Why Consoles Are Going Extinct
Going Indie・23 minutes read
Consoles have played a critical role in the gaming industry, evolving from the Nintendo Entertainment System to current competition between PlayStation and Xbox. Microsoft is focusing on cloud gaming and subscription services like Game Pass to adapt to the changing trends in the gaming industry, anticipating a shift away from traditional consoles towards more accessible and versatile gaming options.
Insights
- Consoles have played a significant role in gaming history, from the NES setting high standards for quality to the current focus on cloud gaming and subscription services.
- The console wars, starting with Atari vs. Intellivision and evolving to Sony vs. Microsoft, have driven innovation in the industry, but the future trend is shifting towards hybrid consoles, cloud gaming, and global expansion, with Microsoft leading the way in subscription services like Game Pass.
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Recent questions
What popularized video games in the '90s?
The Nintendo Entertainment System (NES)
What led to the crash in the video game market in 1983?
Low-quality games and the rise of personal computers
Who challenged Nintendo in the second console war?
Sega Genesis
What did Sony's PlayStation focus on in the console market?
Dominating the market
What prompted the shift towards cloud gaming and subscription services?
The end of the console wars
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Summary
00:00
Evolution of Consoles: From NES to Xbox
- Consoles have been pivotal in the world of gaming since the '80s, with the Nintendo Entertainment System popularizing video games in the '90s.
- Consoles have evolved over the years, with the Super Nintendo and PlayStation 2 leading advancements in home entertainment.
- Consoles have faced challenges in recent years, losing market share to PCs and phones, prompting investors to caution against console development.
- The console industry was once dominated by console wars, driving innovation and competition among companies.
- The first console war between Atari and Intellivision led to a crash in the video game market in 1983 due to low-quality games and the rise of personal computers.
- Nintendo emerged as a savior with the NES in 1985, setting high standards for game quality and affordability.
- The second console war began in the '80s with Sega Genesis challenging Nintendo, followed by Sony's PlayStation entering the market and dominating.
- Microsoft entered the console market with the Xbox, offering powerful hardware but facing challenges in game availability.
- The following console generation saw fierce competition between Xbox 360, PlayStation 3, and Wii, each offering unique features and games.
- Sony's PlayStation 4 and Microsoft's Xbox One faced contrasting receptions, with Sony focusing on games while Microsoft's emphasis on multimedia led to criticism.
13:54
Microsoft's Game Pass: Future of Gaming Subscription
- Microsoft spent over $80 billion on game studios to create the Netflix of gaming, aiming to become the new market leader and offer the best gaming subscription service.
- Game Pass, Microsoft's subscription service, is affordable, versatile, and accessible on almost any device, including Windows PCs with 1.4 billion units worldwide.
- Microsoft's plan involves making gaming, specifically Game Pass, accessible everywhere, as shown in a leaked Xbox infographic detailing future hardware for gaming on various devices.
- Despite the future trend towards cloud gaming, Microsoft continues to produce consoles due to technology limitations and the need for adequate hardware for high-fidelity games.
- Crossplay between consoles, exemplified by Fortnite, led to a shift in the gaming industry, with Sony eventually allowing cross-platform play after pressure from players, companies, and Xbox.
- Microsoft officially declared the end of the console wars in 2023, acknowledging their loss and emphasizing the shift towards cloud gaming and subscription services.
- The future of gaming points towards hybrid consoles, cloud gaming, and subscription services, with consoles gradually decreasing in importance as gaming expands globally, especially in markets like China and India.
