRuler · · Score: 5, Insightful

    console sales in the United States dropped 21 percent in 2012, and sales of new video-game cartridges haven't fared much better.

    What the hell would be considered a "new video-game cartridge"?

    I know jargon in certain industries gets weird. I mean, I deal with tables, floors, clouds, nets, webs, pipes, and none of those are physical objects. But whoever is using the term "cartridge", in the game industry, in this year, deserves to be ignored as they are obviously stuck in the last century. Seriously, while you're back there warn them about 9/11 and Bush.

  6. Apple, no fucking chance by Anonymous Coward · · Score: 5, Insightful

    People playing 99 cent time wasters aren't the same demographic as those spending $400 on a console to buy $60 games. If Apple come up with a PC type small box that runs games, and give billions to several devlopers, they will enter the gamers' market, their twee stuff on their iStuff is not taking a single cent away from xbox, ps3 or nintendo, other then child titles and all that useless fitness stuff women buy.

  7. Lol wut? by Wookact · · Score: 4, Insightful

    Apple is planning on taking on Microsoft and Sony. Lol with what a tablet? There is just no way a tablet alone can take on a dedicated gaming device. The deck is stacked clearly in MS and Sony's favor on that. Lets see dedicated devices do not have the same size constraints, do not have to deal with battery life, do not have to deal with powering a display, do not have to deal with mobility, do not have to deal with sketchy wifi/4g coverage.

    I suppose someone will chime in suggesting they mean the Apple TV which could be a valid point, except the market penetration of those are MUCH smaller, and the fact that they do not have any AAA titles that rival the competitors.

    Controller or not, there are no Apple devices that compete directly with xbox and ps.

    1. Re:Lol wut? by Anonymous Coward · · Score: 4, Interesting

      They don't compete directly; the point is the future may be 10-20 million "hardcore gamers" and a billion on phones and tablets. Especially outside the first world. Game companies follow the money/customers. Apple is selling over a half billion dollars of games every month.

      I think I saw a gamasutra article listing market sizes as mobile > console > social > PC

      If you are not a multinational company, if you are funding / developing a new game, it is increasing going to be Mobile. Regardless of how the ranking of XB, PS4 and PC turn out, they will all be trailing mobile.

    2. Re:Lol wut? by Wookact · · Score: 5, Insightful

      You miss the point. Comparing tablets/phones to dedicated gaming machines is kinda like comparing bicycles to cars.

    3. Re:Lol wut? by jedidiah · · Score: 4, Insightful

      No. It's like comparing tablets to PCs.

      Everyone thinks that Apple products are going to displace both PCs and game consoles when in truth the Apple products are very limited. As soon as you want to "get serious", you will likely want a better and more specialized device.

      This goes in general for any number of things that phones are supposed to be killing right now.

      --
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    4. Re:Lol wut? by Bogtha · · Score: 3, Interesting

      I suppose someone will chime in suggesting they mean the Apple TV which could be a valid point, except the market penetration of those are MUCH smaller, and the fact that they do not have any AAA titles that rival the competitors.

      The market penetration is low because, right now, it's just a vehicle to play iTunes content on your television. They do not have any AAA titles because Apple hasn't opened up the SDK yet. Apple TVs run iOS internally and are roughly as powerful as their mobile devices.

      Now that officially-blessed game controllers are coming to iOS 7, all Apple really have to do is open up the SDK, which will be very similar to the current iOS SDK, add internal storage, and put an App Store application on the Apple TV. Suddenly there's a ~$199 console on the market with a horde of iOS developers able to port their existing games very easily. The App Store is far easier to publish on than traditional games consoles and there's a lot of iOS developers who are champing at the bit to put their games on Apple's new game console.

      Is it as powerful as the next-gen consoles? No. Can it play lots of enjoyable, cheap games with decent graphics? Yes. It doesn't have to be the most powerful console to be the most profitable console.

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  8. Not yet... by RogueyWon · · Score: 4, Insightful

    18 months ago, Apple as a serious threat to the established console makers looked plausible. It looks a lot less so now.

    iOS is becoming a much less credible gaming proposition with every day that passes. Why? Shovelware IAP-laden crap which barely even qualifies as "games". Ok, occasionally you get games like X-Com or Baldur's Gate: Enhanced Edition which try to swim against the tide; but even there, they're never anything more than slightly inferior ports of games available on other platforms.

    Finding anything worth playing on iOS is getting harder and harder. Square-Enix and Cave put out a few titles worth a look - but even Square-Enix have gone down the route recently of pay-to-win shovelware.

    At the same time, the low-priced offerings on the consoles - and on the Playstation Store in particular - have soared in quality. If you want a mobile device right now that can play high quality indie games, sold at a reasonable price, then you don't want an iPhone or iPad, you want a Vita.

    Indeed, though the Vita's failure as a "PS3 in your pocket" is now almost complete (barring the occasional decent game such as Littlebigplanet Vita or Soul Sacrifice) the machine's sales seem to be trending upwards on the back of a decently priced but rigorously quality-controlled low-budged and indie scene.

    1. Re:Not yet... by RogueyWon · · Score: 4, Insightful

      No, DLC is not the same as "pay to win", at least, not as it's usually used.

      There's a lot of DLC out there that's perfectly good value. Look at the Borderlands 2 DLC packs, or some of the Bioware DLC packs. DLC done right is basically what was, in ye olde days, called an "expansion pack", but split up into a few chunks. So rather than pay $25 for a single expansion, you pay $5 five times for roughly the same amount of content, delivered episodically. The value to the player is the same, but the publishers have decided that keeping a faster cycle of expansions to the core game makes people more likely to buy their content. I have bought every non-cosmetic piece of DLC for Borderlands 2 and Mass Effect 2 and do not regret a penny of it.

      See, without that DLC, I still had a full sized game to play. The DLC for each game amounted to an old-style expansion pack, for about the same price. It's extra content that fleshes out the game and extends the play experience.

      Pay-to-win is very different. With pay-to-win, the entire game is, in theory, available to you - often for free. The problem is that unless you fork over money, most of the game will require utterly implausible amounts of time to access. That might be time spent running in circles doing random encounter battles or the like. Or, even more cynically, it might be "real world time elapsed" - an entirely artificial time constraint where it doesn't even matter whether your device is switched on. That time has to pass - unless you press the "pay now" button.

      What this means is that the game mechanics are redesigned to strip out "skill" and "fun" and replace them with "pay or suffer". The game is no longer designed to make the player enjoy it (in the hopes he'll pay for future games from the same publisher), it's designed to get him to pay more to accelerate his progress.

      The freemium/pay-to-win bubble is already bursting. Expect to see a lot of companies who have invested in it go to the wall over the next year or so. Some of the smarter ones are already getting out.

  9. Not the same market by Anonymous Coward · · Score: 5, Insightful

    How many times will people think that the iOS gaming and the HD console gaming is the same market? this is bullshit. yes there is some overlap, yes there is a bit of cannibalisation because time is a limited ressource, but no one can compare the experience of a AAA game on a PC or next gen console with what you can get on even an iPad.
    even if it's streamed on a TV, even with a controller. the hardware is incomparable, the promise of the experience is completely different.

    let's stop with this "new apples are disrupting oranges!" please.

  10. Apple? Really? by medv4380 · · Score: 3, Insightful

    The iPad and iPhone gaming market exists, but it's limited. It's a casual gaming device to satisfy you as you wait for your flight. The "hardcore" market is soft for a couple of reasons. Keeping the current gen system around for 7 years was a bad idea. Increasing development cost too rapidly was a bad idea that Nintendo warned Sony and MS about. Now we have good games like Tomb Raider, but Developers and Publishers are spending far too much to make them. The adjustment will be the companies who are bad at business will die. I'd put money on Square dying given how they turned success into failure. Not even stratospheric Kingdom Hearts sales will save them if they keep overspending. Keep in mind not a single KH game has exceeded 6 Million in sales, but I bet they budget for exceeding 6. This is what is killing the market. Not the witches poisoned Apple.

  11. Re:One of these things is not like the other by hairyfeet · · Score: 4, Insightful

    No shit, sales are soft because the consoles are as old as dirt and all we have been getting lately is the same old same, not to mention this is the time of years when sales ALWAYS goes down because hey! Its summer, people actually want to go outside and enjoy the nice weather, who woulda thunk it?

    But the ONLY console maker that has to worry about the iPad is Nintendo, they have bet the farm on the casual market who is too busy playing with their pads to care about the Wii U, especially since the big gimmick this time is the Wii U actually coming with a pad of its own and so many being burnt by the Wii being the home of a handful of decent games and a mountain of shovelware.

    As for the rest of the market? Some will go with Xb1, probably more will go with PS4 thanks to lower prices on the hardware and MSFT's well publicized douchebaggery as of late, and with the prices of PCs never cheaper and the games so much more affordable some will join us PC gamers on our side of the fence, especially since HDMI makes pretty much any PC made in the last 5 years usable just like a console. Things are slowing down now because duh! Nobody is wanting to sink money into old consoles when new consoles will be out before Xmas.

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  12. Re:One of these things is not like the other by smash · · Score: 4, Insightful

    q: how many girl console gamers do you know?

    How many games do the girls you know have on their phone?

    My answers are: 2 and if my ex is anything to go by, 50+. Every single smartphone owning girl I know have many games on their smartphone. The mobile gaming market is many many times larger than the console market.

    --
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