Gaming BUSINESS MODEL is changing, no more X360 sucessor

[mike_intellivision]

A few thoughts.

Gaming in other devices is not a new idea -- see Nuon (http://en.wikipedia.org/wiki/Nuon). Also, the multifunctionality of machines has always been there (playing CDs, DVDs, and BRDs).

VoD are also not new. PPV movies and events, dating back to the late 1970s, early 1980s (http://en.wikipedia.org/wiki/Pay_per_view). Nor is the current interactivity as QUBE was tested three decades ago (http://en.wikipedia.org/wiki/QUBE).

What has changed is how commonplace these technologies have become. This has happened because of the continual computerization and miniaturization of electronic components (in my opinion -- but probably in fact as well).

Also, what should be noted is that the first attempts on some of these technologies failed from a commercial standpoint. Just because something can be done does not mean that the public is waiting for it to be done. And the public is much more likely to be the Wii owner who has Wii Sports, Wii Play and 3-4 other games and is not hooked up to the Internet than the person who spends hours playing games on-line on multiple systems.

By the end of the year, all three consoles will have some sort of VoD service (for the Wii - see: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/12/AR2009031202948.html). This is the beginning of a process that may take a decade or two, depending upon the diffusion of high-speed Internet, the combination of technologies, and the general status of the global economy and environment.

Mike from Morgantown

PS -- How many people use their laptops to surf the web or do work while watching TV? I do and my wife has started to do so as well.