Saturday, April 28, 2007

Video Game Industry: The Consoles (Part 4)

Future Trends

As I have briefly mentioned in the introduction, console-based games are now becoming more and more online. The consoles themselves are platforms to connect people in a global scale. Compatibility may become a problem since the big manufacturing companies (Sony, Microsoft and Nintendo) are not currently able to communicate to one another in the realm of online games. Today, customers are restricted to their chosen console which has its own community.
For instance in the next-generation consoles, we have Microsoft’s XBOX Live, Nintendo’s Wi-Fi Connection, and Sony’s Playstation Network. Each represents a source of revenue stream that could provide one an advantage over the other. Having collaboration among these three networks alone is going to benefit the industry as people do not have to choose sides, and are able to “talk” with one another regardless of the console. Therefore, having one online community instead of multiple is the way to go. I do not see this happening in the near future because of the stiff competition and big egos these companies have.

Console hardware is constantly becoming a mini multimedia center, offering more functionality other than just playing games (just look at the next-generation consoles). With the ability to have internet access, the consoles have become a tool for people to socialize and relax at the same time. You can get almost anything at your heart’s desire in the internet.

The online communities in the console world are also steadily increasing. Although this online model is still a fairly new concept to most console owners, I believe that it is the direction the industry is heading towards in general. The console segment will have an overlap with online gaming and PC gaming due to the reach of internet. Game developers and publishers will lean toward multi-platform online games as there are more market shares to grab in this segment rather than the generally offline console games.

Future of the global video game industry is very bright with a growing consumer base and interconnection around the world. The internet has become a platform for the industry to expand. Console, PC, and online games will all converge to become, well, online. Humans are social creatures, so it is just natural to have more interaction in video games. There is bound to be some cultural differences when such globalization takes place, and the game industry is not an exception. Even though online is the future of gaming, people still come from various nationalities and backgrounds and each has his/her own expectation. Adapting to each other is the key success factor in having a thriving game industry.

3 comments:

Anonymous said...

Would the fact that the convergence of TV and PC be a problem for the console industry? With more and more features that could be shared among PC and TV, wouldn't people want the more convinient way of just downloading an emulator and plaing the games? When this happens, illegally downloading games will be inevitable, which could be a huge hit for the console industry, since game is where the industry makes most of the money.

One possible way may be to utilize the online feature. Right now, the console is charging extra for online use. However, if the console gives away the online access for free, but at the same time require to "sign-in" online to play the games, the piracy problem may be reduced. Right now, since signing online everywhere can't be done flawlessly, this may be a problem; but I think in the near future, going online will be as ubiquitous as going outside.

MiG@SC said...

Creating a global video game network would certainly be welcome and could lead to incredible growth for the industry. What I'm wondering is what types of cultural differences/ difficulties would have to be overcome in developing such a network? You mention at the end of your post that there would be cultural issues to contend with, but could you provide some examples?

Peony Lai said...

Regarding the one online community, I was thinking about that too because it will benefit the game industry as a whole, and game developer/game publishers do not need to worry about the formats. The standardization of formats will create a healthier competition since developers/console manufacturers compete against quality, and obviously, it's going to benefit consumers. However, that might take some time to be achieved since the 3 main players, Microsoft, Nintendo, and Sony are still trying to steal the whole pie.

Anyway, for some reasons, I don't think games in general will have cultural problems because language barrier is not so crucial in the game industry. People who play foreign language RPG games do have their ways to figure out the language, and many games you don't necessarily need to understand the instructions since you can test and try. But of course, games that imply political problems might have serious problems.