Cosmic, why do you think consoles are a static/decaying market, when hardware sales have been great and digital sales can account for up to 56% of a company's total sales in a given quarter? (Ubisoft Q1 2015)
I'm just curious what you're seeing and if you would share that.
Zhuge has done an excellent job compiling hardware sales over time. While the Core market has indeed remained incredibly loyal to the traditional console model, the mass market has not.
In conjunction with this, you have a rapidly shrinking base of developers and publishers which are producing fewer and fewer packaged titles every year. Yes, many digital titles are being made, and digital is accounting for a greater share of overall software sales. However, the combination of a far smaller average selling price of these digital titles (driven mainly be promotion and/or PS+/GwG offerings) and an increasing tie ratio that cannot keep pace with this downward momentum in price has left a revenue gap.
Combine this with more costly development with a higher risk profile of winners and losers in the software market, and all of a sudden making games for the Consoles becomes far too risky for many investors.
This will result in the trend of fewer developers, publishers and then titles on traditional Console platforms continuing. There's really no stopping this at the moment.
Of course, this will result in even further homogenization of software offerings, catering more to a shrinking niche of core market buyers. And, at some point, the Consoles will not be able to supply enough of a variety in software offerings to not only not drive mass market adoption, but limit Core adoption as well. (Perhaps not this generation, which has an established base of demand, but one that will clearly be smaller than the last couple generations, particularly with the demise of the dedicated handheld market).
One way to offset this is to remove hurdles for mass consumers. Lower the entry price, make platforms more open, attempt to lower development cost and risk by increasing the potential audience and finding development efficiencies.
The funny part is, none of these are bad things. But the market must evolve. There's not enough core market to keep things going as they are with the increase in costs and risk. Lower the entry price for people, lower prices overall, make acquiring great content more accessible and everyone benefits.
I could be wrong.
I think it's more the poorly written article than anything.
Perhaps if it was better worded I'd take it more seriously.
Well sure, the article's pretty dumb.