Console Wars V – Part I October 18, 2010

The year was 2004 and the current generation of consoles had become far too long in the tooth.  The Nintendo GameCube, Sony Playstation 2 and Microsoft Xbox just did not have the power to support the new graphics engines that game developers were creating.  By the last year of their use, most game developers had shifted focus to the PC, which had always been the most powerful processing platform and did their best to scale back the graphics so they could be playable on the consoles which just did not have the power to run them at their full capability.  When software developers were flocking to the PC in droves by 2004, the console manufacturers secretly started shifting focus from their current generation and started to look towards the future.

Releasing consoles which would become obsolete at the time of release was no longer going to be a viable business model.  The next generation of consoles would have to be far more powerful than the current PCs they could compete against, or be able to do things that PCs could never do.  Also, TV manufacturers were finally mass producing High Definition Televisions, ending the era of where a 480i static filled image was your only option when watching what was on.  Now TVs were being made to support 720p and 1080i resolutions which provided a crisper cleaner image, and were widescreen, which offered a larger field of view and removal of those pesky black bars in DVDs.  In a market with only three leaders, Sony, Microsoft and Nintendo, they would all need to impress, and quickly.  But they had all been preparing for this, and they were almost ready to lift the curtain on what they had.

Sony had been readying the Cell Processor with IBM for some time, and it was nearly ready for mass production.  It was practically an entire computer inside a processor with multiple SPUs which could take up the work of independent functions like audio or physics, and a central processor to rule them all.  Sony was also prepping their own optical disc format for viewing movies in High Definition, something that standard DVD could not do.  It would also allow for enormous space on game discs, over five times more space than current DVD could offer.  They also wanted to make sure that full compatibility would happen with all Playstation 1 and Playstation 2 games, so they included Playstation 2’s internal hardware inside the new console.  They would also be the only console to support 1080p at launch, the highest HDTV resolution at the time, and one that no existing TV could yet display.  Sony’s third entry into the Console Wars would be the Playstation 3.  The cost of all of this processing muscle was going to be a hefty $499 for a 20gb model or $599 for a 60gb model with wi-fi support.  The controllers would be almost identical to the original Dual Shock 1 and 2, with a small downside, they would lack vibration in exchange for motion control, something Sony said was a fair trade off.

Microsoft had also been experimenting on a new console for some time.  Instead of going for a console which had a computer inside of a processor, they would include three multi-threaded processors which could function independently or together.  Most PCs at the time had only one processor, and even fewer had processors that were multi-threaded.  With three cores and 3Ghz coming out of each core, the Xbox 360 would be more powerful than over 90% of home desktop PCs.  Microsoft also didn’t believe Blu-Ray would take off, opting instead to stay with DVD as a storage medium for this generation, and later on allying with Sony’s chief format competitor, Toshiba, for their new format HD-DVD, promising its support for the 360 at a later time.  They were also ready to create the best interface, built around their success with Xbox Live, allowing for a unified patch system, multiplayer friends list and a cross-game achievement system.  The problem was the system was far too different than the original Xbox to support all Xbox games, so only a select few games from Xbox would be playable on the new console at launch, but more were promised to come later.

Then there was Nintendo…  with their Revolution.  No system specs were announced for it but they promised it would truly revolutionize the gaming industry in a way that would harken back to the original days when they ruled the market with the NES.  Without any data to back up their claims, most considered this hype and nothing more.  Even the early previews of it wouldn’t show the controller which Nintendo claimed needed to stay under wraps because they were worried their competition would steal it.  Finally, at E3 that year, Nintendo’s console was fully unveiled, along with it’s new name, the Wii.  The new controller was capable of motion control, something not used in the Xbox 360, and only minimally used in the Playstation 3.  The demos wowed a lot of people, and the Wii saw a lot of press that E3.  It also supported all GameCube games natively, as well as their memory cards and controllers.  But what was disappointing about it was the system specifications.  The processor was barely more powerful than Nintendo’s GameCube was, as was the graphics card.  Because of this, it would never be able to render anything in HD .  It would use DVDs as a storage medium, but would not provide DVD movie playback, a feature almost everything else supported in 2006.  The motion-control system had never been heard of before, and no one believed it could be precise or responsive enough to work, and was unlike any controller seen before.  Then there was the name, which many likened to toilet humor.  But the price would be a low $250, $50 cheaper than the lowest model of the Xbox 360, and $250 cheaper than the lowest model of the Playstation 3.  And it would include a full game, Wii Sports, which would take full advantage of the capabilities of the Wii.

With it’s low processing power and what many felt was a gimmicky controller, Nintendo was not even considered for this next format war, especially after the disappointment that was the Nintendo GameCube.  Sony and Microsoft prepared to face each other to become the number one console of the generation.  Sony was the heavy favorite, having ruled the last two console wars with an iron fist, the first one a heavy surprise, the second one was no one’s surprise.  With Blu-Ray expected to be as important to the Playstation 3 as DVD was to the Playstation 2, the analysts believed Sony had this generation in the bank.

Console War IV – Part II October 13, 2010

The Xbox and the GameCube released within one week of each other in North America, the Xbox first and the GameCube second.  The Xbox launched with one of the best launch titles of all time, which became one of the biggest sellers of the console’s lifespan, Halo, made by newly Microsoft-Owned developer Bungie.  The Xbox would see fantastic initial sales and quick sellouts among retailers, all thanks to Halo.  Also, with the game’s support of Local Area Networks (LANs), it consequently became popular among college students who had them plugged into their network connections, as they were able to find anyone on the same local network (usually people in the same dorm) and play games against each other from their rooms.  The same thing that made the original Doom so popular on the PC was now happening on a console.

Nintendo released the GameCube with no first party Mario title, no CD or DVD playback, and no online support.  The GameCube would see immediate sales but they very quickly slowed down.  Without a first-party Mario title at launch for a Nintendo system, the GameCube slumped.  When that Mario game was finally released, it was no where near as good as their previous games like Mario 64 and the GameCube did not become the major system seller that Nintendo was hoping for.

Sony’s answer to the new competition was the release of the PS2’s original killer app, Metal Gear Solid 2: Sons of Liberty, the sequel to the number one game of the original Playstation and the most anticipated game of 2001, even more anticipated than Microsoft’s Halo.

One year after the launch of the Xbox, Microsoft, to everyone (including retailers) surprise, launched Xbox Live, the first ever fully integrated premium console online multiplayer service.  All future Xbox games, if they supported Live functionality, would be able to use Xbox Live’s servers to have full cross-game voice chat (which was unheard of even on the PC), guaranteed broadband online speeds (since the Xbox would not support a dial-up modem).  The price to gamers was $50US per year, and the gamers happily paid it as they were getting more than just online play.  They were getting access to patches, and also for the first time on a console, downloadable content in the form of new levels, multiplayer maps, and skins.  All that could be downloaded either for no extra fee or a premium price.  It was so revolutionary, Sony and Nintendo never had a response to the service for the length of the generation.  The closest that generation had to it was Sega’s Dreamcast modem, but it was limited to dial up speeds (which were abysmal) had no integrated voice chat, games could not be patched, and without a hard drive DLC was impossible.

Being first out of the gate was still doing well for Sony, who finally started selling online adpaters for the Playstation 2 with both a dial up modem and network card.  All new PS2s started coming with the adapters at no extra cost, but the units by themselves were not really being bought by the people who already had PS2s.  Also the PS2’s Hard Drive released in the form of Final Fantasy XI, the newest Final Fantasy game, which required a persistent online connection and a monthly fee to play.  At $100 extra dollars and not many interested in playing this game, the Hard Drives mostly just collected dust, especially since Final Fantasy XI was already on the PC, which was much better suited to playing MMORPGs than the PS2 was.  They did become extremely popular to homebrew users however, who used the Hard Drives to back up their games and play them without the use of discs, not something Sony was hoping for.  The PS2s were still selling extremely well though, as it had the largest catalog of any of the other consoles and a lot of third party exclusives, like Grand Theft Auto 3 and Metal Gear Solid 3: Snake Eater.

The GameCube was still not doing well.  It wouldn’t be until later in the console’s lifespan when first party titles like Metroid Prime and a price drop would bring the GameCube back from obscurity.  Later releases like Mario Kart: Double Dash and Super Smash Bros: Melee would eventually become the killer apps for the console, but it was too late, the GameCube just did not sell the units Nintendo needed.  They would offer network and dial-up modem adapters for the GameCube, but without a killer app to support either, both just collected dust on retail shelves.  The few gamers who did buy them probably never used them.

While the PS2 was considered the clear winner of that generation of the console wars, Microsoft, a relative newcomer to the block was able to hold their own against the power of Sony.  The launch of Xbox Live could also take the crown as the most groundbreaking achievement in the history of consoles.  Finally there was a unified broadband multiplayer service, something that the PC didn’t even have, and it was costing gamers $50US a year, which they were happily paying.

However, the most disheartening news was Nintendo’s GameCube was a tremendous disappointment.  Unable to sell the amount of GameCube  units they needed, it was a major black eye for Nintendo, which to many was still considered the finest game studio in the world.  It was also a financial bust for them, as they still made a loss on every GameCube sold.

This was also the finest generation Sony would have.  Their decision to launch with a DVD player gave them early sales.  They also had a healthy release of extremely successful games like Metal Gear Solid 2: Sons of Liberty (the most anticipated PS2 game at launch), a huge exclusive third party support (Grand Theft Auto 3 launched on PS2 first and was a major system seller), and great first party exclusives like God of War.  Because of all of this, the PS2 is still considered to this day the most successful console of all time.

With Sega out for the count, the next generation of the console war would be fought by only Sony, Nintendo, and Microsoft, and that story will be coming next time.

Console War – IV Part I October 10, 2010

It all started with Sega.  After the abysmal failure of the Sega Saturn, Sega, now under new management in the US, made the intelligent decision to fix every problem the Saturn had with their next console, the Dreamcast.  They developed not just a high-powered graphics chip and CPU, but the developer tools to build games for the system made development easier, and allowed the designers to focus on quality.  It also had a built in 56k modem, which was standard on most PCs of the day, but unused in most consoles.  Multiplayer gaming since the days of Doom and Quake on the PC were becoming one huge thing that PCs were holding over consoles, and Sega US knew it.  To truly revolutionize, they needed online multiplayer support and that meant including a modem.  One thing it would not have would be DVD support.  A new physical medium on the block, it was literally the best format at the time for home media viewing, blowing away VHS and Laserdisc in quality. It also offered a larger storage capacity for games.  However, the technology would just be too expensive to include in the console at launch and had to be left out.  A slightly larger capacity CD-ROM would be used for physical media, and at the time, it would be enough.

Sega launched the Dreamcast with a high price point and one of the best launch lineups in gaming history.  They also had one of the biggest advertising campaigns ever. As the first console of the new generation and graphics that made all the current generation of games just look stale in comparison, the Dreamcast sold out its initial shipment almost immediately, and became the must own item of Christmas 1999.

However, something was brewing which would shake the very foundations of Sega’s plans for dominance.  With the CD-ROM storage solution, excellent hardware, and unbeatable third party support, Sony’s Playstation had been the winner of the previous console generation.  Sony’s successor to the Playstation, the Playstation 2, would launch a year after Sega’s Dreamcast, and while it wouldn’t have an amazing launch lineup like the Dreamcast did, it would have something at launch that the Dreamcast would not have, something to offer customers that would for the first time have a console trancend past just gaming unit, but make it an integral part of a new generation of home-theater technology, DVD.

The Playstation 2 shipped November 2000 and with only half the amount of consoles at launch than what was initially pre-ordered, and no must-own games at launch.  All Playstation 2s were sold before the start of the working day could even begin, and no one knew when more were coming.  At $299, the same price as a standalone DVD player, the Playstation 2 was a great value to early technology enthusiasts and gamers, two types of people who weren’t mutually exclusive.

The early launch may have helped Sega in the beginning, but it had also cost them dearly.  By not waiting for DVD to become affordable, it was not included in the Dreamcast and that was their undoing.  The release of Sony’s PS2 brought the death of the Dreamcast.  DVD was just too important to early consumers, and at Christmas 2000, a machine that did not have this functionality was passed up.  After Christmas 2000, and the clear winner of that Christmas being Sony by far, Sega threw in the towel and discontinued manufacturing Dreamcasts.  Games would still be released for a while, but third parties started switching gears to work only with Sony.  Sega, without a first party platform to develop games exclusively for, would become a software company making games for all platforms.

By March 2001, Sony could finally meet the heavy demand for the Playstation 2, which you could finally find in stores.  However, there were still two more consoles getting ready to launch, could they possibly see the same magic after the tremendous success of the launch of the PS2, or would they share Sega’s fate?

Nintendo was getting ready to release their next generation console, the GameCube, originally codenamed the Dolphin, and it would be ready to launch in the next near.  And there was a new contender in the ring, software publisher Microsoft, the most successful company in the world, and they had their own console and unlimited funds to produce it, the Xbox.

A lot of the gaming press was skeptical of Microsoft’s place in the console war, but Microsoft was not to be completely written off.  Sony was once a newcomer in the previous generation, and they were able to completely knock out Sega.   Microsoft was no stranger to games.  The Windows Operating System had been running games since it was founded, and technically Microsoft had already been a major player in the console war for years prior with the PC format.  The problem was Microsoft was and always had been a company that only made software, hardware had always been someone else’s job, and by selling software for hardware, Microsoft’s business plan had made them billions.  Now they would be making software and hardware and they had to compete with Sony and Nintendo.  However, Microsoft had an ace up their sleeve.  The success of the Xbox can all be staked on the greatest business decision Microsoft ever made, the purchase of game developer Bungie.

The Xbox was by far the most powerful console of the generation.  It had the fastest processor and the best graphics chipset.  It also had a built in hard drive, something that Sony had teased would be coming for the PS2 but would not launch with.  It also had an integrated network port which could be used for LAN play in games that supported it, something that would not launch with the other consoles either but was promised to come later.  This was just as essential to Microsoft’s business plan as the Dreamcast’s modem was to Sega.  People didn’t know it yet, but Microsoft was getting ready to launch a full broadband online gaming network which would revolutionize online play forever.

The last entry would again be Nintendo with the GameCube, but unlike the release of the Nintendo 64, people were just not waiting on the GameCube this time around.  Nintendo was really bringing nothing new to the table.  They had superior graphics to the N64, but they were still playing by the same rules.  A cartridge based game release was completely impractical (it was through most of the N64’s lifespan) but Nintendo was still going to try for a proprietary format to prevent piracy.  Instead of using a full DVD as the other companies were using, they would manufacture a smaller DVD, which would be difficult to copy.  However, this would still limit capacity per disk to less than half of what could be offered in the PS2 and Xbox, and make DVD playback impossible, the very thing that killed the Dreamcast.  But it did have a superior graphics processor than the PS2 and the exclusive software support of Nintendo’s first party, the very thing that made the N64 hold it’s own against Sony’s original Playstation.  At $199, it was priced to compete, but Nintendo would be taking a loss for every console sold.

It was now November 2001, Sega was out of the picture, and Sony’s Playstation 2 was quickly becoming the most successful product in history.  But now Nintendo and Microsoft were ready to lauch their products, hoping to take a piece out of the numbers the Playstation 2 were selling.

Would they be successful?  Stay tuned for Part 2, coming soon!