For more than two decades, PlayStation has been a major player in the console department of gaming. Currently, going through the fifth iteration of the console, PlayStation is expected to dominate the market in the future as well. However, according to the former CEO of Sony Interactive Entertainment America, console gaming is going to run into major trouble sooner or later.
It’s no secret that console gaming falls behind its PC counterpart by a distance, and despite being a lucrative idea for gamers, many don’t buy consoles. Hence, the cost to install the latest hardware in consoles keeps rising, whereas the market for it doesn’t really rise at the same pace.
Console Gaming Is Not a Sutatianable Market For Companies, Says Former PlayStation Executive
In an open Q&A at IGN Live 2024, when asked if “are video game consoles in trouble,” Shawn Layden had a few candid words to share. According to him, console gaming is not necessarily in trouble, but this isn’t a new revelation.
We’ve managed to do a lot over time, and during the pandemic, revenues went up 20-25%, but it was still just getting more money from the same people. It wasn’t necessarily bringing new people into the console gaming world.
Despite updating the consoles with new-gen technology regularly, its cost-to-sell ratio doesn’t really add up to being a successful business.
So I think that’s the existential threat to gaming right now: How do you break out of that glass ceiling?
As time progresses and new games using the latest technologies hit the market, the consoles need to be updated regularly to keep up. Hence, you see both PlayStation and Xbox keep coming up with new models just like many other consoles.
However, in the long run, the latest hardware keeps getting costlier, but the player base that buys the console remains the same.
What’s Next For Consoles?
It’s not all doom and gloom when it comes to console gaming. Despite Shawn Layden’s addressing that there is an existential threat to gaming the market is still thriving. There are new consoles released regularly, and even handheld consoles are matching what a PC can provide.
While Playstation is arguably the frontrunner along with Xbox, Nintendo with their Switch and Steam Deck are also available for gamers to enjoy. That said, consoles are usually more expensive than PCs for the service they provide.
Cloud gaming is also becoming mainstream, with Microsoft and Sony actively trying to innovate new technologies. This could also help solve the issue of the high costs associated with manufacturing millions of consoles by centralizing them through cloud gaming.
What do you think is the future of console gaming? Do you believe cloud games will take over consoles? Let us know in the comments below.
