Written by Gavin Wright  on August 16, 2002

Specials: "Ok, let me see if I got this right boss. So first we conquer the home entertainment market, and then we take over the world?"

Tweet

Comments

With the current generation of consoles already in the hands of the public, console manufacturers, namely Microsoft and Sony, are already looking to the future to ensure that they don't lose ground in the market. But the next generation of video game systems is of particular importance to the industry. Over the next few years, we are going to see some of the major names in the gaming industry attempt to redefine the way we think of video games, with their eyes set on cornering the entire home entertainment market.

To accomplish such a lofty goal, these companies are going to have to create an affordable replacement for not only the video game console, but also an assortment of other living room devices. Consumers would catch on to the product because it would eliminate the need to buy multiple, high-priced components and would encourage them to buy the product for features like DVD playback and live TV recording that they wouldn't have invested in otherwise. For a company like Sony, the device would give their subscribers a perfect chance to download Sony Picture's latest movie trailers or perhaps preview their newest line of digital cameras. For Microsoft, it would allow their customers to check out their latest computer software and video games. Both companies are hoping that these devices will aid them in taking over every facet of our living room.

The next evolution of home video game consoles could very well rid the consumer of the need to physically own the games themselves. Instead, software would be downloaded from a high speed server directly to a box at home with sizeable storage space, at perhaps 25-30 dollars each. This would lower unit costs by eliminating the need for a disk drive and laser lens, making it possible once again for a company to actually make money off of each console they sell. Temporary rental agreements could also be set up over the network, allowing the user to keep a game on their hard drive and then automatically erase itself after a certain period of time. Game demos could be released in a similar manner, allowing people to try out any game before buying it.

This new approach to console gaming would bring about some considerable changes to the industry. For one, allowing gamers to test drive titles before buying them would force developers to create better games. It would also lessen the need to spend money on advertising, since anyone that's interested in a game could simply give it a test drive and decide for themselves whether they like it or not. It could even one day make video game magazines and websites obsolete, with consumers no longer dependant on the opinions of other people to make purchase decisions.

It was a bold move for Sony to announce the development of a new console so early in the PS2's lifespan, considering that it may encourage potential buyers to skip out on Sony's current generation console and hold off for the Playstation 3. Their reasoning for this, as stated by Sony officials, was that the Xbox's graphical leaps have forced them to rush a new console out the door more quickly than they had anticipated. They also realize that if they sit back and allow Microsoft's Xbox Live program to gain acceptance, they could gain a foothold in the online market that could potentially leave them in the dust. Sony has proven themselves very skilled at getting consumers to buy into their products, and they're no strangers to hyping up their own merchandise.

Sony has a unique plan driving their Playstation 3 console that could end up giving them a tremendous advantage over the competition. Applying a method known as Сdistributed computing', the PS3 will apparently be able to achieve a 1,000-fold increase in performance over the Playstation 2. It is estimated that at peak times about 20% of gamers will be using their consoles, leaving 80% of the processing power untapped Distributed computing is a technique that shares computational tasks across a network, utilizing that dormant processing power from consoles that aren't currently in use. Of course, such a network would undoubtedly depend on a fast internet connection to run it, but by the time the PS3 hit the market broadband should be a market standard. Under Moore's Law, a raw hardware increase of this rate wouldn't be possible for another 20 years, but by using this method they will be able to forego a full three generations of hardware advancements. Of course, with the high-speed network already in place, online gaming and file sharing would be easier than ever to pull off, not to mention features like web browsing and TV recording.

Microsoft has kept rather mum with concern to details regarding a follow-up to the Xbox. What they have given us is a rough release date, going on record saying that the console should be on store shelves by 2006, and also an announcement of a renewal of their partnership with Nvidia for development of the core graphics chipset. They've also stated that the hardware will be custom-made for the console, as opposed to the slightly-modified G-Force chip found in the Xbox. Everything else to this point is merely speculation. However, with the company's recent announcement of an Xbox/Ultimate TV hybrid, it is likely that the hardware will also be included in their next system. But for Microsoft to stay ahead of the curve they will need to create something that is not only a video game machine, but also a replacement for the home computer, DVD player, and TV recorder.

As said earlier, both Sony and Microsoft are counting on broadband internet access to deliver their content. Although broadband has only gained about 15% penetration in the U.S. thus far, that number is expected to skyrocket in the coming years as prices go down. However, as is the case with Sony's PS3, since most processing power is done through a network there is the possibility of lag even in offline games, which could be a very difficult thing to accept.

Bottom Line
Sony is taking a bold move with the Playstation 3, demanding that the company's competition either match their plans or risk losing their place in the industry. If Microsoft sticks to a more traditional business model for the Xbox 2, they stand to fall prey under Sony's more ambitious workings. Regardless, both Sony and Microsoft realize the importance of this next generation of game consoles, seeing as the winner of this battle could inevitably dominate all aspects of home entertainment.