Contents |
Console games are more commonly referred to as ‘videogames’. These games are played on a device called a videogame console and are designed especially for electronic game play. Console machines need to be connected to a television set much the same as a video player, as image and sound is delivered to the gamer via the television. Due to this these machines are commonly found in the living rooms connected to the entertainment system. (Rouse, R. 2001). The player interacts with the game with a specialized controller, a hand held device with buttons and triggers used for actions and joysticks or game pads for movement. Due to the fact that these controllers are specifically designed for game play, their layout and functionality create a vivid playing experience. (Rouse, R. 2001) The plug and play function that is part of the console game design is another draw card for many gamers. This means once the game is purchased there is no need for installation, this opens the gaming market to people who may not be competent with computer installation procedures, and makes the console machine easier to use for beginner gamers or children. 1972 marked the beginning of the console market with the introduction of the Magnavox Odyssey. Although the potential of the market did not become recognized until 1985 with the release of the Nintendo entertainment system (NES), selling 6 million units worldwide. (Forster, Winnie. 2005. p 45) Nowadays “videogames are the fastest growing segment of the entertainment business�?. (g4tv, 7 September, 2005)
The videogame console is host to a large range of varied game play including genres such as racing, simulators, adventure, fighting and action to name a few. As apposed to a computer games, videogames can only be played only on specific console systems, and this has create a competitive market where industry leaders want the best games to only become available on their console systems.
One of the most common feature found on most videogame consoles, including early systems such as the Nintendo entertainment system (NES), is the ability for multiplayer game play. The earlier systems allowed for a second controller for two players simultaneously, this has now been upgraded in the modern systems to four players at one time. The television screen is divided up into quarters an each player is given a section to perform his/her actions. This mode of play degrades the quality of sound and graphics so the machine does not lag because of the amount of actions needing to be processed. LAN (Local Area Network) is another form of multiplayer gaming which many of the modern consoles support. Online gaming for console systems is a recent feature, which has only been introduced with the recent generation of consoles. (Xbox, Playstation 2) This feature is similar to online computer gaming but has been modeled differently to comply within the realm of the console market. (Sarrel, MD. 2003)
There are many features which are now incorporated into modern day videogame consoles which make them a much more valuable accessory to any household. The current genration of game consoles (Xbox, Playstation 2) come complete with CD and DVD playback, creating much more versatile entertainment machines. The Xbox also includes a hard drive to store game progress and music. This can then be accessed by some games and played back as the soundtrack of the videogame. (Xbox, September 7, 2005)
The market is currently dominated by media giants Sony (PlayStation) and Microsoft (XBox), with Sony being the undisputed market leader. Both companies are late entrants in the videogame market, yet they still managed to corner the industry in less than a decade. PlayStation made its debut in 1994 and managed to dominate the market in four short years, taking the industry by surprise. Sony was able to achieve this by developing better gaming technology and delivering superior graphics and sound quality with its console. By the time the PlayStation 2 was introduced in 2000, Sony had already established itself firmly in the market (Luh, 2003).
Microsoft launched the Xbox in 2001. It was touted as a Trojan horse, as part of a grand ambition by Microsoft to sneak a computer into the living room disguised as a toy. Microsoft’s strong financial background and existing expertise in the computer industry gives it an edge in developing a console that can compete with the PlayStation, on both the technological and marketing front (Accountancy, 2001).
The other significant competitor is Nintendo. It was the incumbent market leader before Sony entered the market. It made a series of bad business decisions over the past two console generations and ultimately lost huge market share to Sony. Nintendo positions itself on delivering a new gaming dynamic instead of competing on developing superior gaming technology like Sony and Microsoft (Nicoletti, 2005). In the current videogame market, it is conceding the high-end to Sony and Microsoft and focus instead on making less expensive games and devices (Lewis, 2005).
Competition in the $28 billion worldwide videogame industry looks set to get more intense with the launch of the next-generation gaming consoles (Jones, 2005).
In May 2005, Microsoft unveiled its next-generation console, the Xbox 360, in a much-hyped marketing campaign on MTV. Sony followed just days later in announcing details of its PlayStation 3 (PS3) at the annual Electronic Entertainment Expo (E3) videogames trade show in Los Angles (Lester, 2005)
As part of the strategy by both technology giants to dominate the living room, the new consoles are no longer just gaming machines; they are designed to be high-definition centerpieces for home-entertainment systems. These consoles have state-of-the-art hardware technology and are slated to deliver cinematic quality graphics (Lewis, 2005).
Digital convergence is the key feature of the new consoles. They offer features such as wireless remote, wireless controllers and built-in DVD player. Their online and networking capabilities allows for communication with other digital devices such as cameras and music players. They are designed for high-definition displays and can also function as a set-top box for Internet Protocol Television (IPTV) (Cross, 2005).
Nintendo’s next-generation console, aptly named Revolution, is expected to be significantly more powerful than its predecessor the GameCube. However, in terms of technology, graphic capabilities and hardware processing power, Revolution is expected to be inferior in comparison to its competitor’s new consoles the PlayStation 3 and the Xbox 360. The Revolution received little anticipation compared to the top tier competitors (Nicoletti, 2005), and this was not helped by the fact that Nintendo was being notably mysterious in its new console announcement (Sheffield, 2005).
As the next-generation consoles are evolving into digital entertainment hubs, it will have implications for consumers, game manufacturers, game developers and the ICT industry at large.
With their next-generation consoles, Sony and Microsoft plan to expand their target audience to beyond the traditional gamers. Convergence is the key to expanding the market. Besides the core gaming function, these new consoles are becoming more feature-packed and powerful to appeal to a wider audience (Miller, 2005).
The consoles’ high-end graphic output and advance networking capabilities implicate the consumers and the ICT industry in another manner. In order to enjoy the full potential of these new consoles, consumers will need other peripheral support such as broadband internet connection and high-definition television (HDTV). The success of these new consoles could boost the take-up rate of broadband and HDTV, or alternatively, be hindered by their popularity (Hsu, 2005).
The fight for market share has implications for console manufacturers beyond that of the gaming industry. The success of the PS3 is vital not only to the future of Sony’s videogame business but also to the company as a whole. Videogames are a major source of profit for Sony, accounting for about a third of its operating income. Sony is also counting on the PS3 to jumpstart key technologies, such as Blu-ray DVD and a new chip technology called “Cell�?. The success of PS3 will have an impact on its quest to be the next-generation DVD format leader (Dvorak and Wingfield, 2005).
The arrival of PS3 and Xbox 360 will also affect the game developers. Small developers may not be able to handle the additional cost and complexity of making games for these high-tech consoles. As a result, they may be forced to consolidate or be acquired in order to survive in this new gaming environment (Lewis, 2005). In comparison to Sony and Microsoft, Nintendo’s Revolution has modest hardware and graphic capabilities. This could provide a niche market for small developers that cannot afford the huge budget required for PS3 and Xbox 360 development (Sheffield, 2005).
Yarron Frauenfelder 12:08, 8 Sep 2005 (EST)
Choo KeeFong 16:42, 8 Sep 2005 (EST)
Accountancy (2001) “Cover Feature – Games Consoles – Clash of the Titans�?. London. July 2001, Vol.128, Iss.1300, p.30.
Cross, J.(2005). 'Game Consoles Bulk up. The next generation of gaming consoles will be the brawniest yet. Makers intend to use that power for much more than faster and nastier first-person shooters', PC Magazine (New York), Vol.24, Iss.13, p.91
Dvorak, P. and Wingfield, N. (2005) 'Sony Offers Peak at PlayStation 3 as Videogame Battle Heats Up', The Wall Street Journal (Eastern Edition), May 17, p.3.
e.week.com.(2005). "Video Game Controller." retrived September 6, 2005 from http://www.eweek.com/encyclopedia_term/0,2542,t=video+game+controller&i=53849,00.asp
Electronic Entertainment Expo, retrieved September 8, 2005, from http://www.e3expo.com/
Forster, Winnie. (2005). “the encyclopedia of game machines – Consoles, handhelds & home computers 1972 – 2005�?. New York: Game plan. ISBN 3-00-0153594
G4.com. (2004). “G4 GAINS DISTRIBUTION ON TIME WARNER CABLE�? retrieved September 7, 2005 from http://www.g4tv.com/html/about/press/showrelease.asp?pressrelease_key=20
Hsu, D.(2005). 'A Full Revolution. Microsoft wants to conquer the gaming world via an online and high-definition onslaught. Yet only half the country has broadband and even fewer own HDTVs...Is America ready for the Xbox 360?', Electronic Gaming Monthly July, Iss.193, p.62
Jones, K. (2005) 'The Console Wars: Sony, Microsoft, and Nintendo ready big gaming advances', PC Magazine, Vol.24, Iss.12, pp.21
Lester, R. (2005) 'Game Consoles - Real fight for virtual victory', Marketing Week, May 26, p.26.
Lewis, P. (2005) 'Not just playing around'. Fortune (New York), Vol. 151, Iss.12, p. 126-127.
Luh, S.S. 2003. 'Picking a Fight: The Rise of Sony’s Video-Game Business' in “Business the Sony way: secrets of the world's most innovative electronics giant�? p.107 – 135. United Kingdom. Oxford.
Microsoft Corporation (2005), retrieved September 4, 2005, from http://www.microsoft.com/xbox/
Miller, M.J. (2005). 'Pulling It All Together - The Sony PS3 reportedly performs at up to 2 teraflops - at least a couple of times faster than the Microsoft Xbox 360. Unquestionably, the PS3 is more ambitious', PC Magazine (New York) Vol.24, Iss.12, p.7
Nicoletti, A (2005). 'Where to go for Nintendo?' Australian GamePro Iss.10, June-July, p.21.
Rouse, R. (2001). “Gaming & Graphics: the console & PC: Separated at birth?�? SIGGRAPH Computer Graphics. 35(2): 5-9
Sarrel, MD. (2003). Personal Technology. PC Magazine 22(17): 144
Sheffield, B. (2005) 'PS3, Xbox 360, Revolution Announced', Game Developer (San Francisco), Vol.12, Iss.6, p.4
Sony Computer Entertainment Inc. (2005), retrieved September 5, 2005, from http://www.playstation.com/
Wikipedia (2005) “High-definition television�? retrieved September 8, 2005, from http://en.wikipedia.org/wiki/Hdtv
Wikipedia (2005) “IPTV�? retrieved September 7, 2005, from http://en.wikipedia.org/wiki/Iptv
Wikipedia (2005) “Computer & video games by genre,�? retrieved September 6, 2005, from http://en.wikipedia.org/wiki/Computer_and_video_games_by_genre
Xbox (2005) “the Xbox experience�? retrived September 7, 2005 from http://www.xbox.com/assets/en-us/explore/hi/launch_hi.htm
