user1010101

Where Is the Gaming Industry Headed?

Eskin,

I agre with you completely. The move to an online distribution platform is still years away for a variety of reasons:

1) carrier networks are already over loaded with data demand coming from smart phones - there is no way they are capable of handling HD game streaming
2) consumer preferences have not changed in such a way that they want to buy/rent a game online. Many games have reply value or, at the very least, resale value.
3) game publishers are not going to turn down a free opportunity to distribute their content but none of them have commited to supporting platforms (like onlive) financially

Online gaming has been around for a long time - mmorpg's have been very popular for years. The fact that we have just seen 1 generation of online gaming (xbox and ps3) shows you how slow the industry is moving.


On Oct 20 10:13 PM Eskin wrote:

> Wow! VERY Cool article. I wonder how accurate that Apple daily revenue
> potential is because seems like a major cash cow right now... esPECIALLY
> as Apple gets deeper and deeper into the remote gaming market.<br/>
>
> Also, as a gamer during my entire life, I would find it VERY surprising
> if the OnLive idea actually succeeded. I'm an avid believer that
> the future generation of gaming is online with other players (much
> related to social media today, and is already here with XBox Live),
> but serious gamers really don't care about having, as you mentioned,
> "real estate" in their living room. If the system is worth it, like
> Ps3 or whatever comes out next, the graphics and speed will justify
> having the tower in their living room. Who cares that it's there?
> A majority of controllers nowadays are wireless anyway. The extent
> of problems (slow, huge controller, always need to be online) with
> an always on-line system will definitely not be worth it compared
> to the benefits (just not having the system there).
>
> Check out my blog at www.youngandinvested.com

Is There a Need for Game Publishers Any More?

I have read many poeple make these bearish comments on the video game industry and think you guys have it wrong. Your lost in games from the new mellinium rather than looking at the blockbusters that have come out in the last few years. Games such as rockband, guitar hero, all the wii games are clear examples of how consumers demands for games have changed. People and especially kids no longer want to sit in front of there TV with a "controller" and hit a couple of buttons - there is more to games. The whole iPod game thing is simply an expansion - no one makes the decision to by an iPod for its gaming flare over a wii/PS3/Xbox/DS etc.

There is definately a trend towards online distribution but this is way into the future. Companies are simply realizing that a subscription based revenue model ensures profitability and prevents pirating - but this has been going on in the software space for a long time now (they are just late to the game).

The fact remains, it will be a long time before any of these bearish thesis come out. By that time, the next big blockbuster will be out and the market will pick up all over again.