I thought about putting this in the news section as an editorial, but is it too long and too strange I think. Let me know what you think though. I'd rather have it as a discussion, since I'm working on something else as an editorial.
In the history of videogames, the relationship between hardware manufacturers and software manufacturers is often referred to as an ecosystem. The terminology is apt, because in each console’s ecosystem lay a number of business habitats which give birth to new creations in gaming. However, much as in life, environments in business change. When one structure becomes too polluted, too convoluted, too complex, or too insulated – environments must change. While each console released can be easily thought of as a unique environment, I think of hardware manufacturers as ‘city planners’, who have to learn from their mistakes. If those in charge of the ecosystem habitats do not change what went wrong, they will be losing the variety of business strategy and games that work in that environment.
Looking at the way Nintendo built it’s ecosystems from the days of the NES to the Wii, I see the following. Originally, consoles were designed to meet only certain needs, and certain demographics. When compared to an ecosystem, it is apt to use a city in the early 1800’s designed around horse and buggy transportation. Those who lived 20-30 miles outside the city always had the potential to become involved in the insular affairs of the city, but rarely did. However, time brings about radical changes to technology. In the middle and later 1800’s locomotion, trolleys and steamboats made the transportation ranges of people far greater. People within 10-15 miles of the city center now became involved in the economic activity of the market. Sega, to me, saw the increased potential in the videogame market during the age of the Genesis – sports, more casual games – and expanded the ecosystem to include more people, much in the same way modern city planners began designing around new transportation methods, while more conservative planners – like Nintendo – knew the old method would still work. While the old guard of planners foresaw changes to come, they appeared to be holding out hope for longer lasting, and more universally accepted new technologies.
This new technology came to both city planners and the videogame industry in the next generation – in the form of cars, and CDs respectively. In both scenarios, inferior technology for what was needed declined, as did the manufacturers of both technologies – most railroad companies severely declined in wealth between 1900 and 1930 in the USA, and Nintendo’s cartridge games declined in the face of Sony’s CDs. Those stuck in the middle (Sega, steam engines) had not been around long enough to survive the onslaught of new technology, and the old money of the original technology. In this the power of the middling companies largely disappeared, and the new technological innovation took over because of the benefits it offered. In time however, the primary ‘old technology’ rebounded a bit as it was used for other functions than originally intended (N64 sized memory cartridges in handhelds, trains used for shipping goods – not people).
During the next generation, the successive technology of the last generation became so widely used that people began to wonder whether the standard could ever increase. While Nintendo continued down it’s path (trains, subways, etc), and Sony continued down it’s path (cars), new entrants came in to the market to attempt to block and limit the success and potential success of others for providing services in the ecosystem (say Microsoft invented hybrids because the city was losing tourism money to Sony’s gas guzzlers which clogged city roads all day and Nintendo’s run down trains which stopped running on time). Despite the minor technological innovation of this time period (1935-2015 say), the main characteristic was stagnation in innovation with intense competition (PS2,Xbox,GC,DC). In some sense, this is how videogame history is roughly and abstractly compared to how American cities were designed over the last two hundred years based on new technology.
After reading the above assessments, you may wonder what it means for the current consoles. Well, if applied to the design of cities, I think it would go something like this. The two rival companies providing transportation have just unveiled very sophisticated new cars. What are these new fangled vehicles? Cars of course – but with one catch – they run on new types of pollution free energy. Because of the energy war however, no one knows whether the (absurd) super expensive hydroelectrically fueled cars (PS3), or the (absurd) expensive nuclear reactor fueled cars (360) will survive – especially since the parts manufacturers (3rd parties) are largely unsure of what to support. In the meantime, the largely forgotten train manufacturers (Nintendo) have invested their money in an innovative new way to get around designed to steal a segment of people who need to get around but have less money – a cheap 4 player pedal powered personal airplane. The airplane runs on pedal cycles per minute, so it is designed as a low-tech fuel efficient social machine (compares to how motion control works better with friends), but it is also practical for a strong traveler (or certain type of gamer who likes to be active but enjoys single player games as well). Because the machine is cheap, small, easy to use, and travels very fast it becomes a huge hit – catering to those who only need to walk or travel short distances (~50 miles). Right as the local distance use appears to be limited; the train manufacturer reveals that anyone who bought the machine gets free subway service (virtual console, Gamecube, Wii’s AAA offerings) anywhere in America. While not offering the same range as cars, because of the price difference and positioning, the flying machine switches the public interest away from the expensive new cars, as the parts manufacturers scramble to support the diverse needs of the new machine’s new demographic. For those who can not switch, older cheaper cars continue to be reliable alternatives to the new fangled gadgetry (PS2, DS, PSP).
People are difficult to govern because they have too much knowledge.
When there are more laws, there are more criminals.
- Lao Tzu
