Tactical shooters are niche and cannot support the budgets that the few fans of the genre actually want out of them. Genres don't fade away because of consoles, genres fade away because their fanbase is too small to support rising dev costs.
If there is a large enough demand, games get made. It's that simple. Crying about it and blaming the consoles completely ignores this point.
Operation Flashpoint (the original) was on the original Xbox. BI has ported their games successfully to the console before. The Xbox 360 probably didn't have enough ram for the massive environments that ArmA II had. The whole ArmA engine is pretty dated anyways. They worked on the renderer for ArmA 3 and it's a good looking game but the core tech of the engine remains largely the same which is a huge issue for the game's future. Considering they barely make enough money off of ArmA sales as it is, I doubt they'll be investing heavily into increasing the technology as that would add greatly to the cost. ArmA 3 couldn't even be finished in time and they had to release it in chunks because their team was stretched too thin as it was.
Operation Flashpoint 2 was made by Codemasters who made no real attempt at making it anything more than a slower paced version of Battlefield. The design was never intended on being a simulator despite what their marketing told us. Bohemian would still make a sim and then try to fit it on the console. They did that back with the original Operation Flashpoint and they were probably trying with ArmA 2 only to realize the Xbox 360's CPU was pretty weak and the thing didn't have nearly the ram needed for the environments.
Furthermore your argument heavily relies upon the notion that consoles are a direct reason why a game loses complexity. Never once have I seen you consider the fact that those complex shooters just don't have a large market in the first place. They don't even do well on the PC anymore. This is due to the fact that their audience is not large enough to support them anymore. Sure back when dev teams were 10-15 people working with very basic and proprietary tech they could develop a game on a small enough budget the small tactical shooter market could actually support it, but now that's really not the case.
I'm not bashing on tactical shooters because I do love the ArmA series and enjoy shooters with a more focus on teamwork and tactics rather than just guns blazing action, but I do understand their appeal is extremely niche. The consoles wouldn't hold them back, you can build UIs around a controller that have all of the same control of a mouse and keyboard. That's not the problem. What's the problem is the lack of the market. Why spend the money on properly porting on a genre that barely can survive on the PC where the audience is? I don't see why BI doesn't see this. There is no sim market on the console. They'll spend all of the time and money to port and then the games will do terribly. BI isn't the type of dev that would gut a series to meet a new market either.
Hell even if they gut it down to a sim-light ArmA experience the game wouldn't stand a chance in the market. People would rather just play the far higher budget AAA military shooters out there than some small budget attempt to copy.
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