Smartphne Apps and Social Media Apps hurt traditional gaming companies only in the short term as clueless journalists and analysts alike categorize the gaming revenue as somehow outside of the gaming pie. The ironic thing is, as far as dedicated console maker goes, Nintendo was always the only one left standing. Sony and MSFT aren't gaming companies, they are conglomerates with gaming revenue. MSFT and Apple are nearly on each other's turf most of the time, why isnt Appl's apps video gaming?
These small bite sized games are the perfect feeder market for potential handheld or console gaming. Even if they do not take the next step, parents that are in happy farms or angry birds ought to be much more understanding of their kids desire to play Scribblenauts or Pikmin. Even the smart TV movement is training a whole generation to interact with a screen, vs just passively read stuff off of it. Tablets are controllers, and millions will grab a Gamepad type device and not feel a bit awkward.
The awesome PC market was severely limited due to extreme high cost, super high barrier of entry (WASD plus Mouse is old school, even your typical COD guys wont play like Half Life guys any more). Console market of the future ought to have a much wider audience to draw from. And console makers themselves, though reluctant ought to embrace the Apps market as entry evel gaming, as well as effective marketing of various IPs. Pokemon is already trying to grab some of that delicious eyeballs stuck to smartphones during the silent dinners.
And let's not forget Steam. Wasn't cloud going to just obliterate physical console makers? And what are they working now? Oh, a CONSOLE!!!
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