SineSwiper wrote:Yeah, I tend to agree with Seeker, but it brings up a point: How the hell do you manage to not make money in the gaming industry, especially with a really popular console like the 360? And why create consoles that are more expensive to make than is sold? I thought that piece of stupidity in economics went out of style with the Sega Saturn.
No, it's more popular than ever. It's the whole issue with reliance on escalating technology like gaming systems. It gets more and more expensive to make these systems and games which increases the break even point even more so. Considering prices have barely moved since the NES days (I used to pay for NES games then what I pay for Wii games now) but development costs have increased ridiculously, it's becoming a much more risky proposition.
It's the same with the systems. You have to be able to meet the horsepower demand to keep the games sexy and to attract those who aren't really gamers since they comprise over 80% of the market (we'll get to Nintendo's strategy in a minute). That's exactly the mentality behind Sega with the Genesis and Saturn consoles and Nintendo up to, i believe, the N64, which was making money from the very first unit on.
Nintendo took a look at this and said "this ain't something we could possibly win on against Sony and Microshaft, so let's change the market". It also really had nothing to do with their software strategy, which is their real competitive advantage. So they took a different direction. The real question is: is the market large and mature enough to move away from style over substance to less stylish games?
It's always been less style more substance on the handhelds, that's why the GBA demolished the Game Gear and Lynx even though it was just a calculator, but can the consoles be like that? I think the market's big and mature enough there's a good chance, but I ain't so sure it's gonna necessarily work for Nintendo. They may have jumped the gun one generation too early but so far, the results are showing that they've had good foresight. We'll see if it lasts the traditional 5-year life cycle. And will them releasing a system only slightly more powerful than the 360 in the next generation gonna work? Will Sony or Microsoft be able to actually come up with a cool-ass interface in the next gen that takes away from Nintendo's thunder while offering a system 5 times more powerful for $100 more?
You actually saw this similar trend in the movie industry during the 90's. T2 comes out and everyone's like "HOLY FUCK, look what we can do with CG!". Add to that the natural big increase in production value and all of a sudden movies were ALL about the style over substance. But the movie industry is far older and more mature of an industry and we saw a quick change after '94 with the release of Pulp Fiction. After that we saw "indie" start attracting big names (through 2000) to the point where it's now become the mainstream. Even though they're still coming, particularly this year (it really has been the return of the blockbusters this year), there's much less reliance on the "blockbuster" now.
I'm just not so sure the games industry is that mature to have the reliance on graphics switch after two generations (I say it started with the PSX/Saturn/N64 and the 3D).