Industry veteran and former PlayStation CEO Shawn Layden believes the end of the classic console wars will come with a common hardware standard modeled after DVD and Blu-ray. Sony, Xbox, and Nintendo should open up their closed ecosystems to make gaming accessible to the masses.
However, this approach contradicts the idea that exclusive content is what ultimately sells the hardware. This is what made the PlayStation so successful and where the industry is currently headed again – towards more exclusivity.
The DVD principle for video games
The gaming industry is hindering itself with exclusive platforms and unnecessarily restricting competition. Instead, the market should be defined by content, not hardware. Multiple manufacturers could build devices that run every game. A consortium is needed.
"The games industry will eventually need to arrive at a similar kind of consortium where a group of manufacturers agree on a standard," Layden told us. PSI.
The principle is simple. It worked for DVDs back then, so why not for consoles? The advantage is obvious. Gamers would no longer have to choose in front of the store shelf. One disc, one standard, full compatibility. This significantly increases the reach. Gaming generates around 220 billion US dollars in revenue worldwide, but lags behind in terms of cultural influence.
"In terms of revenue, we are the company with the greatest impact in the entertainment industry, but our social impact is the smallest."
Everyone knows a current top movie or a hit song. It's different with games. The barrier to entry is simply too high. Anyone who wants to join the conversation has to shell out hundreds of euros or dollars for a specific box set. That deters casual gamers.
"I believe one of the limiting factors is that you have to buy specific hardware from one of three manufacturers."
Cloud gaming is not a solution.
Pure cloud computing is not a viable alternative to hardware. The infrastructure is simply not sufficient worldwide. Even high-speed internet connections don't guarantee flawless streaming via GeForce Now or PlayStation Plus Premium. Latency and connection drops ruin the gaming experience. Hardware remains essential. A common standard is the only logical compromise between outdated ecosystems and unstable cloud streaming.
However, its implementation remains a pipe dream. Even the industry veteran knows this.
"Theoretically, I think that's correct. Practically speaking, however, that probably won't happen."
Sony, Microsoft, and Nintendo thrive on their own stores and hardware tie-ins. They earn a commission on every copy sold on their platform. No one willingly gives up this cash cow. Their economic self-interest outweighs the medium's social influence.
Beautiful theory, utopian practice
The proposal is clever, but it falls short in the face of the tech giants' reality. A unified standard would democratize gaming and lower costs for us players. As long as Sony and Nintendo rake in record profits with their exclusive titles, the three-way market will remain unchanged. The idea remains an interesting thought experiment, nothing more.
What do you think of the idea: Would you buy a console from a third-party manufacturer like Panasonic or LG if it could run all PlayStation and Xbox games?
It doesn't necessarily have to be uniform, but modular. The basis is the joint development of a station where each gamer can decide for themselves which console modules they want to buy from which system, be it PlayStation, Xbox, Nintendo, or PC à la Steam Machine. Retro gaming would also be possible with a suitable module, thus reviving older generations through a new concept. For example: I want to play old GBA games, buy a module, insert the old card, and play, or I'm in the mood for N64 games—same principle… Looking at it this way, it's a win-win for everyone.