Originally posted October 18, 2012
Making a next gen console checklist:
1 Sony cannot afford another expensive console, just look at this gen.
2 Sony cannot compete directly with microsoft, again, looking at this past gen.
3 They need to be able to provide a strong graphical upgrade, while
4 Simultaneously keep dev costs and console costs down
5 They need to be able to profitably tap into the expanded market, ios, android, pc
Extended goals:
Extended goals follow every playstation system. They are secondary battles that they often use their platform to reinforce. Ps1 was cd, ps2 was dvd, ps3 was bluray. Each time, they used their console to reinforce technologies in which they were heavily invested. That makes sales of all media increase. So,
1. Reinforce their pad, phone, portable offerings so that they can compete in a very lucrative expanding market.
2. Expand their cloud and streaming service, which helps their proprietary software and pcs.
3. Defend against the repeated biggest threat to gaming, used games. (not piracy)
So, how does Sony provide a massively improved console, while keeping hardware and software production costs down, while avoiding competition, and strengthening services over time?
1 They release a system that provides improved services rather than graphics.
2 They employ those services to increase the value
3 they position themselves in the market to take advantage of the market leader
And what services would be able to do that?
Cloud gaming and vita integration.
On my pc, I can use onlive. If I choose to do so, I will be able to run games without hard drive space required, run at a resolution I could only dream of affording had I bought the parts.
Similarly, a ps4 would be able to run games with vita integration at a similar resolution to wiiU, giving ps4 every advantage of wiiU save for the nintendo 1st party lineup. Then, should you choose to enable cloud mode, you could then have the cloud process your game serverside, granting you over 9000 resolution. Of course, cloud costs 10$ a month and 60$ deal for a year because you have to use psn+, but no big deal. If you don't have internet, fine too. You still have a system that provides great graphics, great services, and is a great deal since you're getting two libraries of games (vitas and ps4s)
2. How do you increase the value with those services?
Simple. Every game you make gets put on the cloud. From there, you have your blockbuster games on every sony screen, phones, pads, you name it. You also then offset used gaming somewhat since you're getting revenue streams from sources that can't be resold. You also get to tout your system as having the best graphics, and the best price, and full backwards compatibility. That creates value for the entirety of Sony brands.
3. How do you "position yourself to take advantage of the amrket leader", and what does that mean?
You release a console that is inline with the console that has sold the most units. The market leader will already have a lot of attention because it has install base buying power. It is attractive to develop for because the costs of development haven't increased too significantly, but being that the wiiU uses new ways to play, it allows for more creativity, which to devs means more chance to offset graphical development costs. ie; the katamari challenge; ie, good games can be made cheaply.
By setting your price and specs similarly to the market leader, you ensure multiplat games. Nintendo is expecting sony and ms to overshoot the market. It's been their strategy for the past 5 years. Graphical improvements see diminishing returns, and by wii undercutting the market, they forced a graphics war between ps3 and 360. Exclusives became a graphical faceoff to sell systems. Nintendo, by now making a ps360 level console, are expecting ps420 to increase dramatically again, but the problem is, at this level, you need to improve specs 10x in order to see 10% graphical improvement. That's just how good current graphics are.
You sit next to the market leader, let MS pour money into developing games (not that they've lost everyone), and let them sit in the corner. Maybe devs will make uber versions of games just for them, but they will only be afforded by the niche, the hardcore, which is a shrinking demographic in teh face of the casual explosion.
1) Cuts out the middleman gamestop, removes a big part of their revenue problem, used games. Will be able to offer games at a reduced rate. Have 'steam' sales
2) Allows them to save on next gen hardware. They don't have to be cutting edge, because the cloud will do all the work.
3) Anti-piracy straight from the server. Of course, there will always be hacks and pirate servers.
4) Allows them to focus more on their content.
5) Allows them exclusive ability to go third party without really going third party. They can put their high content games on ios, android, EVEN XBOX and WiiU, while the reverse cannot happen.
6) Gives them a transition back into their pc business, which Kaz said was a major component, also their phone and pad business.
7) Saves on all major secondary costs such as shipping, boxing, distribution, storage
8) This can all be done straight from their current hardware. No need to improve. Which means, if 360 makes major upgrades, it will be by itself, while ps3 and wiiU are able to run similar quality levels, making those two the major multiplat and base console devs choose over the fledgling 720.
9) Full backwards compatibility spanning all their systems.
