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Forums - Sales Discussion - EA CEO: Consoles Now Only 40% of Games Industry

The current console generation is already longer than previous ones, and other than the Wii U, no new consoles have been announced. And some would argue that Wii U is not really 'next-gen' since it's basically on par with PS3 graphically. Does this mean Nintendo is launching too late? Speaking to IndustryGamers, EA CEO John Riccitiello said it essentially no longer matters and that consoles aren't even the dominant force in gaming today.

He began, "I would argue that one of the least interesting things about the games industry was that every 5 years you’d see a new console or platform from everybody at about the same time with about the same or similar upgrades or services. You’d sort of harvest it and then it’d cycle back. We got used to it. It’s what seemed normal. But it’s not a particularly smart way to run an industry... bulges in technology investment followed by harvest.  And let’s be realistic. Consoles used to be 80% of the industry as recently as 2000. Consoles today are 40% of the game industry, so what do we really have?"

"We have a new hardware platform and we’re putting out software every 90 days. Our fastest growing platform is the iPad right now and that didn’t exist 18 months ago. So the idea that we’re categorizing the industry as being [cyclical]... Nintendo is off cycle with what? I mean, the point of reference is gone. And so Nintendo is bringing out a new platform that brings together some of what we’re learning from new media and new platforms like the iPad and then integrating that with a console. It’s the perfect time for that in the industry," he added.

Riccitiello continued by noting the diminishing returns that increased horsepower has for many consumers. The CEO likes raw power and graphics as much as the next guy (and EA's retail products continue to push on that front), but after a certain point, the power upgrades become inconsequential. 

"I think there’s going to be an interesting debate when you get to processing power beyond what you can push up with a 1080p or a 720p [system]. Most people squint between 1080p and 720p, because what’s the difference, seriously? I would argue that there’s more to be provided in terms of value for the consumer in micro-transactions and social experiences and driving those better in cross-platform gameplay between a console and a PC and a handheld device and a social network than there is supercharging graphics," Riccitiello remarked.

"So I think that the pattern against which Nintendo is no longer resonating is over anyway. The idea that we’re going to see the need for step function growth in graphic performance as the pace setting aspect of the sector is no longer the most important thing. But I think it’s important. You’ve seen the Battlefield demos. Look how much better they have to look. Look at Need for Speed. There was a point in time where we were talking about the uncanny valley - we’re on the other side of realism now. And after a certain point it’s like - I do not need to see my LA news announcer’s oversized pores when I‘m watching the news. There‘s a point where it just gets to be [too much]. I always liked the power, but I don’t know if it’s the story anymore."

http://www.industrygamers.com/news/ea-ceo-consoles-now-only-40-of-games-industry/



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Thus the end of the console is coming to an end. No point in arguing it. It was a great concept while it lasted, and helped make sure the industry drove hardware forward. Now it is time to focus on games.



Stop hate, let others live the life they were given. Everyone has their problems, and no one should have to feel ashamed for the way they were born. Be proud of who you are, encourage others to be proud of themselves. Learn, research, absorb everything around you. Nothing is meaningless, a purpose is placed on everything no matter how you perceive it. Discover how to love, and share that love with everything that you encounter. Help make existence a beautiful thing.

Kevyn B Grams
10/03/2010 

KBG29 on PSN&XBL

I'm glad to hear him say it to the public, hopefully he is pressuring Sony and Microsoft to bring more innovation to their next generation of hardware rather than just pushing the graphics to the next level.



He makes some valid points. Though I think for anyone to say that Microsoft and Sony only focus on graphics and don't innovate is narrow minded.
I agree that it's all about games but what I think the consoles represent is an avenue or a choice for someone who wants to play modern games but has a limited budget.

It would be ideal if everyone could afford gaming rigs, portables and tablets at the same time but it's simply not the case for most people therefore I predict that consoles will be here to stay for the foreseeable future.



 

 

The future of consoles is an interesting topic. It's really hard to say what we'll see even 5 years from now. Tech is moving so fast and the increased power is forcing game makers to look in other places, I imagine that's a large reason for the rise of $1 games and $10 indie titles. Most just can't afford to enter the disc market anymore.

I can see consoles next gen being more about the downloadable titles than the disc based games. Downloadable titles being more like TV shows and disc games being seen as big budget movies by analogy. Not to mention free to play micro-transaction games (Ghost Recon WiiU and TF2 PC for example) becoming more popular.

He's right, though, graphics are at the point where people can't really tell anymore anyway. Uncharted 2 is an example of a game that looks great: while not technically impressive compared to PC stuff, the semi-realistic art direction makes it look far better than Witcher 2 (in my opinion). I may be crazy and wrong about that but I don't care. I'm sure 99% of the people out there don't either, including graphics whores. Crysis 1 still looks amazing 5 years later; we're just splitting hairs at this point.

And the drop in console popularity can be partially placed at the feet of developers. The Wii brought in a TON of people curious about gaming, and were subsequently treated like 3rd rate shit by the developer community. They shot their own foot in that particular case. Oh hey people that are new to games, let's make our D-team ambassadors to these people! Let's sabotage the efforts of the fastest selling console in history! As the Emperor said: they'll be paying for their lack of vision, for years to come.

But one thing he doesn't really touch on is that consoles are also evolving and changing with the times. They're not just boxes in front of the TV. They're media centers, social hubs, gaming hubs. MS is going to make (I think the one coming up) a Windows OS run xbox. Who knows how far that's going to go. Nintendo as always will be game-centric, but MS and Sony have no problems branching out in crazy directions. We may see a time when people buy consoles for things besides games.

There's a lot of things at a crossroads now, not just consoles. PCs, laptops, cable/satellite tv, phones. physical media, hard drives. 10 years from now this conversation might not even make any sense. 10 years ago this conversation would sound like science fiction.

Hell, we're already at a point where people are starting to question the need for TV.



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Of course it is. The other 60% are covered by the DS, 3DS, PSP and upcoming PSP Vita.



Above: still the best game of the year.

I didn't read the article (have to head out in a few minutes) but I'm assuming its because they're counting tablets and every smartphone as a gaming system, which is total BS but whatever. Enjoy Angry Birds, I'll go play Uncharted 3 when it comes out.



That percentage will only go down with time.