Next-Gen=Bad Business?

It's the way it has always been in the gaming industry. A console launches to hordes of fans grappling to lay their hands on those monstrous boxes that house the latest and greatest video game systems in the land. For the next four years game after game is released, played, tossed into the trash then the process is repeated. As the console's life rolls on games begin looking better than the initial efforts seen at launch, third and fourth generation games looking almost nothing like what the first games on the system presented to players. Then there are the inevitable price drops which help push the given system (or systems) deeper into the consumer market as sales charts almost assuredly spike at the news of a reduced price tag for the system that was once too expensive for Little Johnny. Simply put, it's the way our industry has always been, and it's likely the way it will always be.

But this generation is proving to be a beast of a different color, a monster of a different size, and it's due largely in part to the two top dogs in the industry Sony and Microsoft and their new consoles, the Playstation 3 and Xbox 360 respectively.

Typically when companies launch new consoles they're prepared to take some kind of a loss with every system that they move off of store shelves. What it comes down to is the fact that each console is sold for much less than the sum of its parts. But even still, the price tag that these companies have slapped on their new hardware gems could lead to less market saturation than any consoles that we've seen in quite some time. With the Xbox 360 retailing for 400 dollars, which will later increase to around 600 dollars if you want that HD-DVD add-on that Playstation 3 users get bundled with their system in the form of a Blu-ray player, that means that both systems will be flying off shelves at twice the price of their successors which were released in 2002 (Xbox) and 2000 (PS2) at an MSRP of $299.99.

What we're getting down to here is the point of this article, the one undeniable fact that has remained absent from next-gen discussions until right now. That being that next-gen gaming is actually bad for business and just may very well be a plague on gaming itself.

[mikeeno7]

How pathetic. I hate the ending of the article. 'Choose your side'. Why would you want to choose any side? I'll say it again people, buy all 3 and reap all the benefits. If you can't afford all 3 then you're not alone, but it's worth saving up for, isn't it?

[TheMART]

I have the money for all three, but why should I?

Just calculate with me:

360+extra Wifi Controller = 450 Euro/dollar
PS3+extra BT Controller = 650 Euro
Wii+extra WiFi controller = 300 Euro

Total: 1.400 Euro's/dollars, not one game bought yet. I won't even speak for online fees, because they will also be on PS3, only basic things like XBOX Live Silver are free.

So buy 4 games for 360 times 50 to 60 dollars, 4 games for PS3 times 80 dollars and 4 games Wii for 50 dollars. That's another 640 dollars/euro's at least.

Total already 2000+ dollars/euro. One must be out of his mind to do this. For the same amount of fun one takes only the 360 maybe with the Wii. That'll cost the same (with todays prices) or less (with lower prices on 360 this Christmas) as one PS3 AND it saves you money on every game compared to PS3 BR disc games.

So should we get all consoles? Nope I don't think so. The amount of money to spend on it sounds stupidly high because of the paystation

[TOM]

I for one have no problem with the price of the psp,360 or wii.seems to me that the product is well worth the price,and the price of games didnt go up for what....A DECADE. Seems reasonable to me. Gaming is well worth the price of admission.

[Marriot VP]

when are people gonna stop using that HORRIBLE PICTURE, that grosly makes the 360 look 2 times bigger than the PS3. When in actuality the PS3 is the biggest console by far.

[ChickeyCantor]

Wii isnt nex-gen they say ....its new-gen.

[Marriot VP]

well your right about the not next-gen.

[ChickeyCantor]

NEW-gen kinda means its going an other direction.
NEXt-gen is kinda the same like the previous generation. nothing special about that.

[G_CodeMonkey]

The controller, while avante garde now, will have limited use in the end, once you get past the light sabre-type use (while cool, yet niche). And if it works, the other two consoles (that are next-gen) could adopt--only problem with that is game co's don't want to write for something not included in the box.
Sorry, Nintendo, but hi-def DOES matter to me. I won't be buying a Wii--my 360 has me in gaming goodness well into next year (Gear og War, Biosphere (or whatever it its called--I'm getting it day 1), etc. Once Prey (and Dead Rising) are in the bargain rack I'll grab them also--I'll be done with Quake4, Half-Life2 and Doom3 by then. On Dead Rising, can destroying zombies with the gun ever get tiring??? gCM

[THAMMER1]

You will buy what you can. If people love to game it wont matter what console you by or whose picture is bigger than the other. What matters is the games. I have said this over and over again "Brand loyalty has no business in the video game industry!" People who cling onto a consoler maker are usually children with no experience with previous console generations. I own a 360 because it offers what all of the pervious consoles offer plus the next gen promise of better games and more immersive experiences but with the other offerings it seems to be more about corporate drive and gimmicks. But the smart people will by what makes the wallet and the gamer happy.

[Marriot VP]

give me a break thammer, all I said was that I'm sick of seeing that picture. I know the size doesn't matter but it's annoying.

[The Real Deal]

I posted the article with NO PICTURE....then somehow that same picture appeared next to it when it got approved. lol....We need to find a better picture with the consoles next to eachother.

[Marriot VP]

well that's interesting

[Balance]

yeah but if you do that you wouldn't be able to see the wii because you would have to pan the camera out so much to see the refigerator size ps3..lol
new picture would be nice. not that console size matters anyway, would anyone really care if they had a system the size of a big stereo amp, no they wouldn't if the system and games were awsome.

[dikturbo]

The biggest complaint about the X1 in Japan was it's size. Show them how it will fit in their component racks (or not). SONY just tells the Japanese market 'jump'and they still say 'how high'? I don't get it.

Gaming site journalism is not journalism, they must break every rule of the AP (associated press). Intended or not, that's misrepresentation and if this was a credible newspaper or editorial publisher it would be considered such.
Find a fair photo.

[kewlkat007]

I didn't notice that picture till now, its actually funny.

Anyhow thammer1 is right, who cares about this brand loyalty stuff. It is moslty little kids born in some generation only knowing one system thier whole lives only to see a new Console come along and treat it like it's an alien invading or a virus or something(hey lets flame it).
I've been playing video games for more than 17 years and have seen most consoles hit the market and have had all but certain few.(never had the neo-geo or Jag or 3DO), I was poor back then, well mommy didn't have that kind of money.

If you truly like video games then you will get most consoles regardless of Name. Just cause you wanna play that game, whatever that may be. If you can't afford it then you might as well wait. Get something cheaper.

Back to the article..It raises some good points. The fact of the matter is development cost are soaring. That is effecting us the gamers in some ways. The gaming prices will be higher but a good thing is you well get to choose which one you wanna buy for what consoles as the developers do not want to limit thier profits.

Another good thing is that developers will work harder on exclusive titles because thier market will have shrunk to one console so they need to come out with really good product. Does that mean ported titles from console to the next willnot be a great? Not really but it's going to take more work as you need 3 developing teams. Then you working with time constraints, and all sorts of "costly" issues. Now if the game sucks and it doesn't get good reviews then your screwed. Employees still need to get paid.

So I can why developers or picking, choosing or droping games depending on the situation right now with these 3 next-gen/new-gen consoles. There are some Pros/Cons depending on who your looking at. We all know Consumers are the most important.

[timmyp53]

just by technical margins

[TheMART]

I have the money for all three, but why should I?

Just calculate with me:

360+extra Wifi Controller = 450 Euro/dollar
PS3+extra BT Controller = 650 Euro
Wii+extra WiFi controller = 300 Euro

Total: 1.400 Euro's/dollars, not one game bought yet. I won't even speak for online fees, because they will also be on PS3, only basic things like XBOX Live Silver are free.

So buy 4 games for 360 times 50 to 60 dollars, 4 games for PS3 times 80 dollars and 4 games Wii for 50 dollars. That's another 640 dollars/euro's at least.

Total already 2000+ dollars/euro. One must be out of his mind to do this. For the same amount of fun one takes only the 360 maybe with the Wii. That'll cost the same (with todays prices) or less (with lower prices on 360 this Christmas) as one PS3 AND it saves you money on every game compared to PS3 BR disc games.

So should we get all consoles? Nope I don't think so. The amount of money to spend on it sounds stupidly high because of the paystation

[NJ1307RSX]

A regular Person who wants all three would buy his/her favorite at launch (PS3), then about 1-2 years later buys the second most appealing (xbox 360), and finally after about 3-4 years buys the last one when its dirty cheap (Wii).

Then you'll only spend about:

$500 PS3
$250 Xbox 360
$100 Wii
Total: $850 but that's only if you're smart something that themart OBVIOUSLY ISN'T.

[TheMART]

So you're smart guy huh? Even with the downgraded prices, the PSZero takes a too large share in the total amount of money spend.

That's my point. Thanks for making it again.
WHY SHOULD ONE BUY A CONSOLE THAT'S AT LEAST TWICE AS EXPENSIVE AS ANOTHER CONSOLE THAT DOES THE SAME

PS3 at launch is 600 dollars, or will you buy the retarded one? Then you're really dumb. After 3 to 4 years one wants the next-next-gen the XBOX 720 and no Wii with still xbox 1 graphics.

Damn you're not as smart as you think you are

[NJ1307RSX]

Microsoft doesn't Plan to launch the next xbox till another 4-5 years Pass because it wants to make money off it this time around.

Also the $500 PS3 has wireless controller, 20Gig HD, Free online, and Blu-Ray, DVD, CD, PS1, PS2, PS3 built in. Making it a good buy for the average customer.

You sound very dumb by the way.

[TheMART]

the 500 dollar/euro PS3 misses the so important HDMI 1080p output as SOny calls the real HD output.

While all games are in 720p actually. LOL
a 400 dollar 360 has a WiFi controller, 20 GB HD, Free online basics (you believe Sony online will be free completely? Then expect something like PS2 sh*tty service), DVD, CD and is next gen.

Doesn't need a non standard BetaBluRay (what if it will turn out to be the next Betamax? That's sh*tty again!). PS1 games? You don't keep your PS1 or PS2? Do you ever play a PS1 game nowadays? Nice to hear but nobody uses it in the end. You want next gen gaming right?

500 dollar PS3 is for retards like you. You don't even sound dumb. That's just me. You sound like being an amoebe

[TheMART]

oh yeah, xbox consoles have a life cycle of 5 years. 360 is almost 1 year here. Around 2010/2011 is the time for a new one. Fiscal year 2008 (which starts July 2007) will start earning money on 360 for MS they stated.

[NJ1307RSX]

the $600 PS3 but the $500 PS3 is best for the average customer who can't afford the Premium one like you.

I really don't think ms is going to make any money off the 360 but we shall see.

BTW you sound like a dumbass 360 fanboy.

[TheMART]

Nope you're amoebe like brain really doesn't work. Actually what's the use of a BetaBluRay paying for in the 500 dollar PSZero when there is no HDMI 1080p output? Yup. Totally useless retarded.

So pay 400 for a 360 and get more. That's best for every customer.

MS has a better businessmodel then PS. Sony has 10 to 20% yields on CPU. That's sad. MS/360 has 90% yield on their CPU. That's good. Problems with lasers of BR, no good. Great Live service on 360, attach rate of 4.5 games on every unit. Compare that to 1.9 attach rate on PS2.

MS is going to make money off the 360 and really soon.

You probably do not only sound like a primate ape, you actually will look like one also

[NJ1307RSX]

See what I mean you must have 5 IQ if you think ms is gonna make money of the 360 just like they did of their xbox 1, huh. 4 BILLION DOLLAR LOSS, Expect even more this time around as costs go up for making next-gen systems. Ms is soon gonna go broke.

BTW you probably look like a Spotty little geek sitting in your old windows 98 ms computer, little nerd. Get a life, you can start by buying a PS3.

[kewlkat007]

MS will not go broke, are you crazy? Or just a fool(oh yeah !you only have 2 choice). Every console loses money early on and the fact that the xbox is out for second round, shows thats its here to stay, buy your PS3 and learn to shuddup and play.

I will do the same with all 3 systems.

[NJ1307RSX]

that you're buying all three systems, i'm doing the same.

But until i get proof that ms won't lose money like they did with the original xbox (4 BILLION DOLLAR LOSS), I can't agree with you.

[NJ1307RSX]

You might want to read this article before answering back:

http://www.marketwatch.com/...

[ChickeyCantor]

STOP PRETENDING LIKE IF YOU CAN TELL THE FUTURE!
xbox this, Pszer0 that!
...........nintendo.........: D nintendo :D:D:D:D:D:

i think its sad how you ppl go and do like if you are the seller and the costumer at the same time! what is wrong with you ppl!
get your freaking console and STFU about it !!!!!

does it matter IF MS makes his money or not ?
does it matter IF sony is getting there money or not!?

the bottom line is :
when you got your console why even bother defend why its THA best and why it will RULE.
just turn the damn thing on and play your games !!!!!!!!!!!!!!!!

----------------------------- ----------------
news Flash!
14 year old kid stabs bestfriend who said something bad about his Ps3! although the 14 year old kid did suicide after he found out that Sony doesnt uses Rumble, I guess he did a massive damage ;)!.

its always the small thing ppl fight about and never realise thats all for a piece of machinery............UGGG!

[kewlkat007]

Analyst also said that the PS wouldn't fare well with it's pricewpoint too.(but I don't care about them)I don't know the future of who will or will not buy. Who worries about a company loosing money? After we are talking about "Microsoft" here.

With all that Money MS has, I think the xbox 360 is the only system capable of competing with the Sony. I don't care about the hardware/cell/pixels this pixal that.
Competition is good for the consumer. This is America and if you want prices to stay competitive(low) you need it.

PSone got lucky and did well. Ps2 had no competition as my lovable dreamcast went under and N64 didn't have much titles.
Then Xbox comes out with better graphics then the PS2 and(Xbox Live) which PS promised but didn't deliver. It has been an uphill battle from the start as the PS was backwards compatible with PSone games and had lots of 3rd-party titles.

Now sony on it's 3rd system and MS on its second. If MS didn't have deep pockets it wouldn't of been around this time, and it would of been PS3 and Wii(great comparable competition I tell ya)(it's like a pentium 2 going up against a 3ghz machine with decent graphics cards.)

MS is dedicated to becoming on par with PS while PS is a "generation" ahead.(PSone) Not bad for a second generation console. Alot of titles I wann aplay for the 360. As for PS3 you already know what I feel about that.

+1 Has the game library.

-1 I don't need blue-ray right now.(no 1080P tv for me)(Super Storage does not make or break a game)

-1 Online won't be great as promised.(If MS had issues what makes you think they won't)
I don't believe anything free is free of bugs and qirks or even the best.

-1 I like the PS controller for fighting games.(anything else I don't like the position of the Analog)I prefer 360 controller for all types of games, especially FPS and racing.

+1 Backword/Compatible

-1 Sony arrogance("even if it didn't have games, people would still buy it") He was talking to fanboys not myself.

In the end Sony will be worth it for the games but for now for anything else, xbox 360 is just as good (IMO). For anyone on a budget its the bang for your buck (IMO).(non-fanboys)

There are lots of reasons why the best Hardware doesn't always come out on top. (Neo-Geo, Jaguar, Panasonic 3DO; where are they now? Nintendo stood up to them all.