Editorial - Console Wars : The Hollywood Gambit
Friday
It is no huge secret that Hollywood has had a huge influence on the video games industry. Whether it is licensing, voice acting, presentation, etc..., the game developers have always been trying to find ways to pull some of those "mainstream" Hollywood dollars their way. Sony's Playstation 2 raised the bar on this approach by including DVD playback on the system. This helped Sony sweeten the deal to convince buyers to choose their console, and Hollywood got some help in establishing a new better format. This push was definitely more helpful in Japan than stateside, however; the influence was still felt around the world. It looks like 2 of the "Big 3" are using this same tactic as we creep past the dawn of a new console generation. Again, this is really nothing new, but with some recent announcements it makes for some good discussion again.Sony and its plan have been pretty obvious since day one with the Playstation 3. They understand the aid they gave in the DVD push with Playstation 2,and somewhere along the line they remembered that they are an electronics company first and foremost. Sony's mind set this time has been, if we can help launch that format, why can't we help launch our own? They have made some big sacrifices in profit loss and initial production to include their cutting-edge Blu-Ray format with every Playstation 3 unit. Sony believes that Blu-Ray and the royalties it would received will easily cover these losses, and possibly give them the largest piece of the Hollywood pie that any game manufacturer has ever seen.
Micrsoft and its vision with Xbox 360 appeared to have a simpler approach with the recent launch of the Xbox Live Video Marketplace and talk of Live Anywhere. They looked to be content with collecting revenue just by offering TV shows and movies through their existing service. Some consumers, like myself, are hopeful this could be unified between Xbox Live and Live Anywhere so one purchase could be view at home or the office, console or computer. On the surface, it looks like easy money for Microsoft, and would not be a bad endgame for the Hollywood piece. Things have become more interesting since CES though. The showing of IPTV has created some intriguing possibilities in the hunt for Hollywood. The short version of IPTV is, for those unfamiliar, a subscription entertainment service that rivals or surpasses cable and/or satellite that is streamed to a PC, Xbox 360, or possibly a set top box. This opens the way for some new directions for Microsoft. The first move would should be not make a set top box but have the Xbox 360 be the set top box. They could use the cable model and could rent you a Xbox 360 to use with the service, use the satellite model and give you an Xbox 360 with a 1 to 2 year service agreement, or a combination of both. Ideas like these offer the potential for a revenue stream like nothing else in the game industry. IPTV could lead to the largest install base ever seen in the market, and no developer can ignore that.
As with any of the best laid plans of mice and men, neither of these approaches are without a couple of problems. Sony is banking quite a bit on Blu-Ray. Many people feel Blu-Ray was added to the Playstation 3 even if the gamers or developers did not need or want it. This has alienated some of the gaming community. The jump from DVD to Blu-Ray, or any HD format for that matter, is much more subtle than the jump from VHS to DVD. There just is not that much excitement this generation to switch formats as there was last generation. Lastly, the inclusion of Blu-Ray adds a notable increase to the cost of Sony's console, they could be out of the price range of the customers that made the so strong last time. Microsoft Has been trying for years to get into your living room with only moderate success. They have a better footing this time, but convincing people to get their TV from the Internet could be tricky. Right now, they are also tied to specific carriers to supply the IPTV service. They could price themselves out of the market they want by time you add up internet fees, carrier cost, and Xbox Live. Carrier coverage could also impact the the number of potential customer they would have for this. Microsoft will have to find a solution for this to truly have a chance with IPTV. No matter hows this pans out for both companies, it is a great time to be a gamer.
Christopher "Master SinWave" Lugo
HDGN Assistant Editor
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Labels: nintendo wii, Playstation 3, Xbox 360
posted by Master SinWave @ 1/19/2007 12:39:00 PM,
0 Comments:
The Authors
Brock Raybon - Wasted Rage
Brock is a business owner by day and avid gamer and blogger by night. He writes about console and pc gaming, hdtv and technology news. Definitely a "CONSOLE FANBOY" born with a 2600 joystick in his hand.
Chris Lugo - Master Sinwave
Chris works in customer services by day and moonlights as a hardcore techie by night. He started gaming as a young lad with his trusty Atari and now plays it all from console to hardcore pc games. HE GIVES CONSOLE AND PC GAMES A FAIR SHAKE.
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