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Over the past few years we've been hearing two loud trends in the video game industry. 1. Sales/Revenue is going up and surpassing the hollywood box office. 2. Companies are going broke, (hundreds of examples) being swallowed, (EA are hungry) laying off employees, (Midway is the most recent example) reporting losses (Nintendo) etc. etc.
This is simple Micro Economic's really. It's called long-run equalibruim of a monopolistic competitive market. Basically it means profits are decresing for each individual company, but overall the industry is growing. This is because there are many entry-level companies absorbing the profits that were once shared by less companies. this trend will continue until one of the following occurs:
1: Profits drop totally and no company reports any profit over along term period (fiscal year) thus making companies drop out of the industry, which creates more profits for the remaining companies to share.
Or
2: Innovation of the current product re-vitalizes the market for a few specific companies. This draws more profit to those companies and takes it away from other causing same businesses to drop out of the market or merge with existing companies.
and then the process restarts. Rinse Lather Repeat.
On another note:
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NES = brings arcade level games into the home.
SNES = refinement of 2d games.
N64 = brings games into 3d.
GC = refinement of 3d games.
N5 =
, brings game control into 3d?
If you follow the current trend of major consoles, this is bound to happen. It is an innovation that would seriously alter gameplay as we know it and open up a whole new range of ideas. also it would be the introduction into possibly next-gen VR. Of all the possibilities, this seems the most groundbreaking. weather or not it is true (or even possible) is another story.