The Denver Post

Is the end of the gaming console near?

- By Hayley Tsukayama

The measuring stick for success between the big three gaming companies of Sony, Microsoft and Nintendo has long been a question of how many consoles they’ve sold. But all three have had banner quarters in which they largely highlighte­d software rather than hardware sales, underscori­ng a shifting relationsh­ip between the games and the boxes on which we play them.

This change reflects a broader conversati­on in the industry about the future or even death of the console as we know it — away from the powerful box in our living room toward a more mobile world where even technologi­cally demanding games can be played on any screen that has an Internet connection.

Recent games such as Epic’s Fortnite, which has taken the world by storm, show that a console isn’t necessary for even a fastpaced multiplaye­r game. Nintendo is launching its first subscripti­on game service in late September. And the chief executive of game publisher Ubisoft said in an interview earlier this year that he believes the next generation of consoles will be our last, sparking new discussion about the death of the console.

“There will be one more console generation and after that we will be streaming — all of us,” Yves Guillemot told Variety.

“Being able to play content anywhere would be huge,” said Doug Creutz, media analyst at Rogers and Cowan. With the technology to beam consolequa­lity games to any device, he said, consumers wouldn’t have to spend the money for a $600 or $800 box, and developers wouldn’t be constraine­d by the processors and chips that fit in a console.

Ubisoft’s Chris Early, vice president of partnershi­ps and revenue, said that streaming’s appeal for major publishers such as his is that it makes it easier for even more people to play games.

“Gaming has become increasing­ly a part of mainstream life for everybody,” he said. “When we think about streaming and cloud computing the key advantages is more and more people can play.”

Microsoft in July reported that gaming revenue hit $10 billion for the first time this past quarter, bolstered by subscripti­on and software sales. Nintendo reported its profits were up, thanks to interest in games for its portable Switch console. Sony, the world leader for consoles, also reported that Playstatio­n revenue drove the company’s overall revenue to $17.9 billion, and projected software sales will help the unit rise 15 percent next quarter.

Actual console hardware is also starting to shift toward something more lightweigh­t. Nintendo’s popular Switch proves that our traditiona­l idea of the console doesn’t have to be tethered to the living room. It’s possible we’ll see more focus on powerful portables, analysts said. Sony’s new Playstatio­n head Tsuyoshi “John” Kodera told reporters in May that his company, too, might consider something more mobile. There are also rumors of a new Microsoft console that can still sit in the living room and pull some of the processing power, but doesn’t have the bulk or full limitation­s of a box, according to tech news site Thurrott.com.

But for real revolution — and the true death of the console — many more things have to change than just the technology of what’s sitting in your living room. While Internet networks have come a long way, much of the country is still limited by the speed of their wired and cellular networks, said games analyst Mat Piscatella of NPD Group.

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