I remember the complaints from the start of this generation.
- Wii "waggle"
- $60/year for LIVE (aka premium online gaming"
- "Achievements are ruining gaming."
- Price hike from $50 to $60.
- DLC and downloads.
Now look at gaming. PS3 picked the first four habits, and Xbox came out with the kinect. Downloads are always a concern for collectors and are something of which we will be wary.
Look at us now! Paying for online service isn't too big of a deal. Achievements have us addicted to picking up every new release (even sports titles), and some of those arcade download releases are must haves.
Console design, marketing, and sales
Bump #1
I do not envy console makers this time around. It seems like something as long standing as watching old-fashioned television has changed as the big screen has to compete with tablets and smartphones for viewers attention. Gaming requires dedicated attention, and if you're an online gamer who shares living quarters with others, chances are you put your life on hold... one match at a time.
Bump #2
Used game sales is a big thorn in the side of the industry. Companies like GameStop can attribute their entire profit structure to the resale of used games... often selling the same disc 5x over. Even Wal-Mart, Best Buy, and amazon.com are digging into used games with mixed success.
We've seen the transition to DOWNLOAD ONLY coming for some time now, and developers have taken different approaches. EA kills their sport servers after two seasons. Meanwhile, companies like Epic try to make sweet deals for new game buyers with one-time downloads, like the Gears 2 "flashback" map pack.
I'm quite certain developers would like the download-only structure because it involves direct sales. Resale only gives profit to the reseller. With how popular online gaming is now, the thought of being require to be online to play is not that big of a hurdle; especially for the people who will continue to buy new games.
Personally, I would like to see the return of the $50 price point if they are going to want to make progress on cutting out used sales.
Bump #3
Retail. Traditionally, console sales have been subsidized. For the first year or two, console makers lose money on each unit sold. . For the console maker, the profit comes from software sales, and after 10-12 titles purchased, the cost of the console is offset. Meanwhile, retailers also don't see any profit in console sales, only occupied shelf space. They see a modest profit on software sales (on part with music and film) so carrying the hardware is necessary to promote software sales.
The problem for console makers is that if they cut out physical discs is that retailers will be less likely to sell their hardware. Keep in mind, this past generation Wal-Mart became one of the biggest retailer for video games in the US.
Timing
In the past some big announcements have been teased before E3. The Wii remote stands out in my mind. I think this gives the media several weeks to chew on it before the big show. Otherwise, the shock becomes overwhelming.
Author
