Model of business of Next-Generation Hardware

[TheChefO]

I'm not sure consoles will be able to command $400 every 2 years.

That's the thing, it wouldn't be a complete break where software is only written and compatible for that one console which has a 2 year lifespan.

For those that don't want/need the new console 2 years after they bought theirs, that's fine, the new software on the shelf would still play perfectly on the original console.

It would just play better on the new one.

No commanding here, just an additional option! :smile:

 

[Shifty Geezer]

That's the thing, it wouldn't be a complete break where software is only written and compatible for that one console which has a 2 year lifespan.

For those that don't want/need the new console 2 years after they bought theirs, that's fine, the new software on the shelf would still play perfectly on the original console.

It would just play better on the new one.

No commanding here, just an additional option! :smile:

But how will people afford a $400 upgrade when they've spent $600 on ten games the past two years? Okay, those games will still play on the new console, so they could enjoy Gears 4 on their new box when everyone else who didn't upgrade can afford to play Gears 5, but that'll be small consolation.

Who here is playing 2+ year old games much on their console?

 

[TheChefO]

But how will people afford a $400 upgrade ..

I dunno, ask ipad2 owners...

The fact that people upgrade has nothing to do with buying games.

It's not as though people stop buying games for a couple years to save up for the nextgen console when it comes out ...

 

[Shifty Geezer]

I dunno, ask ipad2 owners...

They spend $400 on an iPad, and $30 on games and apps over 2 years because most of them are free, for a grand total of $430 over two years (made up figures).

Your proposing someone buys a $400 console, then $600 of games, at $1000 every two years, and then buys a new $400 console and repeats.

 

[TheChefO]

They spend $400 on an iPad, and $30 on games and apps over 2 years because most of them are free, for a grand total of $430 over two years (made up figures).

Your proposing someone buys a $400 console, then $600 of games, at $1000 every two years, and then buys a new $400 console and repeats.

As I said, the new console after two years would be an option.

Someone that hasn't bought into the platform yet could decide to buy the cheaper older model or the more expensive newer model.

Someone that bought in on the first gen may decide they want better graphics and upgrade after only two years, or may decide to wait to upgrade or not upgrade at all.

None of these upgrades would be mandatory to play the games of the platform for that generation.

 

[MarkoIt]

They spend $400 on an iPad, and $30 on games and apps over 2 years because most of them are free, for a grand total of $430 over two years (made up figures).

Your proposing someone buys a $400 console, then $600 of games, at $1000 every two years, and then buys a new $400 console and repeats.

Most of the content of the newer console will still works on the old one, just with cut-down graphical features.
I'm sure that there quite few users that would upgrade after 2 years to a new console for higher-fidelty graphics.
Maybe an every year update is too much, but a 2 year update model on a 4 years generation cycle could work.
Launch at $400 in 2013, with 5x times the current technology
Launch at $400 in 2015 with 2x the 2013 console.
2017, new cycle.

In this model, which in the end is similar to mine, hardware doesn't generate neither a loss or profit. It's just a way to convey the content..

Taking the model a step further would be to launch Xbox and Playstation no more as consoles, but as content-delivery platform, which could run on multiple enviroments.
The biggest content platform out there are:
- Itunes, music and movies
- Steam, gamingv
- Netflix, movies
Xbox and Playstation could become a 360° content-delivery platform, integrated in dish network setbox, televisions, computer, smartphone, tablet and so on.
The platform holder may decides some specification to avoid an excessive fragmentation of the market.
Apple seems that's going to launch an iOs tv this year, there were rumors of Kinect being integrated in some television... Playstation Suites runs on phones, and so does Xbox Live.

Three main platform:

Apple: iOS+iTunes
Microsoft / Nokia: Windows Phone+Xbox Live
Google/ Sony: Android + Playstation Suite

 

[wco81]

Many of us here might buy a console every two years (though not for only a 2X jump over the previous revision) but among the tens of millions who bought consoles, a lot of people would not.

Remember, a big portion of console sales occur after a price cut or two, so the first year or two of a console doesn't see that many sales. If they're perpetually keeping the price point at $400, with $60 games since the publishers won't cut prices as aggressively in the first part of a console cycle as the second part (where we are now, with a lot of games prices dropping quickly after release), then it may be difficult to build up high sales volumes.

 

[-tkf-]

There is really no question in my mind that the stores will be linked across win 8 which will power everything for MS going foward.

I wonder how devs and publishers will like this. Will they mind a xbox next game running on windows 8 with a single purchase ?

Anyway isn't that why people buy an Ipad over an andriod tablet even when its specs are worse ? Because apple is using its phone apps to get them over ?

Are you suggesting that the game i buy for my 720 will run on my Win 8 PC?

I can see how APPS could be able to do this, but i doubt it will possible to do with games.. but it would be very cool

 

[wco81]

Why would they forgo the revenue opportunities to sell you two copies instead of one?

 

[TheChefO]

Why would they forgo the revenue opportunities to sell you two copies instead of one?

"A bird in the hand is worth two in the bush"

For publishers/developers, selling the same exact game, over and over again is a poor business model to try and leverage a future on.

If the hardware is not sold at a loss, MS cares not where you play the game, nor what you do with the console.

In fact, it opens the possibility of launching a full windows8 OS on the console.