As we move through the beginning of the 21st century,
the average age of PC games players will stay approximately
at present levels, while the average ages of video
console users will likely fall into the teen levels.
The pricing of the new generation of games consoles
has fallen to a more mass-market acceptable price
(about the same point where the previous generation
of 16-bit consoles peaked). Therefore, video game
consoles are attainable purchases for teenagers and
feasible gift purchases for parents. 
Storage Media
The days of the classic NES and Sega Genesis systems
(through the N64) featured silicon-filled ROM cartridges,
the type that you had to take out and blow across
a few times to get to work after a while! However,
standard software storage media in the current generation
of video consoles features much more cost-effective
compact disc technology (and for N64, cartridge technology
with greater storage capacities), which normally store
around 600 MB of data on one disc and up to 300 times
that amount if compressed.
Sony's Playstation2 uses a DVD
drive
|
The next trend will definitely
be the switch from CD-ROM to DVD-ROM, which
can store many times the capacity of a CD on
the same size disc. Sega uses a different kind
of storage media, GD-ROM, with is as cheap as
producing CDs but stores around 1 GB of data.
The Playstation 2 and Nintendo's next machine
will be using the DVD format as storage. |
Software
The storage capacity of CD-ROM technology has made
video, CD quality sound and pre-rendered computer
images and animations possible. Software production
costs have risen as developers try to outperform competitors
with cinematic plot development and movie-intensive
games that can demand up to 6 CDs to store. Games
with little or no movie content can take up less than
one-tenth of a regular CD. The emphasis has also shifted
from 2D into 3D graphics, and many 3D accelerator
chips have been installed into console hardware. At
the same time, the number of popular software genres
has gradually narrowed, the most popular being competitive
sports (i.e. EA Sports), violent fighting (i.e. Virtua
Fighter, Street Fighter), and shooting games.
Dead or Alive 2, the latest 3D fighting
game for the Dreamcast
Distribution
In the past few years, there has been a dramatic
surge in the number of CD-ROM based software titles
that have been released or are in development. This
can largely be attributed to 1) the growth of console
hardware capable of playing CDs, 2) the founding of
new software companies keen to enter a proven and
growing market, and 3) established producers increasing
output to maintain market share. Consequently, only
a small section of software titles will be profitable:
not only are chances for spectacular success limited,
but the danger of spectacular failure will be increasingly
high.
Because shelf space is limited, a distribution policy
that guarantees the opportunity to secure shelf space
is becoming increasingly crucial. Although the decreasing
production costs of software has resulted in the emergence
of discount stores, such as Walmart, as a major player
in distribution, perhaps there will now be an shift
towards the Internet.
The Rise of the Internet
The prevalence and availability of the Internet has
fostered a range of new services and opened up many
distribution opportunities. For example, many online
games magazines and sites can disseminate up-to-the-minute
news to the millions of visitors that it receives
per week. Moreover, PC software developers and even
video game developers can use the Internet as a testing
ground where it can release demos while still in the
development stages and receive feedback that can improve
the final products. Also, the Internet also gives
software developers and publishers an avenue through
which to offer more efficient technical support.
Sega has recently announced the launch of a new company,
Sega.com, in acknowledgement of the critical role
the Internet will play in the gaming market. Sega.com
is an ISP optimized for network gaming; specifically,
the online multiplayer experience that Sega promised
with the Dreamcast.
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Phantasy Star Online
is an upcoming Dreamcast game by Sega that will be
the first online, multiplayer console Role Playing
Game playable by Dreamcast users all over the world.
Most importantly, the Internet as a means of sale
and distribution cannot be underestimated, as many
publishers and even developers have tried to sell
their products on their web sites. In this way, many
software developers and publishers can eliminate the
cost of the middleman (the retailer and/or distributor)
and can market directly to the final consumer through
the Internet which is cost-effective, saves considerable
time, and may allow for just-in-time manufacturing.
However, one must approach these new possibilities
with caution, as publishers with existing business
relationships with distributors and retailers should
not risk undercutting the street prices.
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