Profrektius said:
potato_hamster said: If you think they can model it off of the cell phone industry, you don't understand that the cell phone industry would be radically different if people had to pay the full price of their cell phones up front rather than spreading it over the life of their cell phone contract. If you think they can make their console a platform, like iOS, please let me know how many of the latest graphics intensive iPhone games run on the 5 year old iPhone 3G. The whole ecosystem is designed around people buying new phones every 2-3 years. |
Most places outside of North America don't use the same kind of phone contracts model, and people buy their phones unsubsidized every 2-3 years. Yet the phones still are very profitable. I don't see a reason consoles couldn't do the same.
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I'm going to need a source that the average smartphone owner person in say Austrailia or Japan or England or India typically spends $400-$1000 up front on brand new state-of-the-art phones every 2-3 years. Also, consider few things: Apple sold 231 million cell phones last year. (That is more than the PS4, X1 and Wii U combined will probably sell), and for every phone sold, they proft $150-$200. Therefore Apple's return on the investment of developing the phone and the infrastructure is seen immediately.
Now look at the current console video game market. Most console makers sell their console at a loss on release, and only end up making a profit on units after 1+ years on the market. Even then, that profit is typically, $10-$50 for every console sold. So the profit on hardware is miniscule, especially in the first 2-3 years. On top of that, when the average consumer buys a console, they spend $250-$400 (or less depending on when it's bought) and expect the console to play the latest games for the next 6-8 years.
Going to this model will a) make the price of consoles increase since console makers will expect a return on investment every 2-3 years as opposed to 6-8 (remember these companies are in it to make a profit, and the new model has to be more profitable than the old one). b) make a console's useful life decease, as developers will not want to be held back by console models 2 generations old. c) increase development costs as developing for multiple hardware specifications fundamentally increases costs in terms of testing, and lead to more engine work at the very least. So, this will likely increase the cost of games as developers are just going to pass this increased cost onto consumers.
Are you not seeing a problem here yet? The average console gamer does not benefit from this model in any way.
If you're happy spending $600-$800 on new hardware every 2-3 years to play games at better resolutions and frame rates you can already do that! The PC has all of these bases covered. Want the livingroom experience? Buy a steam machine! This option already exists.