You figure the overall market is increasing. Not only are games more accepted as a mainstream entertainment choice, the people who gamed back in the Atari days or at least the NES days are still gaming and introducing their children to gaming.
Now there may not be too many kids under 10 who get a leading-edge console but when they grow into their teens, they might. You couple that with people in their 30s and 40s and maybe even older still buying consoles (which are more than game-playing toys which they used to be even just 10 years ago) and you have the potential for a growing market.
If gamers grew out of playing games, the way say kids grow out of buying tricycles or bikes with training wheels, then the market might be static or at the mercy of the birth rate. But if older gamers are sticking with the hobby and children are growing up with the games...
Or another analogy might be smoking. They have to get new kids hooked on it because the older smokers are dying off or trying to quit. So that market has to constantly be developed.
Don't want to rehast the same arguments from the other threads but Blu-Ray will have more impact than the DVD drive in the PS3 because in 2006, the PS3 will be one of the few 1080p sources. In the US, this is the first year with a number of 1080p displays. You can bet there will be more next year and the year after that and prices will come down. People who already have HDTVs will probably upgrade in the next few years and they're going to be looking for sources to feed these expensive toys.
Now there may not be too many kids under 10 who get a leading-edge console but when they grow into their teens, they might. You couple that with people in their 30s and 40s and maybe even older still buying consoles (which are more than game-playing toys which they used to be even just 10 years ago) and you have the potential for a growing market.
If gamers grew out of playing games, the way say kids grow out of buying tricycles or bikes with training wheels, then the market might be static or at the mercy of the birth rate. But if older gamers are sticking with the hobby and children are growing up with the games...
Or another analogy might be smoking. They have to get new kids hooked on it because the older smokers are dying off or trying to quit. So that market has to constantly be developed.
Don't want to rehast the same arguments from the other threads but Blu-Ray will have more impact than the DVD drive in the PS3 because in 2006, the PS3 will be one of the few 1080p sources. In the US, this is the first year with a number of 1080p displays. You can bet there will be more next year and the year after that and prices will come down. People who already have HDTVs will probably upgrade in the next few years and they're going to be looking for sources to feed these expensive toys.