Making consoles is a thankless task, for one simple reason: they don't actually generate any profits until they are past it and in need of replacement.
It's a bit like those third-world countries that still have production lines churning out faithful reconstructions of 1970s Hillman Hunters or Morris Oxfords. No less a personage than Sony's Andrew House admitted as much when we interviewed him at the PlayStation Vita's Japanese launch.

But with the forthcoming generation of consoles, even Nintendo has to an extent joined the arms race - the Wii U will at least be more powerful than the Xbox 360 and PS3, so will be able to run cross-platform blockbusters previously beyond the steam-powered graphics processing capabilities of the Wii and its predecessors.
So, all the more reason for Sony and Microsoft to steal Nintendo's thunder at E3 - when it fleshes out the Wii U's bare bones - by offering at least a tantalising taste of the next-next generation.
Sony and Microsoft's next-next-generation consoles will surface soon enough: their devkits are out there, and no matter how draconian their non-disclosure agreements may be, details will inevitably leak out, and both companies would, of course, be incandescent if that happened without their careful stage-management.
So with a proper three-way console arms race about to break out, how will it pan out, and will the Wii U, PS4 and Xbox 720 constitute the last crop of consoles as we know them - as many commentators are suggesting?
Beware the multimedia creep
David Perry, head honcho of cloud gaming company Gaikai and a seasoned development veteran, highlights a problem that increasingly afflicts even the current generation of consoles, and will only, surely, get worse in the future. He argues that consoles are no longer consoles:
"For me, the definition of a console is a gaming device for the mass market. They plug in a cartridge, they flick a switch and a game appears on the screen." Anyone who downloaded last year's Xbox Dash update, or got suckered into buying a Kinect only to realise it's great for all manner of things, none of which involve actually playing games, will be tempted to admit a hollow laugh.

Perry, of course, has a vested interest - Gaikai facilitates proper, hardcore gaming which makes no demands on whatever hardware it runs on, because it arrives via the cloud. But it's difficult to argue with what he perceives as the next threat to the consoles:
"The digital TVs are also including all of that media stuff. I think the mistake that the console companies are making is not a mistake of their choice - it's the evolution they have to go through.
Comments
37 comments so far...
illage2 on 6 Feb '12 said:
Games delivered via the cloud? That is one of the worst ideas ever .... seriously what if you don't have access to the internet? What if your internet goes down? It means you won't be able to play your games. I am not paying loads of money for a flawed system.
This guy does not know gamers.
photoboy on 6 Feb '12 said:
I do agree with Perry that games these days are much less immediate. I can stuff a cart into my NES and boot straight to the title screen immediately. With the current consoles I have to sit through loading screens, unskippable company logos and choosing my storage medium before being able to start a game. That's assuming you don't have to download any patches for the game or console too!
That said, I'm fairly certain that the last time I played OnLive (I know that's not Gaikai but it's basically the same thing) I was still made to watch company logos before I was allowed to start the game, so I'm not sure streaming will bring us the utopian immediacy that Perry is espousing.
I don't know about Perry's servers, but the ones used by OnLive are relatively mid-ranged PCs, which is hardly a quantum leap above the current consoles, especially when encoding to video destroys so much of the fine detail of the image anyway. I think they're roughly a match for the rumoured power of the Wii U.
Then again, maybe I'm biased because I don't want my console to be in a data centre somewhere else, I want it plugged in under my telly.
solamon77 on 6 Feb '12 said:
Even though I'm sure there is a bit of self promotion in his words, Perry isn't entirely wrong with what he's saying. Consoles need to be game machines first and everything else second. Furthermore, any additional features should serve the needs of the gamer (aka, the core market these machines should be targeting) and not try to focus so hard on attracting the coveted general population that the Wii lucked into a couple years back.
Look at what happened with Sony during the PS3's launch. Back in 2006, it seemed like Sony was trying to make a cheap Blu-Ray player that also played games and ended up instead with an overpriced games console that also played Blu-Ray. Five years in, it's now a boon that the PS3 supports Blu-Ray, but was that feature really needed at the time? Probably not since the added price to include Blu-Ray technology caused Sony to go from the 90% market share the PS2 held to the less than 40% held by the PS3. If the new feature doesn't measurably add to the gaming experience then it's just needless bloat.
mattdark on 6 Feb '12 said:
Considering the amount of IP's owned directly by microsoft, Nintendo and Sony, I doubt built in gaming on your TV is the future just yet. There are so many games that these companies own the rights to, and i doubt they will be willing to let other companies have access to them when it potentially means you could play a game like Uncharted or Halo without having to buy a Playstation/Xbox.
Consoles will still be a major part of gaming for some time, despite how much some people what you to think otherwise.
ensabahnur on 6 Feb '12 said:
He could be telling the complete truth and i still wouldn't believe him. Why? Because he shares a name with this guy!
http://2.bp.blogspot.com/_ot0-flgZr2g/SI-nvCGIcvI/AAAAAAAAAUY/GRo3sHfXf58/s400/DavePerry.jpg
There is such a thing as deed poll David, though how you've managed to survive with that moniker so far is nothing short of a miracle. Everyone must want to punch you when you introduce yourself, i know i would!
roland82 on 6 Feb '12 said:
I dont see this working really. Buying a new console is a much smaller decision than buying a tv at todays prices. What about id you want both or all three 'console'? three tvs?
I understand the media-fication of the xbox and ps3 but I cant see tvs with built in consoles as the answer.
RavenxPrime on 6 Feb '12 said:
"At least Nintendo continues to do its own thing - in the past, it found a novel solution to the problem by launching a string of consoles that were past it and in need of replacement before they even went on sale"
"Nintendo has to an extent joined the arms race - the Wii U will at least be more powerful than the Xbox 360 and PS3, so will be able to run cross-platform blockbusters previously beyond the steam-powered graphics processing capabilities of the Wii and its predecessors"
Gamecube > PS2.
N64 > Saturn. Playstation.
SNES > Megadrive.
They were hardly underpowered and out of date before they were released were they.
Appears any illiterate prat can become a games journo these days
ps3james on 6 Feb '12 said:
Hmmm... Interesting thoughts. You should add Apple to the list, as there are lots of rumors about Apple joining the gaming console industry.
Barca Azul on 6 Feb '12 said:
Dave, its not 1990 or before!
People actually like the media hub concept! Why do you think MS are following Sony on it?
TV's?, what are you smoking?
Change the name too, Gaikai, no ones going to subscribe to that. Sounds like some multi colour flag love parade!
As for cloud, where I live, its at least 10 years away and by which time ill still be behind as ill need even more than ill be able to get from the ISP!
SuperMike861 on 6 Feb '12 said:
What's to stop MS, Sony and Nintendo offering exactly what OnLive/Gaikai offer in the future with the next-gen consoles anyway, if that's the way things go? (I'm very doubtful) I'd rather have something plugged into my TV that I can always play games on, rather than just when my internet's deciding to be fast enough or is even working!
vitorfernandes83 on 6 Feb '12 said:
How can these people get jobs? No intelligence required these days? Let's just buy a new TV so we can play the newest games. Wait a second, Cloud? really? I barely can play online without lags and all sorts of problems. Not everyone has a super fast internet, I'm definitely not going to pay extra to have a faster internet, even with the fastest I doubt I could stream 1080p at 60fps with next gen graphics. Wait a second, I really like my TV, just give me a powerful console.
I am sure the consoles will be around for at least another 10 years, I'll bet my life on it.
gguru1 on 6 Feb '12 said:
It's kind of ironic that he called the Wii's graphics "steam powered".
Does he realize that a steam locomotive totally outclasses most modern replacements in terms of sheer horsepower?
phate666 on 6 Feb '12 said:
*The point where I lost interest*
Barca Azul on 6 Feb '12 said:
"These are not the consoles you are looking for!"
Your weak Jedi mind tricks won't work on us Dave!
chubster2010 on 6 Feb '12 said:
Hang on? Are we talking about the next generation of consoles - i.e. the consoles that Sony and MS are going to announce next (aka the Next Generation i.e the generation that comes next. After the current gen) ? Or the consoles after that?
If it's the latter...then I think C&VG need to calm down a bit....
One generation at a time...
(Sorry to be so pedantic)
woodins on 6 Feb '12 said:
I remember him making "Earth Worm Jim" and then struggled for relevance ever since, or am I just being dismissive?
I'm not a luddite, I think Cloud in general has some really interesting applications, just I would like a choice. Call me paranoid, but I would always want a lump of silicone under my TV/monitor in case things go wrong. I cant wait for the British Public sector to put everyones details on a Cloud system in order to save costs . . . . . . . . . . . They screw up enough already and they are almost there.
capsule_toy on 6 Feb '12 said:
Oh f**k off Dave Perry, noone wants to know what you think. You're completely biased to the point of product blindness and extreme arrogance.
No matter how much you rag on Sony/Microsoft/Nintendo it doesn't make you right. You're wrong, very wrong, the sales of 360/Wii/PS3 show that, and noone cares about Gaikai or OnLive.
Noone wants it, noone needs it, not everyone could use it anyway.
Get lost and work on games again instead of plugging an uninspired "system" and berating that which you can never hope to surpass, don't come back until you've made MDK3 or Earthworm Jim 3.
phate666 on 6 Feb '12 said:
Anyone else wondering who or what a noone is?!?
Sincere apologies Capsule, but it did make me laugh!
laughing-gravy on 6 Feb '12 said:
The experience simply isn't there yet with regard to cloud gaming. But good old Dave Perry, he hasn't had a hit since Ringworm Jim. The stupid twonk!
LordVonPS3 on 6 Feb '12 said:
Modern day devices can, have and will go two ways.
1.) Box J. It'll play any type of media, let you read e-mail, surf the web... It'll also play many 3rd party games and a few unique IPs.
2.) Console K. It'll have some of the best, most familiar gaming IPs available. It'll also play most types of media, let you read e-mail and surf the web.
Conclusion: It's becoming more or less the same thing and will continue to until the difference between high-end gaming and mid-range isn't blatant.
High end gaming experiences are very much purposely defined as those IPs that you can't get on other devices. It isn't ever going to be a cost-effective model when there's more money to be made selling your games on a variety of hardware.
It makes more sense all round for a console manufacturer to sell underpowered hardware at profit and release a new (fully compatible) version of the hardware every 2 years. As long as your games don't look or work dramatically better elsewhere people will perpetually buy your hardware (being cheap) and even more of your software (convenience of multi-platform). This has been true since the ZX Spectrum Vs C64 Vs Amstrad days. The only thing that's really changed is that development studios are seemingly happy to take a manufacturer's money up front for being exclusive. That's great if the project (game) is a risky one but self defeating if it proves to be a good game that would sell hardware.
kmcroc on 6 Feb '12 said:
Another D-bag that will bad mouth the industry , just to try sell that mess of his . what D-bag.
TheLastDodo on 6 Feb '12 said:
I have a Samsung Internet TV, connected to router downstairs via wireless connection.
I go on Youtube app, pick a two minute vid to watch.
BUFFER for 20 secs, watch 5 secs of video, BUFFER for 20 seconds, watch 5 secs of video, BUFFER for 20 secs, watch 5 seconds of video, get fed up, watch it on my phone or even on the s**tty PS3 web browser instead.
www.ps3youtube.com is far better than that XL s**te, and you can download the vids to PS3 HDD too.
Anyway..........to sum up my TV is clearly NOT the next generation. Bring on the PS4/720 CONSOLES.
billysastard on 6 Feb '12 said:
exactly, its amazing what a little nintendo hate can do to skew an article.
however the gist of what perry is saying makes a lot of sense to me
my cheap dvd player plays audio cd's, photos, dvd's (all region), divx and mpeg 1 & 2
my cheapish blu ray player plays all the above + blu-ray, mp4, m4a and mkv and its networked with downloadable apps, games and offers network streaming by wifi or hardwire
likewise my tv whilst not playing physical media will play pretty much anything from usb and again its networked and has "apps and games"
so why the hell would i want my comparatively expensive videogames console to be yet another media hub, especially if it wants me to pay to use apps that are free on everything else, it costs less to replace a br player or dvd player than it costs to get a ps3 / 360 repaired and frankly they are less likely to fail than the current gen consoles. i play games on my pc but the whole reason i prefer gaming on my games consoles is that a games console should be plug and play, buy a game, put it in the console and expect it to just work, i'm sick of all these jack of all trades entertainment boxes with codes to make games work, download content, memberships / subscriptions required and neverending firmware updates adding things i neither want or need.
billysastard on 6 Feb '12 said:
your tv needs updating or at least switch to a hardwired network, wireless b/g can barely cope with hd streaming.
ricflair on 6 Feb '12 said:
How many articles are we going to get from one interview? I'm sure people will get fed up of giving an interview to CVG and then it being presented as if they've mouthed off multiple times and are getting too big for their boots!
I don't really agree with any of Perry's points, but of course he's going to make them as it's in his company's interests. Well they might be the next next gen or beyond, when internet speeds are super fast and as reliable as your electricity supply. But right now consoles aren't exactly incovenient, so I'd rather have to get up and install a disc and buy a new console every five years or so, or a new PC graphics card every so often and have zero lag than have inferior graphics from a streaming service (the graphics may be running on their servers at a high level, but the compressed stream doesn't do them justice, unless it's improved in the last couple of months or so). And that doesn't even take into account the ownership/long term issues.
TheLastDodo on 6 Feb '12 said:
TV is up to date and router is downstairs so wired connection isn't possible for my TV.
snake2011 on 6 Feb '12 said:
NO THX.
1Nightmare1 on 6 Feb '12 said:
Why are people still listening what they say? Weren't they the ones who said either MS or Sony drop out of next gen console race?! That's should be a hint that they don't know s**t what their talking about. They are basically trolls on a much larger industry based scale.
nuggit3000 on 6 Feb '12 said:
Microsoft would have to make a TV?..... No.... they would have to make 50 different TV's.
All sizes, technologies, resolutions, 3D or not 3D.
People are currently free to buy what ever TV suits them and plug in their Games machine and/or media hubs of their choice. I for one do not want this to change.
Cloud gaming surprisingly works well, but I dont like it. I dont like the fact I am paying to play a game as long as the server is around and chooses to host the game. After that all my games disapear. What about if I get bored of a game, can I trade it against my next purchase... No. Or what if a like a game only enough to buy a used copy of it for cheap, no more of that. Can I borrow my mates games... No again.
With my PS3 I know that any game I have I will still be able to play in 20 years time without having to spend any more money.
This is the future though, maybe not next gen, but in 5 to 10 years. LG are already releasing a new generation of Smart TVs that come with a Wii style wand, and an advanced app store, capable of running party games on par with some of the crap you can buy on Wii, add to that, the fact LG have signed up OnLive to be pre-installed on their hi-end TV's and a lot of people are instantly able to play console quality games without having to spend £400 on a new machine.
My Smart TV can already do most of the multimedia stuff the PS3 can do built in, so the big question to the casuals will be WHY?......
I see this as big trouble for Nintendo, but I think the core players feel the same as me, and will want a physical console to play their physical discs on.
nuggit3000 on 6 Feb '12 said:
Yea mate, something is wrong there, Mine works fine, but I do think the interface is a bit clunky. Mine is hardwired though, since the best place for a modem is behind a TV so you can hardwire you consoles.
Windowlicker79 on 6 Feb '12 said:
This is a pointless interview. Its an interview with a man who want's to sell his (bound to fail) idea by saying that unreleased and even unannounced consoles by Sony and Microsoft are already out of date. Nothing of any worth can be taken from this article. According to this guy I will have to buy LG's (eugh) latest top end TV to go in my kids bedroom so they can play video games? f**k off. Your idea will fail, LG will lose money over it and you will be looking for a new job soon.
silent moose on 6 Feb '12 said:
'PS4, Xbox 720 aren't the next generation - your TV is'
really
I have a 14 inch sharp tv from the 90s with an inch of dust and a fast text slot im not sure how much more multi-media it can get.
gypsygib on 7 Feb '12 said:
"Anyone who downloaded last year's Xbox Dash update, or got suckered into buying a Kinect only to realise it's great for all manner of things, none of which involve actually playing games"
^Quote of the year so far.
me4pd on 7 Feb '12 said:
My god... are we at the point where a f###ing screen needs its own updates? I suppose we'll be getting updates for microwaves and electric screwdrivers soon...
Jesus Christ. The human race has something very wrong with it. I feel like going on a shotgun rammpage.
ensabahnur on 7 Feb '12 said:
My Samsung is wired as well and i have no problems with it. The interface is s**t though.
Barca Azul on 7 Feb '12 said:
Ive 6Mbps, a ping on 80through wired and have the same issue! Thats the average speed here though!
Barca Azul on 7 Feb '12 said:
I notice you forgot to put the Wii on the list?
SNES and Megadrive were both fantastic consoles, depended what games you liked, but equal in my eyes. The height of Mario and Sonic.
N64, Goldeneye aside, really? Also came out way after the PS and didnt sell that well and the worst controller in history
Gamecube, Seriously? i think there is a reason the PS2 has sold over 150M units and still selling today.