Infographic: Is the Console Dying?

Fool.com: ''With all the hype around the Wii U, you're probably wondering if this is a good time to invest in Nintendo (NTDOY), or any gaming company for that matter.

An investor might reason that GameStop (NYSE: GME  ) has much to gain from sales of the Wii U consoles, games and accessories. Then, as the Wii U hype dies down, we can look forward to the release of Sony's (NYSE: SNE  ) PlayStation 4 and Microsoft's new (NASDAQ: MSFT  ) Xbox in late 2013, if the rumors are true.''

[SynGamer]

Gaming-only consoles? Yes, they are a dying breed. Media-focused consoles? Those are definitely on the up-and-up. Microsoft really changed the game with the Xbox 360's integration with a number of MS/Windows applications. Sony, for their part, have also done a decent job at bringing media to the living room.

Really though, we can thank Netflix, Amazon (Prime), and Hulu (Plus) (and a host of other apps/channels) for daily usage of our consoles. I have my PS3 on almost every night for Netflix simply because it's the best version of the app at this time (IMO).

I feel Nintendo's TVii for the Wii U is an interesting concept, but I feel the next wave of mediacentric home devices are going to come from Microsoft and Sony. They'll pack the gaming punch, but we'll be seeing almost everything available if predictions hold true.

Personally, I can't wait :)

[decrypt]

In reality all the console makers are having problems.

Ill start with MS. MS is a huge whale, which heavily relies on its Windows division for its existence. Xbox Division is a very small part of the group. If Windows were to go down, it would take the entire MS corporation with it, Xbox division wont be able to pull the company along. Times have changed, the day and age when people preferred to upgrade PCs every 2-3 years and get a new OS with it are things of a the past. 3-4 year old computers can even today run any application people want to run.

Hence there is a lack of willingness to upgrade PCs and buy new OSes. Instead People prefer to buy tablets and smart phones for most of their daily use like Emailing, Facebook, Twitter, surfing etc. People have even started to prefer to buy Macs. All this change is resulting in lower sales for MS specially for Windows 8. Eventually this will hit there most profitable product the enterprise servers etc. If people migrate to devices like smart phones and tablets there will be no point in having MS servers for large corporates. Hence with Windows tanking, MS will be in trouble, the Xbox division will not be able to do much, it can barely exist on its own.

Sony, This is a company that was worth over 200billion USD back in 2000. Today its worth a mere 10billion usd, its hardly a shadow of what it used to be. Sony has been beaten in just about every electronic segment be it TVs, DVDs, Cameras, Cell phones.

NYSE: SNE has fallen from 60usd a share 5 years back to hardly over 10usd today. Hence Sony isnt doing too well either, infact their position is worse than MS.

Nintendo, They had a lucky run last gen with the Wii gimmick. Wii U seems to not have any multiplat support. Nintendo is a bit of a dark horse at the moment. I am not optimistic on their approach since i dont think the Gimmick will sell this time.

Overall all the console makers seem to be in trouble. None of them really are in a comfortable position.

[Psychonaughty]

You are wrong about Microsoft, they make more from Office than Windows and almost half again from server and tools, they would be fine without Windows albeit 1/3 less the company they are now.

Saying that, I predict some choppy years for Microsoft in the future if they continue to keep their eggs in 3 to 4 baskets (although exactly the same could be said for Apple).

Sony are very close to going bankrupt, you are right about them, they are not dominant in any area now and are in fact lagging in most areas.

As successful as Nintendo has been and I have massive respect for them they are totally dependant on the success of their consoles and things aren't exactly going well in Japan's econonomy atm, One failed console generation for them would be the end of them although I hope it doesn't happen.

I agree with your overall sentiment though, this industry is in a precarious position.

[1upgamer99]

LOL, Wii U Gimmick? Clearly you have not sat on your own favorite chair and spent a few hours with the Wii U. The gamepad is no gimmick. There are very few reviews of the ports to Wii U that in any way say the gamepad makes the Wii U gamepad a gimmick. Hud, Maps, on the fly no pause weapons switch , Making calls on Madden 13 via gamepad, BOPS 2 Multi-player. Far from a gimmick. I have PS3 and PC, but now Wii U is my favorite way to play. Also if you don't like the gamepad Use the Pro-controller, or Wii Remotes. Yeah You can pretty much play any way you want to on Wii U.

[pixelsword]

Ignore decrypt; he has one bubble for a reason.

lol :D

[N4g_null]

It seems gaming media is killing gaming. They don't even talk about gaming as if they can enjoy it as a whole. It seems they have a side they are rooting for and they are invested into it some how. Adults always mess things up.

There is a such a thing as coexsisting. Plus growth of one side does not mean extinction of another. Unless one side over extends enough to put them in jepoardy. Ask sega, even nintendo and now Sony. Yes this can even happen to ms.

[dedicatedtogamers]

If devs focused on making gaming-only consoles...

- Manufacturing prices would be lower (and therefore profitability would go up while retail price would be down)
- Game quality and quantity would inevitably increase as the console makers spend time on making games instead of Youtube integration, TVii, video chatrooms, and movie streaming apps
- Stupid, waste-of-resources features like social integration would no longer be included with games

Unfortunately, "consoles" these days are simply dumbed-down PCs with fewer features. Consoles used to be very different compared to PCs (the games, the controllers, etc) but now they're not.

[GreenRanger]

That is the saddest picture i've ever seen.
On topic: The consoles aren't dying, just changing so much that they don't resemble consoles anymore.
If they are not all in one devices, they'll vanish, just like the wrist watch and alarm clocks.
Even TVs have multiple uses these days.

[MikeMyers]

That's because the consumer is also evolving. We have become masters of multi-tasking. Very few people go looking for a cellphone that is about phone call quality. They instead want other features besides just talking to people. Why have a game console that just plays games and a bluray/DVD player that just plays movies and a CD player that just plays music? They are able to integrate them all into one device now. Nintendo always seems to be the last to adapt, riddled with history and living in their own bubble.

Consoles have grown with hard drives, online patches/updates, online multiplayer, apps like Netflix, reward systems, online stores. I expect them to keep evolving, so no, they aren't dying. In fact the gaming market itself has grown because now you have people playing games on many devices. Sure it might have some effect on console sales, but looking at last generation they sold well over 200 million between the 3 consoles.

[N4g_null]

We are not masters of multitasking. We can look at different things at the same time but doing two involved task at the same time tends to make for one dissatisfied task doer. Task organizer would be better than task master. That is a bad cliche.

[MikeMyers]

The Wii U can require you to multi-task. How many times have you seen people watch TV while using their smartphone. That is multi-tasking in the sense I'm talking about. I'm also elaborating on the person above who mentioned how even TV's now have internet enabled features.

Some consumers are no longer satisfied with one product only doing one function. That is why game consoles are nothing like they used to be and why they will continue to be center pieces in your living room that does more than just gaming.

[MrKim12]

They ain't dying. Just evolving.

[PhoenixRising37]

no, consoles are not dying. they are only becoming more popular. Everyone i know has an xbox or ps3, whether it's my grandparents or teachers, everybody has one now.

[MasterCornholio]

I can agree with some people that handhelds are dying (despite the 3DSs impressive sales) however i honestly dont see the death of consoles anytime soon.

The Wii U might fail though due to its unconventional controller design but so might the 720 and the PS4. We really will not know the answer until the consoles have been in the market for a while.

[bunfighterii]

The move to 'casual' is a broadening of the gaming industry, not a replacement of it.

Drops in console sales are also a product of a mature market, reaching near saturation level. It's now selling to late adopters and people replacing existing consoles that have broken down, or some other reason, which is never going to give the level of sales you get earlier in the consoles' lifetime.

There'll always be a place for a console like experience, being a deep and involving game, that is graphically pleasing and played on big screen with a game pad with more than 5 buttons or a simple touchscreen.

Mobile gaming has its place, but it isn't a console experience that can replace what gamers are after. They're quick fix type games you play in 10 minute sessions on the couch or at a train station. Video games as we know them on PS3 and Xbox provide more competition to Hollywood than mobile games.

Regardless of whether its a dedicated box that plugs into your tv, a cloud subscription service or connected mobile device that can play console quality games, we'll always have a console like experience, because there's lots of demand for it.

[dedicatedtogamers]

"Mobile gaming has its place, but it isn't a console experience that can replace what gamers are after. They're quick fix type games you play in 10 minute sessions on the couch or at a train station"

But what if people want those quick fix type games? Maybe people are growing tired of 10-minute intro videos and 20-minute tutorials. Most of the highly-popular console games feature online multiplayer that takes 5 minutes or less to jump into. Arcade gaming revolved around offering fun, quick, instantly-gratifying videogames. The Wii found success partially because it was so quick and easy to jump into a game.

[Bolts]

This info graphic just confirmed what we already know. The time for the nextgen consoles is now. Sony and MS simply can not wait another year or else they risk losing mind shares to the phones and tablets. Oh and you can forget about milking a console for 7 years like Sony and MS did with current gen. Because the phones and tablets will run circles around your dedicated gaming platform in less than four.

The console as we know it is a dinosaur doomed to extinction unless some robust hardware are bought to bare immediately.

[zebrahim]

Oh my...fascinating comment, but critically flawed. The console is not dying, the consumer is polluted. Polluted by a range of competing products in a tight economy. Tablets sell for hundreds of dollars, but gamers won't pay $600 dollars for new next gen consoles. Thus the quandary of console manufacturers attempting all these weir gimmicks. The positive out of this situation though is that the industry has grown. In fact it rivals the movies industry now. Call of duty sells billions. So...the industry is actually thriving, but in the wrong direction for the core gamer. Pollution of casual games are fine, but unfortunately it has put dollar signed in the eyes of Sony and MS and Nintendo spend days counting their billions from kids sales. AAA game development costs have skyrocketed for a number of factors some of which are brought on by gamers themselves, which include unwillingness to increase their propensity to pay more for games. Why do we refuse to pay more, yet we can impress our friends with tablets and phones? Have we become so fickle? Lets address the issue of whether consoles will die. No they will not. I am of the opinion that other players will winter the market which is changing to satisfy the " new majority".... However a market for the core will always exist. Sony knows this. They have earned the trust of their customers with reliable consoles, exclusives and a fantastic PSN service for free. The American market is infatuated with self industrialization hence the focus on 'buy American Xbox' only. It's a deep rooted parity that slowly changes as consumers educate themselves. We should see dramatic swings in console features and architecture, but we should never be shy to pay.

[N4g_null]

There may not even be a new market. Look at all of the f2p companies suddenly falling flat. It is very similar to the COD situation. It is not the best online fps yet people play it until some thing better comes along. Better is defined by the consumer so unless the creators see what the consumers want.

We have way more static in this consumers reaction than ever before since so many people are preying on these consumers now. We have investors creating bubbles, L33ts fighting for respect and a pay check. Both using negatives to get the upper hand. Not very many proof positives. Some really tired old arguments here also that are simply not true.

[ElectricKaibutsu]

Consoles are still the best way for friends to get together and play games. Tablets and phones can be OK for gaming but they're only suited for playing by yourself.

[Pintheshadows]

If gaming went tablet/mobile only i'd shoot myself.

For all the fuss about mobile gaming recently the only one i've played and enjoyed was Plague Inc due to its innovative nature. All the rest (including the so called 'full gaming experiences') are mere approximations of what consoles/PC's can do far better.

And you can't fit a GTX690 in a tablet and play The Witcher 2. And considering the ridiculous price of tablets (Apple... i'm looking at your overpriced ****) you'd be better off just buying a nice PC.

Basically what i'm saying is news of the consoles demise is incorrect. Just like it was with the PC. And the sooner these anti gaming bloggers (many of whom seem to know nothing and seemingly started with the 360) are silenced and their odd vitriol has ceased the better. And no, I don't mean kill them. Although...

And that wasn't a sleight at the 360 by the way. Just an observation.

[silkrevolver]

They're fine. It was an off year to make way for the next generation.

It always happens.

[Hicken]

People have extremely short memories, when it suits them.