Report: Era of Game Consoles Coming to an End

Over the last twelve years, various versions of the Xbox, Wii, and PlayStation have been the center of the gaming industry. However, according to a recent report the age of game consoles is coming to an end.

Piper Jaffray analysts Michael Olson and Andrew Connor report that upcoming consoles - the Nintendo Wii U, the Sony Orbis, and the Microsoft Xbox Durango - will not perform as well as their predecessors, the Wii, the PlayStation 3, and the Xbox 360. Analysts estimate that Nintendo will sell 35% less Wii Us than they did Wiis in 2006 – 2007, while sales for the upcoming Sony console will fall to 50%. The Microsoft Durango, sometimes called the Xbox 720, will fall to 55%.

Why the poor projections? Analysts point to the popularity of mobile and social games.

“We believe console gaming will continue to be a time-share donor to social networks, mobile games, and tablets,” Olson and Connor told Gamasutra. “We therefore favor companies with increasing exposure to social/mobile gaming.”

The recession has also hurt the sale of consoles, which is not surprising considering the devices can cost a few hundred dollars apiece.

So what’s next for the industry now that traditional gaming machines are falling out of favor? Will there be a universal device that gamers use or will smart phones, PCs, and handheld devices continue to fragment the industry? Only time will tell.

Digital Trends

Photo: morgueFile/taliesin

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Categories: Entertainment | Gadgets and Gizmos

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