Games Analysts Weighs In On Console War 194
Gamaustra's latest in its 'Analyze This' series asks the question point blank: Which Console Will 'Win' 2007? The regular series puts weighty questions to business analysts who specialize in the games industry, to get a gestalt opinion on what's really going on. The well-respected Michael Pachter, of Wedbush Morgan Securities, had some of the most interesting comments to review. He says that Nintendo will 'appear' to win in 2007 because of its low price and innovative control scheme, but that Sony will be the winner in the long run. From the article: "My best guess is that Sony emerges as the winner of the movie format war in late 2008, and games start looking noticeably better in 2009. That's when Sony starts looking like the winner of the next generation battle. All of this is pretty far out, and a lot can happen with pricing to change things. For example, if Sony gets down the cost curve for Blu-ray and Cell processors, [the PS3] may be below $300 shortly thereafter. It's hard to say that this will happen before 2009, but it could. That would change everything."
New game consoles, OK, but what about new games (Score:3, Interesting)
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Maybe there's a reason... (Score:2)
Re:Maybe there's a reason... (Score:5, Funny)
Re:Maybe there's a reason... (Score:5, Insightful)
How will they hang on to developers (Score:3, Insightful)
On top of that, with the money Sony is losing per console right now, they will have to sell a lot of games per console sold in order to break even. PS2 might be keeping SCE afloat, but I don't really see PS3 keeping a PS4 afloat at all considering how drastically the course of things would need to change.
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Most people buy 10x as many movies as they buy games (since most people don't buy games...)
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They don't need to "Hang On" to Developers (Score:3, Insightful)
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Sony is fine (Score:5, Informative)
That's not in any way true [yahoo.com]. Multiple Apple's sales by 3, and their profit by 4, and you got Sony. Sony has $32B in short term assets. Sony is quite healthy, financially. I don't know where you got your information.
You're a moron (Score:2)
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As far as devs/publishers are concerned, it's *who* goes multiplatform that's important. Exclusive games by no-names, or even good but small companies, aren't nearly as big a deal as if, sa
Sooo... (Score:2, Insightful)
Source: http://en.wikipedia.org/wiki/PlayStation_2#Price_ h istory [wikipedia.org]
Re:Sooo... (Score:5, Interesting)
What's the End Game? (Score:4, Insightful)
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If they want to talk about money though it's obvious who's going to win. The Nintendo DS is already the reigning king
Winner = market share leader? (Score:2)
I think generally the "winner" is essentially the market share leader (which obviously is tied to consoles sold).
Now granted, you could argue that it should probably be tied to profits, since this is a business we are talking about. However, that's a bit difficult seeing how there's much more to MS and Sony than just their game units (MGS is notorious for losing the company money), so they can a
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Perhaps the real question is whether or not there will be a loser in this round. Whereas the previous generation had a real loser in the Dreamcast, will this generation see one of the "Big Three" falling down substantially?
Some people conveniently forget the Dreamcast and call the Gamecube the loser of the previous generation, but as you mentioned, this is a business we're talking about, and
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I think asking "Is there a loser?" is an interesting question. You could
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No one doubts Nintendo would make money and gobs of it, even if the Wii only had half the market share it had last time. Everyone knows Nintendo is very good at making money.
No one doubts Microsoft will keep plugging along. Even if they don't make money they've garnered a place in the industry and aren't likely to give it up. Even should they get thoroughly trumped later, they'll come back.
Everyone doubts Sony, and not because o
The winner is the console I have... (Score:5, Insightful)
Interesting, as WSJ reports Sony losing format war (Score:4, Informative)
But, live in a dream world if you must.
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Sprint not Marathon (Score:3, Insightful)
I don't know where the point is, and I don't know when any of the systems will hit it, but it is foolish to assume that the PS3 will have an easy time catching up in 2008/2009 simply because it has better graphics.
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In a Marathon, there's generally a nice pack of people leading the way. Almost like the Tour de France, this pack has benefits both psychological and physiological. They're keeping each other to pace, slicing the wind for each other etc.
It can be very hard in a Marathon to break from the pack because you lose the support it provides. It can be done, but it's hard. However, a good Marathon runner will onl
Okay, What? (Score:3, Insightful)
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Isn't this what we said about the 360 adopters when it first came out? Replace things like Gran Turismo with Halo and you've got the mirrored story.
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I'm a Sony guy (Score:2, Insightful)
I know, they've been involved in all kinds of terrible anti-customer sorts of things lately. The fact is, I've never been unhappy with a Sony product. I think that their product quality is excellent. My portable CD player would be stolen or misplaced before breaking down, while I've lost two competing brands to a mis-aligned laser. They consistently had better battery life in their portable products than their competitors. PS/2 is an amazing platform; it's 4 years old now, and there's still new titl
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I'm glad that you've gotten good use from your Sony products, but why would that stop you from giving competing products a fair shake? Sure, the PSP has some good games, but it's hard to build a case that the PSP has a better library than the DS. I mean, Hotel Dusk _alone_...
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They took it home afterwards, plugged everything in and were still able to play SSB:M no problem.
Then they took a baseball bat to the thing, that did it in, but only barely. The beast still
PS2 ... the best ever? (Score:2)
I have to say that the PS2 can probably be considered one of the best video game platforms of all time. It would definately rank up there with the NES or SNES in my book. Reason? It's not so much the PS2 itself, but the amazing library of games it had. It pretty much had all of the major franchi
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That said, it's interesting to note that for every dodgy new piece of prop
Nintendo Wii to age faster? (Score:2)
The near constant thing I hear people say about the Wii is the game play. So if the key compliment to the Wii is not the graphics then I'm not seeing how the Wii will age faster...because of its lack of HD graphics. Perhaps most notably is that people who aren't gamers are also talking about the game play.
The game play is what will keep the Wii from aging fast.
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the "lack of HD" is really lack of 720 and 1080 resolutions, though supposedly the hardware could put out 720i but nintendo doesn't allow it in firmware because game performance would be unacceptable at those resolutions
Re:Nintendo Wii is EDTV, not HDTV... (Score:2)
The Wii does 480p (and 16:9) which by Definition is EDTV. 720, and 1080 are HD. The PS2 and X-Box has a few games in 720p, and even 1080i. Since the Wii more powerful than the X-Box 1, there isn't a technical reason why they can't support this.
The Wii (like the Gamecube) won't support
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assumming that players don't tire of the Wii controller.
I have to ask how the casual gamer reacts when he is first exposed to Oblivion or Gears of War.
There seems to be an opportunity here for Sony and Microsoft to strike gold with titles that have game play, graphics and sound that the Wii simply can't deliver.
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That experience varies, some people like the graphics while others dislike the violence. I can tell you that in my experience, all the non-gamers and casual gamers who have seen it reacted surprisingly well to the Wii's control scheme and had no complaints. Wii Sports was really the first killer app for people who wouldn't consider themselves video gamers, with Rayman:RR and Wario Ware being excellent follow-ups t
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Lets assume HD TV adoption really takes off in the next year or two, to the extent that by, say, 2010, SD sets are a real minority (-30 percent of sets).
Lets also assume, and it's probably not too far from the truth, that MS has a bottomless pit of money, and are willing to do prety much anything to bury Sony.
Now, lets stop assuming things and look at stuff we know. The X-box had a four year life cycle (2001 - 2005). The PS3 is being sold at a loss,
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If you become one, send me a link. I'd read your drivel over their anyday.
Why? Because you go out on a limb. Everything the guys in the articles said was about as vague and uncommital as it comes. One guy even went so far as to note everything could change on him and ruin his predictions! While that was honest of him, the least he could have done was be somewhat more specific with his predictions.
The scenario you've detailed is highly interesting. The potential graphical sup
Wait and see approach (Score:4, Informative)
In contrast, here's a typical fanboy view of all the consoles:
Wii
Pro: Wii-mote rules! It's all about the innovation and gameplay. Sony and MS have none of that, so they're doomed! Who cares about HD? Look at the holiday sales! We are DEFINATELY going to win.
Con: The Wii was doomed from the start when they released the hardware specs. HD is the wave of the future. The "waggle" is just a gimmick, no one is going to want a "GameCube 1.5" months from now. Nintendo is DOOMED.
Xbox 360
Pro: First to 10 million baby! Also, see how Sony is losing exclusives left and right. Xbox Live all the way. Finally, Halo 3 babeeee! We are DEFINATELY going to win.
Con: M$ should go back to making Windows. 360 is failing in Japan, and red-lights are everywhere! M$ is DOOOMED.
Playstation 3
Pro: Blu-ray all the way baby! PS3 is the real next-gen and HD. Also, the PS2 is still selling like hot-cakes. Finally, you can't deny the power of MGS4 and FFXIII. We are DEFINATELY going to win.
Con: Batteries exploding, root kits, and constant PR fiascos. Also, PS3s sitting on shelves everywhere? $ony is DOOMED!
Certainly, there are lots of both truth and falseness to the statements above, which is why fanboys keep making them. However, it's still way too early to tell anything, especially when consoles generally last for years and perceptions change quickly. Remember how doomed many people thought Nintendo was when they first announced the "Wii" name? Or how silly the DS seemed, compared to the sexiness of the PSP? Or about how solid the PlayStation brand was a year and half ago?
Yeah, go figure.
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Argh, "definately" is my Achilles' heel of spelling. I didn't mean to spell it incorrectly, although in that context, I guess it does make sense. ;)
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What the heck is that supposed to mean, exactly? Fanboys keep making the statements above, because they are both true and false? Because they contain both truth and not-truth? Becase they are simultaneously both correct and incorrect?
If you'd said something like "Certainly each of these viewpoints has a grain of truth buried somewhere in it, which is what fanboys cling to" I'd have been al
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I'm not a market analyst, and I'm also not a fanboy (though I've been accused of being one for each system in turn). Perhaps my own predictions have simply been lucky of late, but I did believe that the DS and the Wii would succeed before it was popular to think so, though the systems have out performed my
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There is definately precedent with Nintendo doing this. All you need to do is look at the
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Can't they all win (Score:2)
The Wii is there, sales are strong because it's fun, they're making a profit and people are happy. This is win for Nintendo. BTW I bought a Wii and Zelda and it's my first Nintendo product.
Xbox360 has the critical mass to encourage continued third party development, lots of games == happy people. Again this is a win.
PS3 most powerful, lots of people like power and they'll pay for it. I think the PS3 will remain a usable console well into the next
2008? 2009? (Score:4, Insightful)
I'm really surprised the "experts" have missed the obvious point here...
I think MS released the XBox360 about a year earlier than Sony anticipated. I believe Microsoft did this to force Sony to release a console 9-12 months before they were ready. Sony essentially abandoned the very profitable PS2 way too soon to push the PS3 and compete with the Xbox360. In my opinion, Sony managed in the space of 6 months to throw away a commanding lead in videogames. Now they're in 3rd place for the "new" generation. And it's going to be a tough hole to dig out of.
You can argue that the new PS3 has wonderful technology, you can talk about the wonderful WiFi, BluRay, and all of that is true. But people are going into stores and looking at $250 for a Wii (which is still hard to get), $300 for an Xbox360 (even if that price is deceptive), and then $500/600 for the PS3. I think it's a tough sale.
And again, listening to these experts talk about how the PS3 will come from behind in 2-3 years to take over the lead... it's never been done in consoles, I doubt it will happen now.
I'm really surprised at Sony. They know as well as anyone how easily the lead in videogames can be lost. And despite all that they threw that lead away.
If I was Sony, I'd cut prices by $100-150 across the board, get the cheaper unit into stores, get some games out there and advertise the heck out of the console itself. I think they're in trouble at the moment, and the game is MS's to lose right now.
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Losers.
If you think that 2009 will be the year of the PS3, then you're delusional, the Xbox 720 and the Wiiii will be right around the corner by then.
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The PS2 will likely have a 10+ year run, the PS1 had 11 years, the SNES had 13 years...
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If that's the prices in the USA, no wonder people are buying the Xbox 360 instead of the PS3.
No wonder people are buying the Xbox 360 instead of the PS3 in the USA at these kinds of price differences if the prices you wrote are correct.
Here in Canada, the Wii is 280$, the Xbox 360 (Core) is 400$, the Xbox 360 (20GB) is 500$, the PS
I agree. (Score:2)
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Now you may be right that the console war will be over by then because one
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The only reason that the PS3 is a tough sale at this point is lack of games worth playing. It has one game that doesn't suck.
I would say that the PS3's biggest problems are that it is really expensive, has too few games and offers little benefit for the majority of people who don't have HDTVs; in 2008/2009 it will be a far more modera
printer friendly version (Score:2)
what about psp/ps3 and DS/Wii combo potential? (Score:2, Interesting)
Download services and hand-held integration hopefully will play a big part in this generation. A wireless Four Swords
would be great, and SOCOM3 has some unlockables when you plug
your PSP into a PS2 USB port. I also remember hearing that PS3 has a download service already in Japan.
If Sony and Nintendo can leverage their handheld sales
Who cares? (Score:3, Funny)
Who cares who wins in 2007? I sure dont. If you like Wii, you'll go Wii. if you like PS3, guess what, you'll go PS3. Xbox? Do a little dance and make a 360!
The only true winner is the consumer, because they have a choice, IMHO. Analyze that.
BS mainly. (Score:2, Interesting)
Now there is the third, "respected" analyst. Example argument from TFA:
"If I'm right, Sony will end up winning the high-definition format war, and once there are millions of Blu-ray enabled PS3s floating around, I think we will see sharper graphics on PS3 games compared to Xbox 360 games."
Where does he base this? Becau
Sooo Ummm think about this... (Score:2, Interesting)
The Majority of Certified Analysts in 2006 (Score:2)
That's right "MAJORITY". Which actually means you'd be better off doing the opposite of what they suggested.
I just read "A Random Walk Down Wall Street" --- highly recommended if anyone is interested in the
mathematical provability of analysts' incompetance. Any analyst who believes he is operating in
an enviornment with a limited enough set of variables to render a prediction, is inherently mathematically
inco
Re:Well or why the price must drop (Score:2, Interesting)
This is a true statement. Notice the street price in Japan has already been slashed, even before the EU launches, as they try to deal with lower console sales there. Prices haven't dropped in the US market, but the product isn't moving either, according to a number of online and print articles in various business sources - WSJ, CNN Business, CNBC, etc.
With the massive console losses already in place, i
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The Wii is indeed killing them, and if there was sufficient stock, it would probably be killing the 360 as well. But considering the high-end technology used in the PS3, and the
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As for mass media forecasts, they will align with which ever manufacturer pays for the most adv
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Sales in PC games has actually risen, there is just so much available that sales for any individual game has fallen. Let alone a full range of free games available for PC as w
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Multiplayer on one system (thus more directly social)
Larger screen (and increasingly, equal resolution to PC)
Easy setup/compatibility (plug it in, put the disc in, it works)
Simple controls
Easy online play (at least for the Xbox/360.. PS3 is still a question mark)
Consoles are not aimed at "people who can not afford full fledged open hardware", they are aimed at people who want an easy, fun gaming experience. No matter what your pers
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But have we forgotten there actually still exists a market for a certain demographic that has come to be known as the "hardcore gamer"? Yes, I've heard lots of arguments that Wii players are "real" gamers and are "dedi
$300 PS3 means they have to sell twice as many (Score:2)
Yes, but would it sell twice as many? The premium PS3 SKU is $600 USD. To break even on revenue, Sony would have to sell twice as many. I really don't see that happening. Certainly, you'd get a lot more people buying the systems, but a significant number of people still sitting on their hands, waiting for actual games to come out, or an actual winner for the HD-DVD/Blu-ray battle to be decided.
Plus, it
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Now, it may be that they aren't prepared to handle increased PS3 sales. There may be unsold PS3s, but they are preparing for another launch in March. If they can have a very good supply for the EU, it might encourage the other markets as well. If/when supply far exceeds demand we may se
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According to dvd empire [dvdempire.com] and Eproducwars [eproductwars.com] blu-ray is currently outselling hd-dvd, an effect widely attributed to Ps3 owners buying HD movies. The average blu-ray movie costs less than hd-dvd in amazon as well.
Here's Debbie does dallas in blu-ray, porn in 1080p and multiple angles. [highdefdigest.com]
In a objective comparison, both formats are about the same(excluding player costs which will eventually be similar), except for future catalog:
Blu-ray [highdefdigest.com]
HD-DVD [highdefdigest.com]
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Eproduct wars has far more statistics and many of the stats are not important for sales; most of the sales stats are pretty split and will change week to week.
The real problem with the parents post is he does the google tre
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1) Too expensive
2) Don't need/want a Blu-Ray player
3) No games
4) Too expensive
Which is why, if Sony can get the price down under $300 in a couple years, everything could change. Two of your reasons for not wanting a PS3 would be instantly invalidated, and depending on how many PS3 games and movies are released in the meantime, the other two might be as well.
I don't expect Sony to give up on the PS3 before 2009, either; they're some stubborn bastards. How long did it
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PS3 (Score:3, Informative)
If you look at at the cities/regional/language bars below, PS3 is consistently in top for all cities, regions and languages, with Wii and XBOX 360 fighting for the second spot. However, Wii is seriously handicapped by being known under a different name for
Try checking your punctuation (Score:5, Interesting)
http://www.google.com/trends?q=xbox360%2C+playsta
Anyways, as was already noted, Google trends don't exactly indicate hard scientific data, and especially sales. The 360 outsold the Wii 3/2 in the US over the holidays and the PS3 3/1 yet it lagged behind both of them in the Google trends for that period.
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Your very first trend when properly entered actually shows the PS3 slaughtering the other two. Not that people searching for information is going to translate into relevant sales numbers when the console prices are so different.
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Analysts (Score:2)
> worth tens of millions of dollars. These aren't some fanboys sitting around pulling data out of
> their ass.
No, they are some con artists pulling data out of their ass. I have never seen an "analyst" being right in any prediction. They seem to score below what random chance would give.
The reason they are used none the less is that the "deciosion makers" are afraid to make decisions, and use the expensi
Re:There's no fucking way (Score:4, Informative)
Firstly, many people refer to the "Playstation 3" as the "PS3". Secondly, it _might_ help your test results if you used "Playstation 3, Wii" instead of "Playstation 3.wii". So, let's take a look at the _real_ trend:
http://www.google.com/trends?q=xbox360+%7C+(xbox+
Finally, before trending the HD formats, it would make your argument more convincing if you spelt "Bluray" correctly:
http://www.google.com/trends?q=bluray%2C+hddvd&ct
If there ever was a good example of skewing of test results to conform to ones own opinion, it would be your misinformed post.
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http://www.google.com/trends?q=blu-ray%2C+hd-dvd&
Now who can say HD-DVD has the uncontested Google Trends lead (however much that means), looking at that graph with both terms spelled correctly?
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http://www.google.com/trends?q=bluray%2C+hd-dvd&c
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In the home theater market, the driving force is more likely to be Disney and Time-Warner. Porn may obsess the Geek, but that is not why the family room gets the 60" DLP projection set and the XBox 360.
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1) HD-DVD is cheaper to manufacture
2) Porn has chosen HD-DVD as it's main format
3) Blu-Ray is Sony's format - this makes, some people hate it, period.
4) Much more expensive to manufacture
While I agree, I think it is important to point out that the pr0n industry hasn't chosen HD-DVD. Quite a few companies were actually behind Blu-Ray until recently when it came out that companies are not allowed to make XXX Blu-Ray discs. XXX compan
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If you spell blu-ray correctly, results differ... (Score:2)
However, pedantic note -- you spelled "blu-ray" incorrectly. With the silly correct spelling, the results for "blu-ray" and "hd-dvd" are roughly even...
http://www.google.com/trends?q=blu-ray%2C+hd-dvd& c tab=0&geo=all&date=all [google.com]
But thanks again for pointing out the function.
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Of course, said analist either also seems to have a very selective memory, or stock in Sony, since his "best guess" is that BR 'wins' the format war.
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Red Steel was a broken game that should not have been on sale, that was Ubisoft being retarded, and while Call of Duty 3 has people complaining about not being able to play for more than an hour before their left arm gives in and they cannot keep their direction set right - Nintendo does advise regular breaks from con
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Am I the only one that finds this statement confusing? If the hardware is so impressive, why the lack of enthusiasm and how does that help the PS3 in the long run?
I disagree. The online-multiplayer market may be the smallest but you're
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Enjoy your stay!
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