Friday, May 24, 2013

Microsoft and Game publishers will get a cut of Xbox One used game sales




Posted by Tiberius Jonez
email at tiberiusjonez@gmail.com
Twitter: TiberiusJonez@GameJonez


I speculated a while back that this coming generation of consoles would be the last, and that the way games will be sold in the future will eliminate retailers like Gamestop, who rely on the fat profit margins they reap on used game sales, virtually overnight. The first step in that direction was confirmed today when it was revealed that Microsoft and game publishers will get a cut of all Xbox One used game sales.

 According to MCV, Xbox One used game sales will be permitted but retailers who choose to sell them will need to use Microsoft’s Azure-based cloud system to do so. This will ensure that Microsoft and game publishers get a percentage of the used game sale rather than having the entire sale go to retailers like GameStop, as is now the case.

Here's how it will work. Consumers will bring their used game(s) into a retailer and trade it in for cash or credit just like they do now. The retailer will then enter it into their Azure system and wipe the game from the seller’s Xbox One Live profile. Retailers will be permitted to set used game prices, within reason, with the eventual sale divided three ways based on a (presently unknown) split percentage determined by Microsoft.

Rumors are flying that the percentage to retailers may be as low as 10%, which could effectively kill used game sales due to the fact that retailers would have very little incentive to go through all the work required to sell used games for such a small profit margin.

It has long been suspected that, at some point, developers and publishers might disallow used game sales altogether, but Microsoft is the first to come up with what appears to be a viable alternative to an outright ban. The move is a very shrewd one as it is sure to draw more developers to Microsoft's new console. Surely, some of those developers will become Microsoft exclusives. I suspect it won't be long before Sony and  Nintendo follow suit.

Microsoft's Major Nelson posted a response to rumors on his website essentially revealing nothing other than "Microsoft supports the sale of used games" and that more information will be coming soon. Not incidentally, Gamestop's stock dropped 5% in early reaction to the news.

Wednesday, May 22, 2013

Xbox One – One machine to change your living room forever?


Posted by Tiberius Jonez
email @ tiberiusjonez@gmail.com
Twitter: TiberiusJonez@GameJonez


Still a box, but a pretty one.
Depending on your point of view, Microsoft's big reveal yesterday meant different things to different people. Early opinions and impressions from around the net seem to range from “Holy Cow, that thing is bad-a$$!!”, to “Big deal!?” to “Where were the games?” and an occasional “Nintendo is dead either way!”. Regardless of your overall opinion of the presentation though, there is no denying, parts of it were pretty darn impressive while other parts were a bit underwhelming. Oh, and while they didn't reveal pricing or an exact release date beyond "later this year", they did show an actual final-design console and controller! Wink, wink.


On Sunday, prior to the big show, I speculated on what to expect from the big reveal and, as is par for the course, I was right about a couple things, and wrong on a couple others.
The name: Virtually everyone, including myself, seemed to think the name was surely going to be Xbox Infinity, but in what I considered to be somewhat of a surprising turn, Microsoft chose to go with the name Xbox One; the stated implication being that their new box is a one-stop-shop for all things games, TV and entertainment.
I found this interesting because prior to the Xbox 360 being released, several game journalists at the time suggested that, even though the console would be only the second offered by Microsoft, the company might find themselves at a competitive disadvantage if they named their pending console without alluding to the number "3" in the name, simply because Sony would surely be following them with their own third-generation console which everyone assumed (correctly) would be named the PS3. Surely, it was suggested, if MS named their console the Xbox2 instead of something akin to the eventual actual name, Xbox 360, the uninitiated (specifically parents purchasing for their kids) might mistakenly assume the MS machine were inferior to the competition simply because the name suggested being a generation behind.
While reflecting on the name Xbox One, it occurred to me the name suggests a couple things; first, that Team Xbox is now self-assured enough in their ability to compete with, and differentiate themselves from, Sony, that they are comfortable allowing their newest offering to be judged solely on its own merits, name be damned. Secondly, they are going ahead with their assertion that the name should be suggestive of the console's feature set, rather than what it may or may not suggest console-generation wise. Judging by the roar of applause from the audience in attendance, the console's name and physical appearance, which were revealed simultaneously, were both a hit.
Regarding the look of the console... I thought the Xbox One's physical design was simple, elegant and functional. However, I was more pleased by the 40 plus improvements they've reportedly made to the Xbox One controller, most notable of which are, 15% quicker responsiveness overall, and triggers that feature programmable levels of feedback. Whether this simply refers to force feedback, or, as many have assumed, something much deeper, such as different levels of resistance (say, for different gas and brake pedals of different cars) was not exactly spelled out. Point being, if they've managed to make significant improvements to what many already consider to be the most functional and comfortable controller on the market, then kudos to them!

Always on required or not: Confirming my expectation, the Xbox One does not require an always-on internet connect to function. However, you certainly reap the machine's greatest rewards by being connected. So, was this point a moot one from the outset? Certainly not. If Microsoft had “forced” consumers to have an always-on internet connection to function, the backlash would likely have been swift and severe, especially in the U.S., where consumers simply don't like being told what they can or can't or should or shouldn't do.
I thought MS demonstrated a keen understanding of the marketplace; by not requiring always-on internet they appeal to the “games only” crowd, while making it clear to those looking for a much more robust experience that if you are always online, then this thing has the potential to truly revolutionize the way you interact with all of your entertainment experiences.
A quick note about the new Kinect-centric Xbox One interface: what was most impressive to me and, judging by the applause, those in attendance, was just how intuitive and responsive it is in action. When Xbox Design Exec, Don Mattrick, in real time and using only his voice, switched between different functions of the Xbox One, going from playing the new Forza, to live TV, to a movie, to music, then to Internet Explorer and back to the Home page, the transitions were seamless and virtually instantaneous. This part of the demonstration made it clear that the Xbox One does indeed have some serious horse power under the hood. It was very slick and impressive.
The final two points I speculated about are so intertwined that it makes more sense to address them in tandem, rather than separately. Entertainment vs Games and Differentiating the Xbox One from the PS4: If you go back and look at much of the pre-reveal speculation around the net, the single biggest question for most people seemed to revolve around whether or not MS would take an approach focused on games and gamers or one focused more on overall entertainment possibilities. Additionally, I speculated that if it were true, as rumored, that MS intended to include a cable box in the Xbox One's hardware, depending on what features it made possible, that it alone could be a real differentiator for MS and possibly an instant game changer with the potential to tilt the field in their favor vs Sony, at least early on.

As it turns out, MS is indeed taking a decidedly entertainment focused approach with the Xbox One. That's not in any way to say it will be inferior to the PS4 as a gaming console, as some have suggested, we simply don't have enough information at this point to make a determination either way. It didn't help that at the reveal, very little actual game play footage was shown, clearly disappointing the crowd in attendance.
When they did show footage, which was clearly not in-game, but more likely replay footage, of the four new Xbox One sports offerings from Electronic Arts (Microsoft exclusives, by the way), the crowd's underwhelmed reaction was evidenced by a palpable moment of silence which hung in the air for a good three seconds. Game-play footage shown from a few other games, including the new Forza and even Activision's Call of Duty: Ghosts, was so brief that, again, it was nearly impossible to come to any conclusions regarding the Xbox One's gaming-only potential.
The one piece of game-centric news that did produce an instant and genuine show of appreciation from the crowd (and myself) was the fact that, of the 15 Microsoft-exclusive titles scheduled to be released within the first year of the Xbox One's launch, 8 of them are brand-new IP's. From the research I was able to do, no other console in any previous generation has debuted so many new, exclusive IP's in it's first year. The fact that the new next-generation Forza would be available at launch was also met with clear approval.
Converse to the underwhelming reaction to what little was shown of the console's games, when it came to overall entertainment, the functionality of the new Kinect-centric Xbox One interface combined with many new functions and features, including a new exclusive partnership with the NFL and real-time integration of fantasy league stats from all the major sports during live TV broadcasts, while providing just a glimpse of this new technology's potential, were impressive and well received.
So, what does all this mean in the early battle for market supremacy between Microsoft and Sony? Is it all just a lot of sound and fury signifying nothing? It's too early to answer that question. According to Team Xbox, we'll have a much better idea in just under three weeks when at E3, much more will be revealed about the Xbox One, specifically, a lot more exciting game-play footage and game related news and information.
Assuming Sony is prepared to show more of the PS4's features and functionality at E3, as well as an actual console, everyone should be in a much better position to start forming some concrete impressions and opinions of both console's relative positioning prior to their respective launches later this Fall.
For now, I would say the only clear winner is E3. With a bit of fan-fatigue setting in recently for the industry's annual blowout, anticipation of what Microsoft and Sony will show there now has gamers around the world once again pumped up for what could be one helluva show, and showdown.
So, what did you think of Microsoft's big reveal? Comment below and let us know. As always, thanks for visiting GameJonez and Game On!!
 


Sunday, May 19, 2013

Microsoft Reveal Week Is Here - what to expect


Posted by Tiberius Jonez
email tiberiusjonez@gmail.com
Twitter: TiberiusJonez@GameJonez

Microsoft is set to reveal their follow up to the Xbox360 this coming Tuesday,  and among other topics, there are a ton of rumors going around about the name, what the console will or won't do, and whether MS's focus is going to be primarily on games and gamers, or a more rounded "center of entertainment" approach.

It's always fun to speculate about these things, so without further ado, let the speculating begin!

The Name: It seems to be a foregone conclusion that the console is going to be named the Xbox Infinity. Not only is the source that leaked the name credible, but the name makes perfect sense given MS's past focus on offering as many different quality features and options as possible to their consumers. NextBox is too bland and Xbox720 too predictable.  Have a different name in mind? Comment below.

Games vs Entertainment: Since they burst onto the console scene in 2001, Microsoft has been quietly, and at times, not so quietly, focused on a much broader and future-thinking goal than simply creating a good gaming console. While the Xbox360 is a quality gaming machine - especially since they went to the "slim" design, Microsoft has added so many other features aimed at social media, connectivity, music, TV and Movies (Netflix), and on and on Ad Nauseum, one can barely keep track of them all.

Their end-game has always been to eventually offer a set-top-box that is a one-stop-shop for all your gaming AND entertainment needs. With the new generation of micro-processors, they finally have the raw horse power to do it, and do it well. The only question in my mind is, with a Gaming/Entertainment approach, will they be forced into any kind of compromise that could result in a gaming console significantly less powerful than the PS4 or will they be able to successfully tow both lines?

I expect the new Xbox to be at least as powerful as the PS4. I never underestimate Bill Gates and Company. Microsoft has proven over and over again that they can raise the bar, innovate, and compete with anyone in this industry. They have basically dethroned Sony as the Console Superpower during this generation and now both companies find themselves in a virtual dead heat moving into the next generation... likely the last console generation.

Always on connectivity required to play games or not? I'll be brief on this one...no way! While the fact is the vast majority of gamers, especially Xbox gamers are online, I still don't believe Microsoft will gamble with their hard-won market share by forcing consumers to have a broadband internet connection in order to play games. There is simply too much possible downside to justify such a move.

Differentiating the next Xbox from the PS4: I believe Microsoft has one card up their sleeve that could be a real game changer. If the rumors of an integrated cable box/DVR in the next Xbox are true, that single hardware difference alone opens up so many possibilities in gaming and entertainment, it could singlehandedly tilt the field in Microsoft's favor. If true, I think Sony would almost be forced to either change the design of the PS4 to include similar hardware prior to release, or have a mid-generation hardware change that integrates it.

There are lots of other topics we could cover, so if you have additional insight, thoughts, predictions for Microsoft's big reveal this week, comment below! Otherwise, comeback Tuesday evening for my thoughts on the event.

Friday, May 10, 2013

Xbox Infinity logo is fake, the name is not

Posted by Tiberius Jonez
email at tiberiusjonez@gmail.com

GameJonez has learned that the logo pictured below, and featured in a story I posted yesterday is a fake.

The Xbox Infinity logo is fake, the name is not.
Reddit originally posted the image in an article revealing the name Xbox Infinity. This is the second fake "leaked" image of a supposed new Xbox logo. While the image may be fake, the name Xbox Infinity appears to be real.

According to International Business TimesSources related to development of the new Xbox have confirmed to IBTimes UK that the console, which is scheduled to be launched on 21 May, will be called Infinity.

I consider "launched" to be the wrong term; "revealed" would be a more accurate description of Microsoft's May 21 event. With any luck, all will truly be revealed then.

The console is expected to be released in November with two different prices available. Standard pricing will be $500, with a $300 version available with a two year commitment to Xbox Live Gold at $15 per month. The second option essentially ends up equaling $660.

I have to say, if this pricing structure is true, it's an ingenious move by Microsoft for three reasons. First of all, it almost surely undercuts whatever price Sony will announce for the PS4. Secondly, I suspect for an extra $160 over two years, the vast majority of consumers will gladly make the commitment to Xbox Live, something they're likely to subscribe to anyway, in order to save $200 now. Thirdly, that's $200 more in Microsoft's pockets. After all, where do you think that $200 is gonna go? Duhhhh!!, $200 represents three games and an accessory. Those guys in Redmond ain't no dummies.

$500 Xbox Infinity is $300 with 2 Year Xbox Live Contract

Posted by Tiberius Jonez

This logo is fake



According to rumors on several sites around the net, (I'm not linking to them as they are unconfirmed) the next console from Microsoft, reportedly named "Xbox Infinity", is expected to be released in November with two different prices available. Standard pricing will be $500, with a $300 version available with a two year commitment to Xbox Live Gold at $15 per month. The second option essentially ends up equaling $660.

I have to say, if this pricing structure is true, it's an absolutely ingenious move by Microsoft for three reasons. First of all, it almost surely undercuts whatever price Sony will announce for the PS4. Secondly, I suspect for an extra $160 (significantly less if you already planned to join Xbox Live Gold) over two years, the vast majority of consumers will gladly make the commitment to Xbox Live Gold, something they're likely to subscribe to anyway, in order to save $200 now. Thirdly, that's $200 more in Microsoft's pockets. After all, where do you think that $200 is gonna go? Duhhhh!!, $200 represents three games and an accessory. Those guys in Redmond ain't no dummies.

Do you think this rumor is fact or fiction? My vote is fact. It sounds exactly like something Microsoft would do.

So, what do you think about this? Comment below!!

Thursday, May 09, 2013

Simple math says Microsoft's next console is named Xbox Infinity?

Gamespot is reporting that the Nextbox will be named "Xbox Infinity". It's hard to argue when this visual shows the Xbox name next to a mathematical representation of infinity.


Yes, that figure eight is the mathematical equivalent to infinity. Normally, I might call GameSpot out for early conjecture, but, all things considered, I'm inclined to think they got it right this time. And I have to say...

I like the name. Infinity obviously suggests an infinite number of possibilities. The question now is, can Microsoft live up to such a name and the lofty expectations that come with it.

What do you think?

Comment below!!

As always, thanks for visiting GameJonez. Game On!!

Saturday, May 04, 2013

NO MORE CONSOLES AFTER THE PS4 AND XBOX720. Believe it!!

Posted by Tiberius Jonez
email tiberiusjonez@gmail.com



The following excerpt was taken from the final paragraph of a story I wrote in November 2007:
'My belief is that by 2010, Microsoft and Sony will own a roughly equal 35% share of the gaming market, with the Wii holding a solid 30% market share. My reasoning is pretty simple; different management philosophies will determine the outcome for everyone. The real showdown comes in 2011-2012 when the next "Next Generation" begins.'
 -Tiberius Jonez, Editor of GameJonez, Nov 5, 2007 


FIRST OF ALL, I LOVE GAMES!

It's no secret that I love gaming. It is my favorite source of entertainment. When done right, gaming has the potential to offer up an amalgam of experiences unlike any medium to come before it. What other form of art or entertainment can you think of that has the potential to deliver an "audience" all the feelings of having been entertained, inspired, moved, tested - not just mentally and physically, but morally and ethically and still leave room for the simple reward or pain of victory or defeat?

Videogames are also an incredibly flexible medium. These complex experiences can run their course in the span of a few minutes or be sustained over a period of days, weeks or even months, allowing for infinite creative possibilities. What other medium can do all this? I challenge you to name one, because I can't.

I think there are two things that fundamentally distinguish videogames from other forms of entertainment. For one, videogames are possibly the only medium of entertainment where the audience is an active participant in the entertaining without ever having complete control over the outcome. And secondly, no other medium stimulates more senses. At any given moment, a good game may be simultaneously stimulating your eyes, ears, sense of touch, cognitive and problem solving abilities, emotional core and even your psyche. With all that going on, I
don't know how many neurons must be firing simultaneously in your brain, but I imagine a cat scan would look like a Kansas thunderstorm. To be sure, games today can be incredibly engrossing, but the medium does have it's fair share of problems, and they begin with...

MONEY, MONEY, MONEY, MUHHH-NEEE!!

It's true, the experiences videogames can give us are far richer in many ways than anything else out there. Unfortunately, I see several forces conspiring together to create an environment where we, as gamers, may have to be far richer to continue playing them.

I believe the gaming industry is at a crossroads of economics and content. To understand what I'm talking about, you have to first understand just how expensive it is to make games these days and how these guys make any money at all. So, let's take a look at a current example.

Activision's highly anticipated game "Destiny" from Halo developer Bungie, will be released on current and next generation consoles and will feature continuing development that will span ten years. To say the least, Destiny is an extremely ambitious project. The estimated budget for the initial release is slated at $140 Million, and that's assuming no significant delays or problems along the way.  According to the contract between Activision and Bungie, Destiny will be released first on the Xbox 360/720, and then the PS3/4 and, because of it's colossal budget,  it will need to sell approximately 5 million copies just to break even. By comparison, within 24 hours of being released, Activision's last Call of Duty: Modern Warfare game sold approximately 6.5 Million copies in the U.S. and U.K. alone. So, while I suppose it's technically possible Destiny could sell that many copies, you have to bear in mind that COD is a very well established franchise with a huge, loyal and rabid fan-base, and while Bungie does have an established track record of success, that was with the Halo franchise as an Xbox exclusive; Destiny is a brand new intellectual property (IP) being released on both platforms with no established track record on which to base expectations.

What do all those numbers really mean? They mean that at some point developers have to pass the cost of development onto consumers to maintain their bottom lines and deliver profits to their investors. Games now cost $60 and the pricing structure of the next generation of games has yet to be revealed. With development teams for next gen games numbering as many as 500 people, some analysts are predicting prices as high as $100 for a single game! If history is any indication, I seriously doubt prices will skyrocket that dramatically, but $70 seems like a reasonable expectation. Here's why...

SOME PERSPECTIVE

Historically, videogames have actually been quite inflation-resistant when compared to other forms of entertainment, especially movies. In 1981 I paid $2.00 to see a matinee showing of Raiders of the Lost Ark the weekend it opened. That same week I used my hard-earned snow-shoveling cash to buy Atari Football (screenshot below - yeah, that was actually supposed to represent football - and we were happy to have it!!) for the Atari 2600...which, as you can plainly see is one of the most simplistic games you could ever imagine by today's standards, and I paid $50 for it back then. Thirty years later a movie ticket in my area costs between $12 to $24 depending on whether you want to see a standard flick, a 3-d show or an IMAX film. So, let's just take the standard flick; an increase from $2.00 to $12.00 is an increase of 600%. Video games going from $50 to $60 in the same period represents an increase of only 20%...an absolute bargain by comparison...even more so when you compare today's Madden NFL to that Atari atrocity. I think I'm more than getting my extra ten bucks worth of product. If you had to pay $60 to see a movie, I suspect you'd skip the opening of the next big summer blockbuster. So, how have game prices stayed relatively flat for so long?

Atari Football - $50 in 1981
VS
Madden NFL 2013 - $60 in 2013

In the early 80's video games were exploding! They were new, exciting and represented the cutting edge of technology, but in many cases, the games were being churned out by "teams" of one or two people in a day or two for a few hundred dollars. So, as you can imagine, Atari and other developers had ridiculously HUGE profit margins built into that $50 price point, and people were happy to pay it. Nowadays, developers are lucky if they make $2 or $3 per game after all their costs are factored in, and game retailers typically pay $55 for a new game that they sell for $60. Their real profits come from used game sales. Game developers also don't have the luxury of the additional revenue streams afforded movie studios, like DVD sales, cable and public T.V. royalties, On Demand access fees and more.

And so we come closer to the point of this whole story...what all this means to console makers, specifically Sony and Microsoft, and why I believe this is the last generation of consoles we'll ever see released. To understand where we're going you have to first understand where we are and what these two mammoth companies are trying to accomplish.

WHERE DO THE PLAYERS STAND TODAY?

In 2012, Microsoft reported earnings down $1.1 Billion from the same period a year earlier, but I wouldn't feel too sorry for them, they still reported a net profit of roughly $6.4 Billion, and with an interesting footnote; the Xbox division reported $98 Million spent for research and development in the final fiscal quarter alone, a clear indication that they've been seriously ramping up R&D efforts for the Xbox720. As creators of Windows, the most popular computer operating system in the world, Microsoft could literally afford to view their Xbox division as a hobby if they wished. They could pull up stakes today, leave the gaming space entirely and hardly feel it; but don't worry if you're an Xbox fan, Microsoft isn't going anywhere. Their plan, spelled out by Bill Gate's with the release of the original Xbox, was then and remains today to gradually transition the Xbox hardware from a gaming-only console to a unified "set-top box" that would eventually allow consumers to control everything from the lights and thermostats in their homes, to their use of the internet and all other audio/visual entertainment with one device, using only their voice as a controller; and Forbes agrees with me. Solid evidence that their plan is working came recently when Xbox live reported that 2012 marked the first year that the majority of people connecting to Xbox Live were doing so to take advantage of services other than online gaming.

Sony entered the current generation of consoles as the undisputed industry leader. It was estimated during the last generation of consoles that Sony's Playstation 2 controlled an overwhelming 70% of the global console market. However, due to a series of strategic missteps with the PS3 and perhaps by underestimating their competition, as I predicted in 2007, their lead has all but vanished and, depending on whose numbers you trust, they now find themselves in a virtual deadlock with Microsoft with each company now controlling roughly 35 to 40% of the market with a floundering Nintendo claiming the rest with the Wii and the thus-far disappointing Wii-U.

In stark contrast to Microsoft's $6.4 Billion profit of a year ago, Sony reported a staggering LOSS of $4.8 Billion in the Sony Computer Entertainment division alone...that's a swing of more than $10 Billion between the two companies!! Sony's electronics division hasn't been helping much by barely breaking even for the past 5 years. Sony as a whole reported a net profit of $404 Million.

Bloomberg recently reported Kazuo Harai, Sony's new Chairman, wants to generate 70 percent of revenue and 85 percent of operating profit in Sony's electronics from games, digital media, and mobile devices by March 2015. To say Sony has a lot riding on the PS4's success would be a massive understatement. While they are down-playing it publicly, internally, Sony execs know this might be their last best chance to make SCE profitable once again. The very survival of Sony Computer Entertainment could be on the line and the changes they've made in their approach so far with the PS4's release vs the PS3's release reflect a keen awareness of their precarious situation. From firing Ken Kutaragi, to announcing their console first, to embracing a more developer friendly x86 architecture with the new hardware, Sony is attempting to correct past mistakes in hopes of, at the very least, maintaining a level playing field between themselves and Microsoft.

FINDING AN IDENTITY

The biggest problem for Sony in the current generation is the fact that even though they entered the race a full year after Microsoft, they really did nothing to differentiate the PS3 from the Xbox360. As Forbes points out in their article, aside from a very few exclusive titles for both consoles, and the obvious differences between Xbox Live and PSN, for most consumers, both consoles occupied the exact same space and it was really just "a choice between blue pokemon and red pokemon."

But now I see a clear line being drawn in the sand between Microsoft and Sony that could actually end up benefiting everyone.

Sony made it clear with their "reveal" of the PS4 in February that they are getting back to focusing on games, games, games and eschewing many of the other entertainment features offered by the PS3 and Xbox 360. At the same time, recent rumors out of Redmond, Washington suggest that Microsoft has every intention of offering a powerful gaming system while continuing to advance their agenda of an all-purpose entertainment one-stop-shop of services that could eventually end the need for cable.

I see this as a possible win-win. If Sony is successful in reestablishing themselves as the best games maker on the planet, then they have a legitimate opportunity to regain their supremacy in that space.

If Microsoft were to successfully introduce a more inexpensive console that further expands their variety of entertainment offerings, while perfecting voice control and still being a good, if slightly inferior gaming machine to the PS4, they could fill a niche wholly separate from Sony. The end result could be a situation where consumers are adequately motivated to own both systems in order to have access to all the combined features on offer.

The danger for Sony lies in Microsoft's advantage of knowing what the PS4 is going to offer processor specs-wise and possibly being able to simply one-up them. If they can do that then the PS4 would be in trouble indeed. And if the new Xbox's gaming specs are only slightly inferior to the PS4 but they offer a bunch of other features that consumers want, that could also bode poorly for Sony as consumers will often sacrifice a small difference in graphics if their is a perceived value-gain with everything else included in the package.

THE END IS NEAR...NO MORE CONSOLES AND NO MORE GAMESTOP




And finally, regardless of what happens in the battle to dominate this upcoming generation, I believe this will be the last generation of true consoles for several reasons, and I'm not alone. One of the "experts" that agrees with me is well-known Wedbush Securities Industry Analyst Michael Pachter, who also  predicted in 2009 that there would be no more consoles after the Xbox360 and PS3. I didn't agree with that assessment at the time. I had already predicted in 2007 we would have a PS4 and Xbox 720 and that by the time they rolled out, Microsoft and Sony would be virtually tied in market share; and apparently I was clairvoyant that day, because I was pretty much spot on with one exception; I thought the next gen would arrive a year sooner, in 2012.

Now it's 2013 and the environment surrounding the industry has significantly changed, thanks in large part to the one thing that is always toughest to predict; the astounding rate of technological advancement. With the continuing improvement of streaming technology, cloud processing and Nvidia's GPU processor technology, six years from now it will literally be possible that the only hardware Sony and Microsoft will need to offer consumers is a controller(s) that will plug directly into your TV. The "consoles" will exist completely in the cloud.

One immediate result of this transition will be the almost-overnight destruction of Gamestop and all other brick and mortar videogame retailers, and trust me, nothing else would make Sony and Microsoft happier. Whether they admit it publicly or not, stopping the sale of used games and ending piracy stand at the very top of both company's long-term agendas. Streaming everything solves both of those problems instantly while greatly reducing publishing costs.

No more consoles means no need to manufacture hardware for every consumer. Factor in the elimination of all the costs associated with production, servicing, warranties, packaging, shipping, energy and real estate costs as well as all the salaries and benefits of the employees required to run all those operations; in the final analysis, I just can't see how both companies can avoid coming to any other conclusion...producing more consoles simply no longer makes good business sense.

So, enjoy your physical discs while you can because I don't think you will see them anymore after this generation.

I would love to hear your comments below.

As always, thanks for visiting GameJonez. Game on!!