ok, so the industry may not need 'saving' per say but its certainly not in a good position. what good the big 3 do to improve the numbers? below are the various ways manufacturers use extend the life of their hardware. please tell me if you think ive missed anyout

 new compelling software

 bundles

hardware revisions

 new colours

marketing campaigns

new features

 price cuts

 usually these things are used in combinations rather than in isloation. of these software is the prefered method for large boosts since in brings in additional revenue from 2 sources. price cuts are usually the least refered since they represent a reduction in profit margins

 Microsoft

microsoft's extention stratergy laucnhed in the second half of last year has worked wonderfully. it went from bei beaen by the PS3 to outselling sony's console on a wekly basis and being the only curent gen console to be up YoY in total so far in 2009. their strategry was mainly driven by a pricecut to tkae it under the magic $199 line. supporting this were 2 AAA sequels for the hardcore, GoW2 and Fable II. there was also a new focus on casuals. Lips and Your in the Movies were new, periferal based IPs that were heavily marketed at the causal gamer. the Netflix featurewas also part of this. looking to the future microsfot is set to continue its huge marketing campaign, usually showing 3rd party games. but as the affect of the price cut wears off what else can microsoft do?with a price cut basically out of the question  microsoft will look to other methods. they will probably continue to make frequent use of bundling, most recently the RE5 bunde and game of the year bundle to ass value to thier console. The upcoming Halo ODST may move some consoles but as an add on its effect will be limited. however the price cut has meant that the 360 is once again in the position to be software driven. in the west  microsoft will continuehunting the casual audiecne with new games and in japan will attract the core audience with exclusives such as NNNII and Magna Carta 2. thes esoftware is liekly to be accompnied with hevay makreting and bundling

Sony

i know its stating the obvious but PS3 needs a price cut. its reached saturation at its current price point.  with relatively few third party exclusives (in the west at least) the console is relying on it simpressive first party line up. but this compleeling software, even bundled with proably not have that much of an effect without a price cut. new IPs such as infamous and heavy rain could potentially become million sellers are liekly to be marketed hard but they are not system sellers. after the extremely hyped Killzone 2 failed to give a large hardwae boost many are wondering what effect R&C an Uncharted 2 will have.  Gran Turismo and God of War III do have the abillity to push hardwrae cnsdierable but whether either of them hits this year s another matter. with sony ruling out a hardware revision a pricecut seems to be Sony's best hope of revitilising the PS3

Part2 coming soon

You want to save the industry then take out the handhelds. For 360 they need to get some games, for PS3 they need to release a slim @ $299.99

What does this have to do with saving the industry?

You tricked me!

@ liquidninja

by saving the indsutry i mean so that its an industry that is exeriencing growth rather than decline which its doing at the moment

You talked nothing of satisfying customers or changing business models.

All you said what has worked in the past and what they are doing now.

maybe they dont need to change business models. what im refering to is not indie devs going bust (which doesnt mean th end of the industry) but that in terms of revenue the industry is shrinking. wii and PS3 are both in their 3rd year when they should be experiencing their best years but instead both are down YoY overall in 2009

Well, I imagine doing the same thing but faster is not going to help the industry.

Change is a very necessary part of running a business. Companies who fail at change go out of business. That's the reality of this industry. No real change.

I agree with Liquidninja. Too little customer-oriented thinking in the OP.

Business should be about making things people want, not trying to figure out how to make people want the things you make.

@ killergran

business should be about both. im speaking in practical terms about what each manufacturer can do. how do you propose the Big 3 prevent this ndustry declline?

@Woopah
You mean, what should the big 2 do about their lackluster sales? Because last time I looked Nintendo was carrying almost the entire industry growth on their own shoulders. A growing industry, it was at least last time I looked.

It would do both Sony and Microsoft well to take a look at how the average person views their console, and why. If they took some time to think about why the values they have instilled their consoles with are not as successful this generation as it was the last, and why the Wii was so successful they might actually be able to find some neat solutions.

Why do people buy the consoles, and how do they use them? What would our console need to be appealing outside of our current demographic?

These are all questions that I believe would do much to further the understanding of the consumer, and in the end produce a better product.



And I belive that while making the consumer want your product might sometimes be successful marketing, making a product that the consumer wants is always good marketing.