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Wynands: "I think 1 or more of the big 3 will drop out of the console realm"

Many here remember Mario Wynands who's a dev at Sidhe/Pik-Pok that recently talked about Wii U projects being cancelled and how it is in serious trouble here on GAF.

Apparently NowGamer conducted a follow up interview with him for even more detail on his comments:

One of the big three next-gen consoles from Microsoft, Sony or Nintendo will drop out of the console race in the coming years, according to one publishing head. Mario Wynands sparked debate on NeoGaf when he posted about Wii U, stating the console is in 'serious trouble' and next-gen will 'fail'.

NowGamer contacted Wynands, a Sidhe dev who is now the managing director of games publishing company PikPok, for an exclusive follow-up to his comments. Now, Wynands says one of the big three consoles will drop out of the race, like Sega with the Dreamcast.

He said: "In my opinion, the market is now unsustainable for 3 dedicated game consoles, much less the myriad of new players jumping in. Indeed, it might not be sustainable for any dedicated consoles.

"The environment is hostile enough to the traditional console that I think one or more of the big 3 will drop out completely, but I’m expecting all 3 to make losses without radical change to their business models (hence my calls for revamping of their digital offerings).

"This new generation is arriving with all the challenges of the last generation unresolved in terms of low margins on hardware, high development budgets, limited shelf space, used commercial game sales, piracy etc.

"On top of that they arrive facing increased competition for consumer attention via smartphones, tablets, and a resurgence in PC gaming. "The retail infrastructure is collapsing as revenues fall and retail chains supporting games have been shutting their doors. Consumer expectations of quality continue to rise, and there is downward pressure on pricing at the same time."


He said Microsoft and Sony face potentially 'insurmountable' challenges with Xbox 720 and PS4 and that they could be usurped by new platforms like iOS.

Source

Bring on the new industry crash?
 
Truth. I don't think console makers will drop out this gen or even next gen. But they may make large losses given the device landscape.
 
Well videogames are Nintendo's entire livelihood and their strategy is based on selling software on their own hardware, so that's not very likely.

Microsoft is one of the most valuable companies in the world and the games division actually makes a profit (mostly from XBL) so that's not likely either.

Sony...is a declining company which has had losses for years, but at the same time the gaming division is one of its only (occasionally) profitable divisions.

I can't see any of them happening, but if it had to be one of them, Sony.
 
"This new generation is arriving with all the challenges of the last generation unresolved in terms of low margins on hardware, high development budgets, limited shelf space, used commercial game sales, piracy etc.

These are not new problems to last generation. Maybe the high development budget part....maybe.
 

Burt

Member
Console gaming is dead.

Also, what'd he mean by "unsustainable for the myriad of new players jumping in"?
 

Kimawolf

Member
Yes, Sony or MS will if anyone. They have other divisions and a over all hierarchy to answer too after all. There will have to come a time when they are just like it's no longer worth it/lets focus on something else.

Nintendo can't and won't drop out console realm even if they have to add a HDMI port to their next handheld lol.
 

Plinko

Wildcard berths that can't beat teams without a winning record should have homefield advantage
I'm thinking Nintendo. It's what all of the western devs/publishers want anyway.

The day Nintendo stops existing is the first day they'll stop putting out hardware.
 

Effect

Member
It might be hard and very slow but Nintendo has enough IPs and characters that they can stick it out until the end. Not to mention their warchest.

Sony on the other hand is another story. When I say Sony I mean Sony as a whole. Though we could see Microsoft just expand behind gaming with the Xbox division and drop out of it by choice for things that are even more profitable for them.
 
The traditional hardware race is over. This generation will not be about how many raw units will be sold but instead how many customers can be retained via services.
 
These are not new problems to last generation. Maybe the high development budget part....maybe.

High development budgets affect everything though. It's why publishers are freaking out so much about used game sales. Used games have always been around, but now that major publishers are squeezed for profits, they're suddenly a crime.
 

kuroshiki

Member
Well videogames are Nintendo's entire livelihood and their strategy is based on selling software on their own hardware, so that's not very likely.

Microsoft is one of the most valuable companies in the world and the games division actually makes a profit (mostly from XBL) so that's not likely either.

Sony...is a declining company which has had losses for years, but at the same time the gaming division is one of its only (occasionally) profitable divisions.

I can't see any of them happening, but if it had to be one of them, Sony.

Microsoft's entertainment division actually doesn't make money at all, if I understood correctly.

Microsoft is not in the position to make more sacrifices right now. They are in war against Google, Apple and losing BADLY on all fronts against them, except OS and office dominance.
 

Hero

Member
Seriously Mario? That's a fucking bold claim for a company your size.

Dat iOS money getting to your head.
 
The traditional hardware race is over. This generation will not be about how many raw units will be sold but instead how many customers can be retained via services.

Service Penetration so to say.

So I sell 50M consoles but I have 70% service penetration vs. I sell 75M consoles but I have 35% service penetration?
 

freddy

Banned
If anyone it would be Sony because Microsoft would never withdraw while Sony is still in the game. Nintendo makes profit for the most part.
 

daegan

Member
You know, I love good indie/mobile games, but I'm going to be pissed if that's all we have to play in 10-15 years.

That said, things like this feel silly. Players stayed in this industry losing money. All three platforms last gen made money in the end; I don't expect growth at all this coming gen but that's a far cry from having an unsustainable business as long as they can run it correctly. The margin of error is slight.
 
One or two of them will definitely drop out by the next gen (~7 years). Console gaming will probably always be around but the market won't be able to support 3 companies who are essentially offering the same thing.
 

HylianTom

Banned
Nintendo is probably the least likely to drop out, as they're the only player capable of sustaining themselves.
If they were to ever drop, it would be after a number of large disasters. Thankfully, they have a pretty conservative business model and a large sense of self-preservation.. something I really appreciate, as it ensures that we'll get to play new Mario/Zelda/etc games for years to come.

Gonna be a fascinating decade.. :)
 

v1oz

Member
Yeah, Nintendo is in it forever they'll grind it out until they can't anymore.
Nintendo can grind. If the worst comes to the worst, Nintendo still has their domestic market to sustain their console hardware. And they are not gambling with huge losses in their hardware like Sony and Microsoft are.
 

U2NUMB

Member
Nintendo wont.. it is all they do. Sony might due to health of the company and the only reason MS would is cause they are bored or just no longer see it as worth the money.

I however do not think it will happen this next gen.. perhaps depending on how the next 5 years go but it is certainly a ways off if it happens.
 

wrowa

Member
Lol. It mus be strange for Mario to see a thread about his words on GAF, considering that he's a frequent poster here. :)
 

kuroshiki

Member
Nintendo can grind. If the worst comes to the worst, Nintendo still has their domestic market to sustain their console hardware. And they are not gambling with huge losses in their hardware like Sony and Microsoft are.

As a consumer I like how Sony and Microsofts are losing their own money to give consumers kick ass hardware.
 

Taker666

Member
Seems unlikely. Although I won't be surprised if the next gen is slow to take off and causes a bunch more publishers/devs to go under.
 
Nope. Nintendo will stay alive because of first party, Sony will stay alive because of Europe, and MS will stay alive because of US.

This gen is the first gen we don't have a worldwide leader. It will be broken up into regions.
 

Kitoro

Member
I've been expecting Sony to burn out during the PS4 generation since 2008. Nintendo, on the other hand, can sustain systems on their own with minimal third party support.

Once Mario Kart, 3D Mario, Zelda, and Smash roll out, and after the Wii U becomes viewed as the mass market priced console compared to the $400+ competition, the Wii U will be selling quite well and it will be Sony and MS' generation to lose, and I think MS is a bit more nimble and wise than Sony is.
 

darkside31337

Tomodachi wa Mahou
Well I think hes wrong but if I had to bet on one leaving the console front it'd be Nintendo. Wii U is going to need a serious push. The successor to the 3DS will just have an HDMI port.

Honestly though its impossible to predict what will happen in the next 5 years.
 

freddy

Banned

farnham

Banned
Nintendo has no other business than making games

Asking them to leave is asking for liquidation of their company essentially
 

Tobor

Member
Nintendo has no other business than making games

Asking them to leave is asking for liquidation of their company essentially

They'd be an excellent third party. Divorce them from their subpar hardware and we could see some great games.
 

Azure J

Member
I already lived through SEGA, I'll be done completely if they're suggesting Nintendo. At the same time, Nintendo is scrappy as fuck with 0 of the management woes that plagued late SEGA. Sony's taken some beatings this gen, but a turnaround is possible just looking at the few facts we know of re: PS4. Short of any $599 debacles next week, I think they have a good shot at starting strong, but developing over time. Microsoft is Microsoft, they have the grunt and the green to steer through it all and they have their own devoted user base. The used games thing is a massive blemish though if it plays out.
 

Talon

Member
These are not new problems to last generation. Maybe the high development budget part....maybe.
These three are definitely more prevalent now:

Development budgets - Last gen was absurd at the high end with the middle being cut out compared to the PS2/GC/XBox generation.

Limited shelf space - This is a pro and a con. The shelf space metaphor works a bit different with online shopping becoming so prevalent in the second half of last generation. It may be easier to find a niche title, but you're also competing for attention. As a result, you've seen a race to the bottom in terms of pricing. See: all the 4Q Ubisoft games. AC has been down to $35 by Black Friday for the last three releases. New releases don't keep their prices as much.

Piracy - It's a hell of a lot easier now than it was in previous generations, if only because the Internet has matured significantly. XBMC wasn't particularly hard to install on an XBox, but any asshole can mod his console now - a far cry from the mod chip years.

Another factor to consider is that the barrier to PC gaming is going to be lowered considerably come Haswell in June.
 

HylianTom

Banned
They'd be an excellent third party. Divorce them from their subpar hardware and we could see some great games.
Hopefully, they'll keep true to their word (paraphrasing: "the day we stop making hardware is the day we stop making software") and they'll never do this.
 
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