Handhelds: The Next Console Generation

Feb. 26, 2008 7:40 AM ET, , , , 1 Comment
Bruce Everiss
82 Followers

If anything, handheld game consoles are more interesting than home consoles. They are undergoing rapid technical change, there are more companies involved and everything happens at a more rapid pace. Also the potential is far bigger, the Nintendo (OTCPK:NTDOY) DS has sold more than the Nintendo Wii and the Sony (SNE) PS3 and the Microsoft (MSFT) Xbox 360 all put together. Once again this is all supposition and conjecture.

Firstly, the Sony PSP. This has been a success as a media player but it makes no real money for Sony. It has failed as a game machine due to piracy and so is a broken business model. Sony desperately need to bring out an all new replacement with a touch screen and no UMD. It may well come from their phone division, there have long been rumours of a PSPhone.

Ultimately they will want a handheld that integrates with PS4 and with Sony Home. Of all the players Sony have the core competences to win. They are already in the phone business and the games business, so it is mainly a matter of integrating existing expertise.

The Nintendo DS is on the way to being a broken business model. They are losing customers far faster to the R4 than they are gaining them through selling more machines. The new DS Ultralite model due this year will not fix this problem. They need a new machine with a different philosophy towards content. They know this, they have the expertise and they have the development funds. Expect the replacement for the DS to be a very special machine indeed.

Microsoft is following a well thought out grand strategy. Some people think that Zune is just an excellent me-too MP3 player. It is far more. Expect successive generations to evolve phone and gaming features. This will

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82 Followers
Bruce has joined a start-up computer games company twice in his career — first Imagine, then Codemasters — in the senior marketing role and helped each to become the best-selling publisher in the UK in its first year of trading. He also set up the All Formats Computer Fairs, which he ran for nearly 20 years and over 1,000 events around the UK and through many very prosperous years until their function was largely replaced by the internet. You can read about him in the early days (https://zxgoldenyears.net/everiss.html), and there’s also something about his role in the pre-history of the games industry in the Wikipedia entry on Liverpool Software Gazette (https://en.wikipedia.org/wiki/Liverpool_Software_Gazette). You can also see his LinkedIn profile (https://www.linkedin.com/in/bruceeveriss), and he is available for consulting (https://www.bruceongames.com/services/).

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