Sony and Microsoft may be insistent that they have no plans to exhibit their next generation consoles at this year’s E3 convention, but should we believe them? Maybe, maybe not; in an era when consoles are in danger of falling by the wayside thanks to the development of multimedia television sets, it’s understandable that they should want to keep their developments to themselves. On the other hand, Nintendo is getting ready to release the Wii U later this year. The Wii U will be more powerful than the Xbox 360 and the PlayStation 3, so it’s difficult to believe that Sony and Microsoft will just sit back and watch. Instead it seems more than likely they will want to dive in and steal the scene by giving us a taste of what’s to come.
The main reason the console race is picking up pace, though, isn’t Nintendo’s comeback, it’s actually what’s been going on with televisions. Digital televisions are becoming increasingly capable of multimedia functions. Not only can people download movies and films on their digital TVs, but they can also download and play music on them as well—and games. True, not the kinds of magnificent games we see on consoles, but games nonetheless, and it’s only a matter of time before those games become very sophisticated. With the television set increasingly becoming the center of household entertainment, console developers are thrown into an interesting predicament. They’re going to have to offer everything that digital TVs offer in order to keep up and keep from being overrun by television sets in the near future.
Microsoft and Sony have both alluded to plans to do just that. Indeed, they will probably be marketing their next generation consoles differently from previous models. They will likely be calling them something along the lines of “entertainment centers” instead of just “gaming platforms.” While games will still be their central focus, there will be an expanding focus on other multimedia functions, and also an expanding focus on a wider range of users. They will be working harder to appeal to family demographics and target all age groups.
Why is this a predicament? In the past, gaming consoles were simple. When a customer bought a gaming console, that customer knew what the device was capable of and what use it was intended for. Installation was simple as well. Indeed, as David Perry, head of cloud gaming company Gaikai explains, “For me, the definition of a console is a gaming device for the mass market. They plug in a cartridge, they flick a switch and a game appears on the screen.”
Of course, this definition is already changing—which may make marketing easier in the future, particularly if Microsoft and Sony take their time. Microsoft’s new Kinect feature, for example, which is already in use for the Xbox 360, has taken the Xbox to a new level and offered all sorts of innovative functionality which goes far beyond gaming. As customers get to know the new evolution of the Xbox through the 360 upgrades, they are more likely to understand what is being marketed to them when Microsoft does finally decide to release the Xbox 720. Similarly, Sony may do well to slowly introduce additional functionality into the PlayStation 3—and then unveil the PlayStation 4.
So perhaps that’s one of the reasons that Microsoft and Sony seem to be holding back. Even though the console race is heating up, it may be to their strategic advantage to take a little extra time getting people used to the idea that a gaming console can be more than just a gaming console.