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EA: 'Sharp and distinct' console transition unlikely
It's not exactly surprising to hear EA Chief Financial Officer Eric Brown say that we won't see the "sharp and distinct console transition like we've seen in the past." It's a notion we've heard before and something that THQ boss Brian Farrell explained a couple years back, dividing the current cycle into three distinct sub-cycles: handheld, Wii and another group of Xbox 360 with PS3. Brown's issue had more to do with pricing, noting that half the PS2's sales occurred after the console hit $150, which the PS3 at $300 is nowhere close to. Comparing it to the last console cycle, Brown doesn't feel pricing has come down to where the publisher would have expected it to. Given the amount of investment required in the current round of HD gaming, it's unlikely we'll see publishers wanting to invest heavily into whatever's next -- especially in this economy. [Via IndustryGamers]
Report: Console life cycles grow as big three share the market
We've heard from a few non-Microsoft sources that the Xbox 360 is heading for an extremely long console cycle, but last week's CES found Microsoft saying exactly that. David Hufford of Xbox product management mentioned during a briefing that the 360 is "the console of the long future for us," and that he doesn't yet know "if we're at the midpoint" of the console's timeline. Which sounds pretty amazing, since the console actually released in 2005, but the numbers support that theory, with adoption only recently passing the rates of the last generation. In other words, the mad dash from 8- to 16- to 32- to 64-bit and beyond gaming has apparently relaxed for the moment, and Jack Schofield of The Guardian says it's because all three major companies at the moment (Microsoft, Sony and Nintendo) have all achieved a viable place in the market. Without feeling constant pressure to outdo each other, the major console companies can settle into their own niches and expand their own markets. Which, as Hufford said at CES, is exactly what Microsoft is planning to do in the coming "Natal era."
Analyst: Next console cycle isn't coming until 2013
Compared to last Spring's outlandish software sales figures (fueled by the release of Super Smash Bros. Brawl and GTA IV), this year's stats aren't inspiring much confidence in gaming industry investors. In fact, many are anxiously awaiting the launch of new hardware to provide a quick sales boost -- but according to industry analyst Michael Pachter, they shouldn't hold their breath: By his estimation, new hardware won't be hitting store shelves until at least 2013.Pachter said that publishers would be hesitant to adopt new hardware considering their investments in the current console cycle have yet to adequately pay off. There's one exception -- Pachter expects the oft-rumored high-definition Wii may appear some time in 2010.
THQ boss declares console cycles dead
THQ president and CEO Brian Ferrell believes traditional hardware cycles are dead. MTV Multiplayer reports that Ferrell explained his thinking at a leadership conference and believes there are now several sub-cycles in the industry. Sub-cycle #1: The Handheld market. Sub-cycle #2: The Wii market. Sub-cycle #3: The Xbox 360 and PS3 market. Ferrell even thinks that the online market is becoming its own category. He expresses it's hard to do business around traditional concepts like "the cycle" and that THQ now plans around platforms. The THQ CEO does have a point, there's a lot of different pools for publishers and developers to jump in ... although we hear someone left a deposit in the PC one.
MS: 360 will beat 5-year console cycle
It seems like everyone is eager to jump on the idea that today's game consoles will be around for quite a while. Sony started the shenanigans by touting that the Playstation 3 would enjoy a ten year lifespan before all was said and done. Now Microsoft has boarded the bandwagon, with entertainment division chief financial officer Mindy Mount proclaiming that the console could beat the long held five year console cycle (a feat the previous Xbox did not achieve). Mount points to the success of the Playstation 2, which has been chugging along for 7 years now. She's hopeful that the 360 is able to beat the cycle as well, noting, "If we were able to do that, as CFO I think that's great, because every year you draw it out you increase profitability." Indeed.We should mention that our colleagues at Joystiq point out the irony of the situation, reminding us that many Xbox 360s fail to "make it past five months, let alone five years." In other words, Microsoft will have to make sure its product will actually last more than five years before we can start discussing longevity in the market. Hopefully the new Falcon CPU and shoehorned heatsinks will get the job done.[Via Joystiq]
