About a few months ago, I read an article on Yahoo saying how the hardcore video game industry is going to be wiped out, and around the same time IGN posted an article saying how the industry is making less money each year.
Why? First, there’s a lot of risk when making a big game for consoles. Second, as the article on Yahoo pointed out: Angry Birds costs $1 and Gears of War 3 costs $60.
Not many people are going to throw down $60+ for a console video game when they can buy a $0.99 game on their smartphone or tablet that’s just as fun and valuable.
I can, but am having trouble to, understand why some people believe that the hardcore console industry is going to die. As far as the console companies go, Sony and Microsoft are two giant institutions that will not simply drop their consoles and say, “Well, we’re going to go out of business soon. Better stop now.” Microsoft and Sony have seen this already and they’ve been trying to remedy the situation for years now.
See, the Xbox 360, and PlayStation 3, is a beast of a media center device when compared to other media center devices, like Roku. On the Xbox 360 and PlayStation 3, I can stream music and videos from other devices, watch Netflix or Hulu, and even cable TV (Xbox 360 only.) A Roku 2 XS and Apple TV cost about $100 and deliver many of the same services as the Xbox 360/PlayStation 3, which costs only $200/$250.
One of the obstacles with the 360 and PS3 is that they’re seen by many people in only being $200 devices that only play $60 video games; nothing else. What Microsoft and Sony may do is spread the word that their consoles can do the same thing as your Roku or Apple TV, but more.
As far as the guys who make the games for the consoles, well… Hopefully, developers can start making their own winning companies rather than working for someone like THQ and eventually getting fired. Otherwise, embrace lower salaries.