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Forums - Gaming - Gaming BUSINESS MODEL is changing, no more X360 sucessor

dharh on 17 March 2009

Part of the point of a console is that developers have a specific target of the capabilities of the console. 100s of Millions of PCs out there yet only a few million might be able to run your game.

So yeah the console might look more and more like a computer, but its less like a PC and more like a MAC. Custom OS and accessories that only work with that console.

Microsoft might try the model of putting an XBOX into consumer electronics but I doubt Nintendo and SONY would for a long time to come. We are definitely going to see a Super Wii and a PS4.



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ssj12 on 17 March 2009
Gh0st4lifE said:
shio said:
In other words, PC gaming is going to absorb Consoles. That's what many people have been saying in the last couple of years.

 

Almost the opposite. Multimedia activities are going from the PC to the living room, whether through consoles or through Tivo devices.

PC is a solitary experience (lol), whith a complicated interface, and too much piracy / naughtyness, etc.

 

PS. Why do you think PS3 came up with the lame "This is living" ?

 

And you think consoles dont have any piracy? *looks at the Sony PSP, PS2, all previous generations of consoles.

And no pron in the living room.. please, you can look at porn on the PS3's web browser so we have complete access to the "naughtyness"

PC will evolve into smart homes though.



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kibebr on 17 March 2009

But PC is too generic and has no Ergonomy (yet) to become Media Center with eazy operation, I think a embedded PS360 on a HT will do the job easier and cheaper... I am right?



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dharh on 17 March 2009

The main point of a PC is that its generic. You can do whatever you want with it, anyone can develop on it, you have multiple operating systems, multiple hardware avenues. All things almost never done on consoles.

Consoles are becoming more PC like only in the fact that some of the hardware (hard drives) and many of the functions that were done on PCs are being done on consoles.

There will always be a market for both. There may or may not be a market for putting an XBOX/Playstation/Wii into a DVD player or set top box.



A warrior keeps death on the mind from the moment of their first breath to the moment of their last.
Squilliam on 17 March 2009

The internet will kill the PC game market because every PC hooked up to the internet in that fashion is technically a console.



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Onyxmeth on 17 March 2009
shio said:
Gh0st4lifE said:
shio said:
In other words, PC gaming is going to absorb Consoles. That's what many people have been saying in the last couple of years.

 

Almost the opposite. Multimedia activities are going from the PC to the living room, whether through consoles or through Tivo devices.

PC is a solitary experience (lol), whith a complicated interface, and too much piracy / naughtyness, etc.

 

PS. Why do you think PS3 came up with the lame "This is living" ?

The fact that PCs are shifting into the living rooms only strengthens what I said. And Consoles are becoming more and more like PCs, and if this keeps going they will actually become PCs.

There's a reason why PC gaming is probably increasing faster than the console industry.

 

Well to be fair, its more accurate to say the two worlds will continue to merge as opposed to one overtaking the other. A PC-like console hooked up to a living room TV is more of an amalgamation as opposed to leaning towards one side.

 



Tag: Became a freaking mod and a complete douche, coincidentally, at the same time.



kibebr on 17 March 2009

Yeap Onixmeth, I think you are right, is´t kinda turbo, more open media X360... I hope it come soon..



PSN: franco-br
MGS4, GH, MW2, GT5p, WipeoutHD, etc..etc..

Gh0st4lifE on 17 March 2009
shio said:
Gh0st4lifE said:
shio said:

Retail is a very small part of PC gaming - It was only 30% of PC gaming revenue in 2007, and it should be much smaller today. This is due to the shifting of revenue to digital.

Digital and Online Revenue is increasing much, much faster than the console industry. PC's Digital Distribution Services such as Steam and Gamersgate increase over 100% yearly, and China's Online Gaming Revenue was up over 75% in 2008.

Hell, even EA's CEO came out and said PC Gaming was growing faster than teh Console Industry,

 

That's quite a claim you've got there... Let's see if you can get a source for it.

I agree with you on PC having online distribution ahead of consoles, and on the efficiency of such distribution. Retail accounts for 1/3 of a games' price. Consoles will go there too.

About Chinese PC gaming increasing 75% yoy you'd better add that China has a very specific market made of their own games and with a very specific revenue model (free or low-cost entry price, and then numerous pay-for-download contents). It is not really as if Chinese gaming was an extension of the WW market, rather a parallel universe for the moment being.

If we get back to the point, it's not PC vs Consoles, but the future of consoles.

http://www.reuters.com/article/pressRelease/idUS131586+19-Aug-2008+BW20080819

Exclusive PCGA Study Shows PC Gaming a $10.7B Industry, Reveals
Explosive Online Growth

LEIPZIG, Germany--(Business Wire)--
The PC Gaming Alliance (PCGA) today unveiled the key findings from
its first "Horizons" Report, an exclusive research study of the PC
gaming industry worldwide. Speaking at the Games Convention
Developer's Conference in Leipzig, PCGA president Randy Stude
announced that PC gaming was a $10.7 billion industry during the year
of 2007, with retail sales accounting for just 30 percent of total
revenues. According to the report, growth was largely driven by online
revenues from Asia, the world's largest market, which is approaching
half of total worldwide sales.

Online PC gaming revenue led the way in 2007 with $4.8 billion,
nearly double the worldwide retail sales numbers for PC games. Digital
distribution sales approached $2 billion, while advertising revenues
from websites, portals, and in-game ads accounted for $800 million.
Both are expected to grow substantially as major developers and
publishers begin to adopt formal strategies to take advantage of new
online opportunities.

"Our analysis clearly shows incredible growth in online PC gaming,
proof that this industry is far stronger than anyone has reported,"
said Stude. "Today's consumers shop where they live - online."

I'll show you one better, this is from DFC:

"DFC estimates there are over 260 million PC gamers worldwide, and that should grow to close to 350 million by 2012."

And what's wrong with China?! Are you REALLY excluding China from the revenue because they don't pay for the same type of games?! LOL. Hey, let's exclude Japan too, and how about UK (they buy too much Wii Fit), or better yet, let's exclude North-America because they're the only ones that buy Xbox 360 that much.
If you were paying attention, you'd see that there are many "Chinese" games being developed in the Western world, like Star Wars: The Old republic, Battlefield Heroes, Quake Live, Battleforge and Need for Speed World Online.

 

Of 2007's 10.7 billion Total WW PC revenue

-------------------------------------------------------

Retail revenue : 30 %

Online PC gaming revenue  : 46 %

Digital distribution : 18 %

Advertising : 6 %

------------------------------------------------------

Wow, interesting.

 

About DFC's numbers. Such numbers have already been published in previous studies:

http://www.edge-online.com/news/study-claims-pc-market-largest

but a PC gamer varies from a secretary playing Zuma 15 minutes per week to a no-life spending his whole income in virtual gnomes. That's not even a segment to start with.

--------------------------------------------------------------------------

As for the chinese market i wouldn't take it into account yet. It's my personal opinion that they will in the end play on consoles instead of PCs. They never had the choice between PCs and consoles anyway.

Plus, they have a very peculiar relation with gaming. During the cultural revolution games were considered too individualistic and heuristic, immoral, incompatible with the communism. It's somehow tabou to play on a console, a system dedicated exclusively or almost to games.

They also produce their own games and might keep it that way the way japanese do. But unlike japanese theirs aren't exported, not yet anyway. So they don't influence the industry that much. Even their business model is unfit for the world. They are willing to pay huge amounts for online additional content and very little for the game itself.



God i hate fanboys, almost as much as they hate facts

 

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  +2Q  /  -2N  (to be read in french)

shio on 17 March 2009
Gh0st4lifE said:
shio said:
Gh0st4lifE said:
shio said:

Retail is a very small part of PC gaming - It was only 30% of PC gaming revenue in 2007, and it should be much smaller today. This is due to the shifting of revenue to digital.

Digital and Online Revenue is increasing much, much faster than the console industry. PC's Digital Distribution Services such as Steam and Gamersgate increase over 100% yearly, and China's Online Gaming Revenue was up over 75% in 2008.

Hell, even EA's CEO came out and said PC Gaming was growing faster than teh Console Industry,

 

That's quite a claim you've got there... Let's see if you can get a source for it.

I agree with you on PC having online distribution ahead of consoles, and on the efficiency of such distribution. Retail accounts for 1/3 of a games' price. Consoles will go there too.

About Chinese PC gaming increasing 75% yoy you'd better add that China has a very specific market made of their own games and with a very specific revenue model (free or low-cost entry price, and then numerous pay-for-download contents). It is not really as if Chinese gaming was an extension of the WW market, rather a parallel universe for the moment being.

If we get back to the point, it's not PC vs Consoles, but the future of consoles.

http://www.reuters.com/article/pressRelease/idUS131586+19-Aug-2008+BW20080819

Exclusive PCGA Study Shows PC Gaming a $10.7B Industry, Reveals
Explosive Online Growth

LEIPZIG, Germany--(Business Wire)--
The PC Gaming Alliance (PCGA) today unveiled the key findings from
its first "Horizons" Report, an exclusive research study of the PC
gaming industry worldwide. Speaking at the Games Convention
Developer's Conference in Leipzig, PCGA president Randy Stude
announced that PC gaming was a $10.7 billion industry during the year
of 2007, with retail sales accounting for just 30 percent of total
revenues. According to the report, growth was largely driven by online
revenues from Asia, the world's largest market, which is approaching
half of total worldwide sales.

Online PC gaming revenue led the way in 2007 with $4.8 billion,
nearly double the worldwide retail sales numbers for PC games. Digital
distribution sales approached $2 billion, while advertising revenues
from websites, portals, and in-game ads accounted for $800 million.
Both are expected to grow substantially as major developers and
publishers begin to adopt formal strategies to take advantage of new
online opportunities.

"Our analysis clearly shows incredible growth in online PC gaming,
proof that this industry is far stronger than anyone has reported,"
said Stude. "Today's consumers shop where they live - online."

I'll show you one better, this is from DFC:

"DFC estimates there are over 260 million PC gamers worldwide, and that should grow to close to 350 million by 2012."

And what's wrong with China?! Are you REALLY excluding China from the revenue because they don't pay for the same type of games?! LOL. Hey, let's exclude Japan too, and how about UK (they buy too much Wii Fit), or better yet, let's exclude North-America because they're the only ones that buy Xbox 360 that much.
If you were paying attention, you'd see that there are many "Chinese" games being developed in the Western world, like Star Wars: The Old republic, Battlefield Heroes, Quake Live, Battleforge and Need for Speed World Online.

 

Of 2007's 10.7 billion Total WW PC revenue

-------------------------------------------------------

Retail revenue : 30 %

Online PC gaming revenue  : 46 %

Digital distribution : 18 %

Advertising : 6 %

------------------------------------------------------

Wow, interesting.

 

About DFC's numbers. Such numbers have already been published in previous studies:

http://www.edge-online.com/news/study-claims-pc-market-largest

but a PC gamer varies from a secretary playing Zuma 15 minutes per week to a no-life spending his whole income in virtual gnomes. That's not even a segment to start with.

--------------------------------------------------------------------------

As for the chinese market i wouldn't take it into account yet. It's my personal opinion that they will in the end play on consoles instead of PCs. They never had the choice between PCs and consoles anyway.

Plus, they have a very peculiar relation with gaming. During the cultural revolution games were considered too individualistic and heuristic, immoral, incompatible with the communism. It's somehow tabou to play on a console, a system dedicated exclusively or almost to games.

They also produce their own games and might keep it that way the way japanese do. But unlike japanese theirs aren't exported, not yet anyway. So they don't influence the industry that much. Even their business model is unfit for the world. They are willing to pay huge amounts for online additional content and very little for the game itself.

That's an awkward thinking. Europe had the choice of choosing between PC and Consoles, and today PC is completely dominating Europe with the exception of 4/5 countries. Even have a look at Japan - it once was the mecha for consoles, but now the Japanese console industry is declining while PC's online gaming in Japan is actually increasing fairly it seems.

 



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1337 Gamer on 17 March 2009

just so everyone knows a DVR/Tivo device is basically a COMPUTER running linux. So i would agree with Shio that more and more people are incorporating PC's in their living room. TVs are starting to revolutionize too some are now being built with PC's inside of them.



Long Live SHIO!