Ex-Xbox exec: No future for consoles

Former head of Microsoft's European game business sees an end to the dedicated gaming system.

Convergence is a big theme in the gaming industry right now. Gaming devices no longer just play games: The PlayStation Portable is a phone; the Xbox 360 and PlayStation 3 will both get digital video recorder functionality; and the DS can be an interactive program at the ball game or a museum tour guide.

One former industry heavyweight thinks the technological convergence of the industry is such a growing trend that in 5 to 10 years, he believes, dedicated gaming systems will be a thing of the past. Before he retired from his role as vice president of Microsoft's European home and entertainment division in 2003, Sandy Duncan oversaw the company's Xbox operations in the continent. Now Duncan's back in the gaming industry as the CEO of upstart game development site YoYo Games, and he shared his view of the future in an interview with That VideoGame Blog.

"The business model is very risky and the costs associated with creating new hardware are incredibly high," Duncan said. "There is a definite convergence of other devices such as set top boxes. There's hardly any technology difference between some hard disc video recorders and an Xbox 360 for example. In fact, in 5 to 10 years I don't think you'll have any box at all under your TV; most of this stuff will be 'virtualized' as Web services by your content provider."

412 Comments

  • PoisonMushroom

    Posted Mar 28, 2008 12:08 pm PT

    No, I don't think so. I think this is mindless speculation. Were this true, in a few years a PS4 wouldn't be announced, and I don't think that will be the case. Just some dude trying to make a name for himself by saying something controversial.

  • raahsnavj

    Posted Mar 28, 2008 12:03 pm PT

    I posted this topic early this morning in the general game forum. There was a little more discussion and insight in there.

    Forum post

  • nappan

    Posted Mar 28, 2008 12:02 pm PT

    I think he's right, but I don't think his timing is on target. There are markets you'd be giving up if you hewed to that model in the next decade, and besides, that would be a chance for cable and sattelite companies to kiss off the console devs. The big three console makers want more than a piece of the game sales pie, they want market control and without a platform that won't happen. Face it, as long as those companies want to make a box and they have the game devs making content for THEM, not for a "web service", you go where the games are.

  • Phazevariance

    Posted Mar 28, 2008 12:02 pm PT

    Sucks, cause i'd rather still have a hard copy of a game anyday over a digital version kept off on a server somewhere that i can downlaod anytime. What if the net went down for soem reason, I would lose everything!

  • Netherscourge

    Posted Mar 28, 2008 12:01 pm PT

    Hence the "EX"-Xbox exec moniker...

  • nobeaner

    Posted Mar 28, 2008 12:01 pm PT

    Didn't Dennis Dyack already say something about consoles becoming commodified in a few years? And didn't he say this in August of 2007? Still, nice to see Sandy Duncan tow this line as well.

  • werc96

    Posted Mar 28, 2008 12:01 pm PT

    I hope that doesnt happen, I love consoles...I love hard copies of the game, I love the cables everywhere....I love everything about being a gamer...You take one of the only things us gamers of the old school have..then your taking one big chunk of that entertaintment along with it. Im doubting this will happen....but if it ever does...videogames might just go the way of atari once again.

  • fartranger

    Posted Mar 28, 2008 12:01 pm PT

    I doubt it, maybe in 30 years but people love a dedicated gaming system. Just look at the wii. It sells like hot cakes

  • crzyguy4242 posted Mar 28, 2008 12:00 pm PT (does not meet display criteria. sign in to show)

    crzyguy4242

    Posted Mar 28, 2008 12:00 pm PT (hide)

    microsoft sucks. Sike, im no fanboy, just thought it would be funny to say that.

  • Mutarotation

    Posted Mar 28, 2008 11:58 am PT

    He might have a point there. Peripheral makers will rejoice!

  • thekodaman

    Posted Mar 28, 2008 11:56 am PT

    Wont happen to be perfectly honest, until these commodities and PCs come down vastly in price people will always go for the cheaper and therefore more viable option if they offer comparable services.

  • PS_Family posted Mar 28, 2008 11:51 am PT (does not meet display criteria. sign in to show)

    PS_Family

    Posted Mar 28, 2008 11:51 am PT (hide)

    More sour grapes MS related.

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