Since the writing of the Electronic Arts Case the Sony Playstation 3 and the Nintendo Wii have been released and both have online gaming capabilities. What’s your assessment of the current online gaming market?
The internet has become an important component to the gaming market. Nintendo and Sony have both joined Microsoft in offering an online component to their gaming consoles. The Nintendo wii allows users to connect the console up to a wired or wireless internet connection, enabling web-surfing, news-browsing, game downloading, wii-channel downloading, and multi-player interactive play with friends and family. There are a multitude of free internet services available, including playing games online with other players. For downloading games, Wii points are used and may be purchased through the Wii store.
Sony has countered by offering its 100% free PlayStation®Network. Users may sign up for free accounts which, give them access to free multiplayer online gaming, in-game matchmaking, text and chat with friends, viewing friends online, voice-chat, video-chat with up to 6 people, previewing upcoming games, purchasing games, watching HD movies and game trailers, renting or purchasing downloadable movies and TV shows in standard or HD quality.
Therefore, both Nintendo and Sony have integrated free online gaming (and much more into their consoles) in an attempt to offer customers more entertainment value while fiercely competing with Microsoft’s Xbox Live service. In addition, Nintendo and Sony have made efforts to distinguish their systems by making them standalone multi-media systems with internet offerings. Therefore, in order to compete in the game console market, online gaming is a must. Additionally, it is obvious that in order to be a competitor in the video game market, video games creators must create games for online play and that are compatible with each of these gaming consoles.
From a business standpoint, there is potential for achieving additional revenues through movie rentals, movie sales, game purchases, etc. The question is whether these companies are able to generate more revenue, by offering online gaming, than the costs associated with providing the service.
Sony has countered by offering its 100% free PlayStation®Network. Users may sign up for free accounts which, give them access to free multiplayer online gaming, in-game matchmaking, text and chat with friends, viewing friends online, voice-chat, video-chat with up to 6 people, previewing upcoming games, purchasing games, watching HD movies and game trailers, renting or purchasing downloadable movies and TV shows in standard or HD quality.
Therefore, both Nintendo and Sony have integrated free online gaming (and much more into their consoles) in an attempt to offer customers more entertainment value while fiercely competing with Microsoft’s Xbox Live service. In addition, Nintendo and Sony have made efforts to distinguish their systems by making them standalone multi-media systems with internet offerings. Therefore, in order to compete in the game console market, online gaming is a must. Additionally, it is obvious that in order to be a competitor in the video game market, video games creators must create games for online play and that are compatible with each of these gaming consoles.
From a business standpoint, there is potential for achieving additional revenues through movie rentals, movie sales, game purchases, etc. The question is whether these companies are able to generate more revenue, by offering online gaming, than the costs associated with providing the service.
Great Analysis Mark, I totally agree with you. Game developers must create games for online play that are compatible with all gaming consoles. I am recent owner of Wii and I have downloaded online games through Wii points. I love playing those old games.
ReplyDeleteFrom reading other classmate postings, it seems that Microsoft is leading the online gaming market. This surprises me since Sony & Wii offer free online gaming. I wonder what it is about Microsoft's offerings that attracts a larger market.
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