Beginning of the End for Video Game Consoles?

This week Sony and Microsoft are launching their next-generation consoles in the form of the PlayStation 5 and Xbox Series X. It’s been 7 years since the last major upgrade, and this one is shaking things up with serious gamers. Some of the new technologies include: ray tracing, 3-D audio, ultra-fast frame rates, and a controller that incorporates vibration-based haptic feedback.

At the same time, some industry analysts are wondering if this is the beginning of the end for consoles with the rise of cloud video gaming services as the next big thing. Google’s Stadia (“no console, no download”), Amazon’s Luna, Apple’s Arcade and Facebook Gaming are all vying to be the future of video gaming.

To keep things in perspective, the video game industry is three times as big as the Hollywood movie industry. Yes, that’s right…video games generate three times the revenue as Hollywood blockbusters…and that doesn’t even take into account the hit that movies theaters have taken with the pandemic. But even with success measured on this level, the gaming industry needs to be nimble and quick to respond to consumer demand. Whoever comes up with the next big development in video gaming will be richly rewarded.

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