The State of the Games Industry: 'Consoles Are In Trouble'

IndustryGamers: The Games Summit track of panels at CES contained some interesting topics and revealed some new insights. The panel on the State of the Games Industry was moderated by Mike Vorhaus, the president of Magid Advisors, strategic consulting firm. Panelists included Sean Vanderdasson, Senior Vice President of Game Services at games network Wild Tangent; Sean Spector, Co-Founder and Senior VP of Business Development and Content at game rental specialist (and owners of Direct2Drive) GameFly; Gene Hoffman, CEO of Vindicia, a provider of billing solutions for digital merchants; Nanea Reeves, Chief Product Officer at cloud gaming provider Gaikai; and Chris Early, Vice President of Digital Publishing at Ubisoft. The discussion lead off with some statistics on the industry to provide some background to the opinions the panel would present.

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metsgaming2232d ago (Edited 2232d ago )


Enough of this doom garbage really

slayorofgods2232d ago

and a big sack for a loss.

thorstein2232d ago (Edited 2232d ago )

Meh. It is just "Industry"Gamers trolling for hits/ trying to make themselves relevant. These guys don't know journalism or the industry.

sikbeta2232d ago (Edited 2232d ago )

Sales were down 21% in 2011, the idea is to grow, they gaming biz jurnos are reporting a fact, now you can discuss WHY? recession could be the answer

ATi_Elite2232d ago

......and gloom!

WoW times sure have changed! A doom and Gloom article that isn't talking about PC Gaming!

The Video Game Industry is a multi-billion dollar market, there's enough cash for everyone.

thorstein2232d ago

I can only give you one bubble and it was for intelligent. But well said!

Between these console doom and gloom, handheld doom and gloom and PC doom and gloom, you'd think that the entire video games industry (which is in the 10s of BILLIONS of dollars) was dying.


Anon19742232d ago

Ok, did no one read the article? These guys are 100% correct. We have no idea what console gaming is going to look like past this gen. Hell, even Microsoft was saying a couple of years ago - Don't expect the next Xbox to be like a traditional console. It may be more like an inexpensive, digital distribution hub. That was Shane Kim, while he was still the head of the Xbox, not that long ago.

No one is saying games are going away. I don't see how anyone who actually read the article could possibly think that's what they're implying. But past this gen, why couldn't games be built into our TV's as part of a subscription service. We could subscribe to game networks like we do movie channels. Distribution costs are eliminated, piracy is eliminated, expensive console development cycles become a thing of the past and revenue for the game companies becomes more stable because it's subscription based. Just like you watch the channels that have the hottest TV shows, you'd subscribe to the networks that have the games that interested you.

It's only a matter of time.

Tyre2232d ago

You see that's were ur r right, Nobody knows, period. Only Sony Nintendo and Microsoft know. So these guys are talking out of there *$$es. One think we DO know is that Sony have said that the PS4 will be disc based and that views of nextgen as Digital Online Only are too extreme and impossible. Consoles are far from being into trouble, hell this gen has seen an Increase of Console use compared to the previous gen. BS article.

DeadIIIRed2232d ago

Mass digital distribution won't be feasible for another decade or even two. The state of the American internet infrastructure just would not be able to handle the extra load.

HardCover2232d ago

"So these guys are talking out of there *$$es."

OH HEY! Sounds just like the comments on most of these sorts of articles where people read the title, skim the introduction, then use the comments section to express their opinions about whatever they feel like.

JaredH2232d ago

2012 has everyone so paranoid.

SilentNegotiator2232d ago (Edited 2232d ago )

Let's have a look:

*GameFly's biggest competition is the other cheap solution...pre-owned. And you actually get to OWN those games. And they "PREDICT" that Gamestop will close a bunch of stores. Shocker.

*Gene Hoffman "a provider of billing solutions for digital merchants" also "PREDICTS" that physical delivery will "be challenged very hard" because he gets his money from digital delivery.

*Nanea Reeves, Chief Product Officer at cloud gaming provider Gaikai, "PREDICTS" that the big three are going to start opting out of consoles (in their sudden dislike for money?).

.......This could not be anymore masturbatory and ridiculous. A bunch of people from businesses pretending to be knowledgeable about things turning out PERFECTLY for THEM.

Pintheshadows2232d ago

.......This could not be anymore masturbatory!? Do you mean inflammatory?

SilentNegotiator2232d ago

Nope, I meant masturbatory. As in self-serving and only to benefit one's self. I don't know if the word is used that way in every English speaking region, but I've heard it used (in a nonsexual manner) lots of times.

jspencep2232d ago

You are exactly right about these "analysts." Its so obvious that they are predicting themselves rich! I laughed out loud when the guy from GameFly predicted the demise of GameStop.
This is a pointless article.

dedicatedtogamers2232d ago

Lemme ask you guys something: would you consider the last generation a success? I'm talking about the PS2/Xbox/GCN generation. I think any honest person would admit that last generation was a big-time success.

Since clearly these folks are talking about sales, let's look at sales (rough numbers):

PS2 - 140 million
Xbox - 25 million
GCN - 20 million

So, roughly 185 million hardware units moved. Pretty dang good, huh!

But what about this generation? 360/PS3/Wii numbers (again, rough estimates).

Wii - 90 million and still selling
360 - 60 million and still selling
PS3 - 55 million and still selling

So, this generation, 205 million hardware units have sold and this generation isn't even over yet. Perhaps my maths aren't so good, but last time I checked, 205 million is a significantly higher number than 185 million. "Consoles are in trouble"? Right...

tee_bag2422232d ago (Edited 2232d ago )

What you've said is pretty much spot on. The console and gaming industry is the biggest its ever been in history!
These guys should know better but i'm not surprised from looking at their credentials - pure speculators at best, they have very little to do with the larger core of the video game industry and have absolutely zero influence with any direction its going to take in the future.

"Mike Vorhaus, Magid Advisors: “I think Nintendo will be the one to do what you are suggesting [opt out of the next gen]"

Umm Wii U already announced (not to mention Nintendo made a killing of profit this gen - as have the other platforms).
IMHO they need to get their heads out of their [email protected]

_Aarix_2232d ago

But I like doom, its a fun game.

+ Show (4) more repliesLast reply 2232d ago
Slade2232d ago

digital jerkoffs that are so insecure there share of the pie is only 15 percent..........

they would love to see consoles go down. It isnt happening

At least they were smart enough and not bias enough not to say physical games were going away

Saryk2232d ago


frelyler2232d ago

M$ billion dollar profits say hello dumbass.

Soldierone2232d ago

Didn't Microsoft just report 6.7 billion in sales from Xbox alone? really seems like doom to me.

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