The Death of the Video Game Console Market?
At the New York Games Conference this week, Alex St. John CEO of WildTangent, claimed that both Microsoft and Sony are not developing next generation consoles.
To quote: "Sony is not the company they use to be and the PlayStation 3 is a market failure. Sony will never recover the billions they lost on the current generation of consoles.
Sony says were not making another for ten years, which is code for we can never make back the billions on we lost on PS3, let alone convince our executives let's make one again.
Microsoft has a hole mile deep dug in the middle of Microsoft's Campus to bury the billion dollars of broken Xbox 360's they got. The Xbox business is not a profitable business for them.
It's only become incrementally profitable for them after many years, and billions invested..." More PlayStation 3 News...
They've both lost money on the consoles, but Sony used the PS3 as the launchpad for their BlueRay format, and over the next few years they'll make the money back on BlueRay sales so they won't lose overall.
But, having succeeded with the BlueRay do they have any reason to bring another console out? Since as the PS3 is upgradable I'd be surprised if we see one before that 10 year estimate, but if they have another format to launch (and I suspect they will in the next decade) then I'd expect a major part to be a console.
As for Microsoft I think we might see one more from them becuase of the money they can throw at it, but only if they can manage to keep 360 numbers above the PS3.
Sony never plans on a console this early. They like to keep their consoles alive for 10 years before discontinuing them. Also there is no reason to discontinue them. So I'm not too worried.