Microsoft or Sony Dropping Out of the Hardware Business, Predicts Gaikai

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Microsoft or Sony Dropping Out of the Hardware Business, Predicts Gaikai

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Are Microsoft or Sony thinking of giving up on the next-gen console race?

They are, according to Cloud-based gaming company Gaikai.

"Not all of the current console makers will have one more generation. That will be the big news at E3," said Gaikai's chief product officer, Nanea Reeves, during an interview with IndustryGamers. With the Wii-U very much confirmed for release this year, that means either Microsoft or Sony would be calling it quits on console hardware production.

While this is likely just wishful thinking from a company with a stake in seeing the competition step down - Gaikai recently unveiled plans for a cloud-based gaming service intergrated into LG televisions - it has lead to some speculation that either Sony or Microsoft may be considering cloud-based successors to their current systems.

Considering the costs involved in developing new hardware, and the fact that only Nintendo traditionally makes a profit on hardware sales, it's only a matter of time before the big three embrace cloud-based gaming. But getting into the business now, while the technology is still very much in its infancy and only a fraction of gamers have internet speeds that could support it, would be somewhat premature.

Neither Sony nor Microsoft have announced successors to their current consoles as of yet.

Source: Industry Gamers

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Until the US or any other continent gets another huge infrastructure boom meaning updating every spec connection cable to every residential home you aren't going to see cloud based gaming be truly viable.

I can see them going for it in order to control their product more tightly(prevent piracy) and to force consumers into a subscription based model where consumers don't own the games but license them(IE Microsoft word).

But the bandwidth, connection speed, and the physical location of the servers that dispense the game aren't there yet to support a true international or even a national cloud based service. Nevermind ISP companies getting in the way and trying to make a buck off of said game company to stream the content.

Scare tactics. Microsoft will release an XBOX 720. Sony will release a PS4. And the world will keep turning.

If anyone is going to drop out of anything, I could definitely see the Vita being Sony's last attempt at a handheld console unless they make some major changes with pricing. It's not doing well in Japan at all and I don't predict that it'll break any sales records when it makes its way to the US.

As for the prediction that cloud gaming will take over, a lot of people still don't have fast enough or reliable enough internet for cloud gaming yet. I still think that's quite a way off from becoming the norm, and I don't really think it'd ever completely overtake either retail or digital distribution, at least any time soon. I could see cloud gaming existing as an alternative method for getting games, though, like how digital distribution is the current alternative to retail. For example, on PC, those who enjoy modding would probably never move over to cloud-based gaming and will stick to something like Steam or buying their games retail, but people with weaker computers that just want to play the game might like cloud-based gaming.

Neither Sony nor Microsoft have announced successors to their current consoles as of yet.

But they announced the announcement, didn't they?

That could kind of suck. Sure it would be nice to have only one console, but as soon as Sony or MS lose their main competitor they immediately turn into raging [email protected]#holes (even more so than now).

Not counting Nintendo here since they're in a different market.

I'd be astonished if either Sony or Microsoft weren't planning new consoles at the moment. Now the generation after might have some surprises, but that's ~10 years down the road. (And I actually wouldn't be surprised if Nintendo was the first to jump on this.)

But the new sony and MS consoles are part of the problem, the reason why those two wont be able to survive the next big turn in gaming.

nintendo is setting their own pace here, even after sony and MS claimed extended console life, nintendo is releasing a new console when the hell they feel like it, and for some reason, those two HD morons think this is going to threaten their markets (which means they arent as confident in the console as they should be) so they will rush to make new systems with no new features.

expect slightly better graphics, slightly more power, and integrated motion controls... they wont be raising any bars here.

I'm really sick of this whole "Cloud Gaming Revolution" stuff. I really don't see it's appeal at the current time. Wish companies would stop harping on about it like it's the second coming of christ and we are all ignorant pigs for not accepting it. :|

Cloud gaming isn't taking off though.... The global internet infrastructure and pricing is not yet at a place where cloud gaming is a viable alternative for the vast majority of gamers. Hell we have people bitching that just being hooked up to the internet to play a game is a deterrent for them buying, what's gonna happen when game sales and play goes 100% digitial?

It's certainly possible that one of them wont be ANNOUNCING a new console at E3, but I would be shocked beyond words if either one came out and said "Yeah we're going the way of Sega."

Jellly:
I'm really sick of this whole "Cloud Gaming Revolution" stuff. I really don't see it's appeal at the current time. Wish companies would stop harping on about it like it's the second coming of christ and we are all ignorant pigs for not accepting it. :|

Thank God, there's other people that so strongly oppose it.

Honestly, it just isn't possible at this time. I don't see how there could be a way around this. No significant group of people, at this moment, wants or even cares to have everything go digital.

This is nothing more than wishful thinking and scare tactics from a company that would benefit from this.

Wishful thinking from a company that's really starting to fucking piss me off.

Cloud gaming is an interesting concept, but that's all it is at the moment. To think that it's going to be cutting into the established console market any time soon is deranged at best.

EDIT:

Sylveria:

It's certainly possible that one of them wont be ANNOUNCING a new console at E3, but I would be shocked beyond words if either one came out and said "Yeah we're going the way of Sega."

You know what? I bet it's more likely that Sega will come out with a new console than for either Microsoft or Sony to drop out of the running.

I highly doubt this. Both of them are strong enough to produce a new console. Maybe after this generation we could see it, but as of now, all three from this gen are most likely going forward.

In other news zune says apple will drop from the mp3 market 8p

"Cloud-gaming: Taking control completely out of the consumer's hands, and turning everything into a service with which we can rate hike and gouge you with."

In practical terms: My internet is far too shit (compared to the average connection in Japan and Europe) to even begin to support cloud-gaming, let alone the whole country.
(And as I've recently discovered, my connection is firmly in the realm of AVERAGE, for home connections in Chicago. That's fucking scary.)

Besides, if existing "always-online DRM" systems are any indication, cloud-gaming will be worse for the consumer. Adding a required online component means services can black-out and/or get DDOS'd.
Say what you will about consoles, but you can't DDOS my PS2.

This article is silly at best, and just plain off base at worst. Just because Sony and Microsoft won't unveil a new system at the next E3 doesn't mean they're closing the doors. after all Xbox 360 came out almost a year before the PS3 or the Wii. And its not like they aren't making money. I'd even say the interviewer probably took Nanea's words out of context for shock value.

BUT, if I had to put money down I'd say Play Station is the most likely to go down. And here's why. They don't make money on their systems. They don't charge for the play station network. They get hacked way more then Xbox (and other then homebrew who even bothers hacking a Wii?) Microsoft will go another round because why the hell would you end Xbox LIVE? Its like raking leaves made of money. Its worth making another system just for the subscription renewals.

While cloud gaming sounds.....cool? I guess? I don't think we are anywhere near the audience, hardware, or payoff for that kind of system. But then again I have my comp hooked up to an LG TV so put a Microsoft controller in my hand i'll give it a whirl.

So then I guess these are just Lies.

believer258:

Jellly:
I'm really sick of this whole "Cloud Gaming Revolution" stuff. I really don't see it's appeal at the current time. Wish companies would stop harping on about it like it's the second coming of christ and we are all ignorant pigs for not accepting it. :|

Thank God, there's other people that so strongly oppose it.

Honestly, it just isn't possible at this time. I don't see how there could be a way around this. No significant group of people, at this moment, wants or even cares to have everything go digital.

This is nothing more than wishful thinking and scare tactics from a company that would benefit from this.

This. All over this.

Honestly, I'm a tree hugger and all, but...there's just something about buying a band new system with a game and then opening that case and looking at your mint-condition disc and then reading the booklet (For your first and last time) and then popping your disc in and playing. Or even taking your game to your friend's house!

Anyway, this just seems like either random speculation or wishful thinking. Or pure arrogance. I don't know. But I don't see why either Sony or Microsoft would give up. They make money despite its blunders (*coughSonycough*) and seeing how both companies work closely with new devices and technology, there's no reason for them to give up or be outdated or whatever.

As far as Cloud gaming, could we PLEASE just give it a fucking rest?! Honestly, why is everyone so eager to get there? It's not even possible yet, at least not in the level we expect it to. I love my consoles. I've never had any trouble taking care of my games or going to the store to buy them. I rarely play online or take advantage of my system's wi-fi at all. And even if I did, my internet is not as amazingly fast as it probably needs to be for this.

Give it a shot, developers, if you're so eager to get into this. But you'll soon realize why it isn't taking off yet. It's not exactly up to you guys how successful or not a system would be if you decide to go down that road. Just sayin'.

Wow, that is a bold statement. I love how people twist events to say what they want. They both said they believe in a 10 year console cycle. So, the lack of news of a new console fits right in with their stated plans, as it stands now.

That said, both companies suck really bad in the console arena. They both chose to make systems that were cutting edge at the time and too expensive, and then had to sell at a loss for years. But they are playing the long game. I have little love for either of these companies, but I'm just being realistic.

Also, cloud gaming? HAHA. There isn't enough broadband in the world for this to happen anytime soon. Current setups are pushing it to the limits. There would have to be a vast overhaul of communications infrastructure for that to succeed.

Edit: Or, massive leap in the capabilities of file compression, whichever comes first.

Yeah. Not seeing it. Especially not Sony, despite all the awful crap that happened to them last year. They have so many exclusive developers under contract. To not make another console would be to help their competition. And Microsoft is pushing the whole all-in-one entertainment center (of course, PCs do all of that stuff already...but oh well. It's working for them).

haha! Really? Ousted by cloud gaming? Surely, you jest.

That would be the end of my gaming career. With the ridiculous prices and limitations of internet in Canada, I don't feel like I want to be involved in that. I still have a NES etc. so I can continue to play many console based games in the future.

I'm more worried about finding a TV in the not too distant future that can accept the inputs for A/V. I've seen TVs that just have VGA and HDMI inputs.

Grey Carter:
Microsoft or Sony Dropping Out of the Hardware Business, Predicts Gaikai

Are Microsoft or Sony thinking of giving up on the next-gen console race?

They are according to Cloud-based gaming company Gaikai.

In related news, Coke is predicting the demise of the Pepsi corporation.

FoolKiller:

I'm more worried about finding a TV in the not too distant future that can accept the inputs for A/V. I've seen TVs that just have VGA and HDMI inputs.

i think there's adapters for those, it'd be pretty silly if there wasn't at this point

hcig:
But the new sony and MS consoles are part of the problem, the reason why those two wont be able to survive the next big turn in gaming.

nintendo is setting their own pace here, even after sony and MS claimed extended console life, nintendo is releasing a new console when the hell they feel like it, and for some reason, those two HD morons think this is going to threaten their markets (which means they arent as confident in the console as they should be) so they will rush to make new systems with no new features.

expect slightly better graphics, slightly more power, and integrated motion controls... they wont be raising any bars here.

No, Nintendo is releasing a new console because they have to. They don't have the sales to sit on their hands and do nothing. Wii sales have fallen through the basement. Cloud gaming is just starting.

Brian Prince, Microsoft's Chief Cloud Engineer has already stated twice that new console is going to embrace Cloud tech. It is not going to be the fully integrated system like Onlive, but will most likely be a hybrid. Sony has it own Cloud Firm, but more hushed-hushed about it. If you don't like Cloud, then your going to be sitting alone QQing playing your retro-titles until your end of days, or you can embrace it. Like David Perry from Gaikai says don't worry about the ISPs, it will be in their best interest to service the cloud.

Cloud bases gamign becoming the norm?

well fuck..no gaming in Australia them

Baldr:

hcig:
But the new sony and MS consoles are part of the problem, the reason why those two wont be able to survive the next big turn in gaming.

nintendo is setting their own pace here, even after sony and MS claimed extended console life, nintendo is releasing a new console when the hell they feel like it, and for some reason, those two HD morons think this is going to threaten their markets (which means they arent as confident in the console as they should be) so they will rush to make new systems with no new features.

expect slightly better graphics, slightly more power, and integrated motion controls... they wont be raising any bars here.

No, Nintendo is releasing a new console because they have to. They don't have the sales to sit on their hands and do nothing. Wii sales have fallen through the basement. Cloud gaming is just starting.

Brian Prince, Microsoft's Chief Cloud Engineer has already stated twice that new console is going to embrace Cloud tech. It is not going to be the fully integrated system like Onlive, but will most likely be a hybrid. Sony has it own Cloud Firm, but more hushed-hushed about it. If you don't like Cloud, then your going to be sitting alone QQing playing your retro-titles until your end of days, or you can embrace it. Like David Perry from Gaikai says don't worry about the ISPs, it will be in their best interest to service the cloud.

I dont think anything is 100% at thtis point

if what your saying is true then its not so much "embracing" as "forcing" like most technological advancments

plus the internet here at least just isnt fucking good enough...

"it will be in their best interest to service the cloud"

so I take it that you..for one..welcome your new cloud overlords?

Vault101:

Baldr:

hcig:
But the new sony and MS consoles are part of the problem, the reason why those two wont be able to survive the next big turn in gaming.

nintendo is setting their own pace here, even after sony and MS claimed extended console life, nintendo is releasing a new console when the hell they feel like it, and for some reason, those two HD morons think this is going to threaten their markets (which means they arent as confident in the console as they should be) so they will rush to make new systems with no new features.

expect slightly better graphics, slightly more power, and integrated motion controls... they wont be raising any bars here.

No, Nintendo is releasing a new console because they have to. They don't have the sales to sit on their hands and do nothing. Wii sales have fallen through the basement. Cloud gaming is just starting.

Brian Prince, Microsoft's Chief Cloud Engineer has already stated twice that new console is going to embrace Cloud tech. It is not going to be the fully integrated system like Onlive, but will most likely be a hybrid. Sony has it own Cloud Firm, but more hushed-hushed about it. If you don't like Cloud, then your going to be sitting alone QQing playing your retro-titles until your end of days, or you can embrace it. Like David Perry from Gaikai says don't worry about the ISPs, it will be in their best interest to service the cloud.

I dont think anything is 100% at thtis point

if what your saying is true then its not so much "embracing" as "forcing" like most technological advancments

plus the internet here at least just isnt fucking good enough...

"it will be in their best interest to service the cloud"

so I take it that you..for one..welcome your new cloud overlords?

I've even shaken their hands. Some of us posters here are not just Gamers, we actually work in the game industry. We are the "evil" you despise so much. Muhahahaha

The times, they are-a changin'.

Maybe. We shall see.

I, too, am getting a bit sick of hearing of the "cloud revolution".

It's really too early. And I'm one of those people who believe that Singularity will be here in my lifetime. Really, the XBOX 720 and PlayStation 4 will release just fine. If anything, I figure cloud gaming won't become the norm until 2030 or so. Right now, we are in an internet gaming revolution, but that revolution is Digital Distribution. Growing rapidly enough that is threatens traditional media.

And believe me, that's quite a revolution and a good one. And believe me, it will be around for a long time and will surely have to have conquered traditional media for several years before cloud gaming even stands a chance.

Luckily, again, in the meantime, we can look forward to the digital distribution revolution really taking hold and taking over. By 2025, I have to wonder if traditional media won't almost be completely phased out in everything. Not just video games, but for movies and shows and everything. People are already used to Streaming 1080p, so Blu-Rays are losing a lot of advantages in the market.

believer258:

Jellly:
I'm really sick of this whole "Cloud Gaming Revolution" stuff. I really don't see it's appeal at the current time. Wish companies would stop harping on about it like it's the second coming of christ and we are all ignorant pigs for not accepting it. :|

Thank God, there's other people that so strongly oppose it.

Honestly, it just isn't possible at this time. I don't see how there could be a way around this. No significant group of people, at this moment, wants or even cares to have everything go digital.

This is nothing more than wishful thinking and scare tactics from a company that would benefit from this.

I'm not really into the idea either. The idea of gaming becoming a service rather than a product is just going to be exploited as another way for publishers to continually take money from their customers. Plus as others have commented it's only viable if the infrastructure to deliver high-quality internet to all areas is there. And I'm getting tired of people talking using the phrase 'the cloud'.

emeraldrafael:
So then I guess these are just Lies.

They're rumours. Sony has flat out denied they're going to be showing a next-gen console at E3.

I hate business people and their absolute lack of any kind of intelligence. Cloud based gaming is still, and will be for a long time, a novelty. Much like 3D. They need to learn that.

Well, let's see. Consoles are more popular than PCs for their lower cost of entry and ease of use, and corporations like 'em for the extent of control they have over consoles. Cloud gaming lowers the cost even more since you don't need to buy the hardware that does the processing and can be directly integrated into TVs (looking at Sony here), and all it requires beside the individual price of games is a monthly fee, which a large number of gamers already pay even though it doesn't really give them back anything (looking at Microsoft here). And most games are either forgettable 4 hour romps that the players will not miss replaying or are muliti-player games whose value diminish to nothing as the playerbase moves over to a newer iteration or franchise, so the games-on-demand tactic just might work. Corporations are also happy as it gives them the ultimate control over games, and they can get a higher return in their investment as games no longer will have shipping costs, retailer's cut, second hand market and piracy. I'm pretty sure as soon as the infrastructure is there (perhaps in the console generation after the next one) everyone is going to jump over to cloud-based systems.

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