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Ex-Sony Boss Discusses Next PlayStation, Xbox

26

New business models.

Published: 19:03, 21/07/2011 by Staff.
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The current console model – that of a piece of expensive hardware and real physical media – is about to change.  Those are the thoughts of ex-Sony Worldwide Studio boss Phil Harrison, speaking at Develop today.


Phi Harrison is now on the board of directors of cloud gaming service Gankai.
Harrison sees a move towards a “service-based” model, and suggests that the age of manufacturers spending $3-4 billion on technology and then taking that back slowly on software is over.  “That’s the business model of the last 25-30 years,” he said.

He says the model going forward, on the next generation of consoles, is going to become a “combination of retail and services” and will probably be more about business models and monetisation than CPU speeds and graphics.

“I don’t think this means PlayStation the brand goes away or Xbox the brand goes away,” he says, referring to how online services like OnLive have bucked the trend, “but it just manifests itself in a different way.”

“The technology to stream high-quality games directly to your living room or computer or TV is not some kind of science-fiction fantasy – it works, and it’ll only get better over time. I think that’s clearly going to be a future for our industry.”

Harrison also prefers the free-to-play model, a model that LittleBigPlanet was very nearly a guinea pig for.  ”I think by and large we’re moving towards a free-to-play business model where the entry point is going to be free and you’re monetizing the engagement,” he said.

“70-90 per cent will be playing for free, but that other per cent will make the game far more profitable than you could ever get selling it in the shop.”

Some of us prefer disks, but when we’re forced to pay extra to play second hand these days – something that’s not sitting well with a good chunk of our readership at least – who knows what the publishers (and console manufacturers) will try next.

Comments:
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  1. No free-to-play SP games relying of graphics and solid gameplay though? Are the likes of those going to be extinct?

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  2. I am old skool. I love owning a console. Racking up a games collection. Its part of the hobby.

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    • I’m with you on that.

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    • 100% with you on that. I’m not into this free-to-play stuff. Console, discs and PSN for me please.

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    • Same here

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    • Agreed, it’s nice feeling like you actually own it (the license, that is), and can play it at your leisure.

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    • I too agree, and also disagree entirely with this statement :

      “The technology to stream high-quality games directly to your living room or computer or TV is not some kind of science-fiction fantasy – it works, and it’ll only get better over time”

      High quality games still need high quality hardware to play them on…….. otherwise I’ll just fire up the 486 tower I’ve got tucked up in the attic so I can play Call of Duty Modern Warefare 3???!

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    • Agree. Though I like having options, a console needs to be involved. It just feels right.

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    • 100% the same.

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      • agreed, physical media I always prefer. And yes I always buy CD’s, never downloaded a track in my life. Not because I don’t know how, its because I prefer having something in hand. If that changes on consoles, I wont be buying unfortunately.

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    • A lotta love for disc based media here! Im in with you lot.

      I of course like downloadable titles, but i treat these as much smaller affairs & still prefer my blockbusters (not Bob Holness!) to come on disc.

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    • Super agreed !!!

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  3. Personally I always take ex employees comments like this with a pinch of salt, whilst it might be true it’s insignificant at this present time! Until the same comments are set in stone and announced by Mr.Butler Ill just carry in with me ps3 thanks,

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    • I know what you mean, he’s hardly going to say “my new company’s ideas are stupid, my old company will continue to totally eclipse it with its proven business model”

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  4. Whatever happened to OnLive, i haven’t heard anything about it since it launched. Does anyone here use it?

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    • I just read the article and was about to post the same question. Is it real? Is it up and running? Did it not launch in the UK and is that the reason I never see it? So many questions…

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      • I think it’s up and running in the US and coming soon to the UK. Pretty sure I saw that somewhere but not sure for a link.

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  5. I honestly wouldn’t would be scared of any letters from my ISP if I was streaming in HD for 2 hours + my regular internet usage.

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  6. There are two problems with having a system that ‘streams high-quality games directly to your living room or computer or TV’. First the internet connections aren’t 100% reliable, and second, security.
    Look how peed off people were when the PSN was down for a few weeks, and you could still play games in single player mode, imagine if that happened again with a online based system, no gaming at all!

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    • This is the reason why we should always be given the choice if we want the hardware or not. And as said above, it’s part of a hobby. I try keep my collection in mint condition in case I decide I need to sell some of it.

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  7. Hardware with just a online functionally is a recipe for disaster. Oh and what of CLASSIC games? I doubt we’ll ever see any Bullfrog games like Theme Park and Dungeon Keeper because of legal stuff around the globe so whats the point?

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  8. I have nothing against kids drawing faces on eggs, but to then put it on the board of directors is beyond me…..

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  9. When we’re _all_ on fibre optic broadband, etc. then I’ll believe hime, for now he’s just a well-paid troll, or at the very least a well-paid marketing shill.

    Oh and service based models, may well work on paper, the realiy of the situation is very different. It’s all well and good going digital as your only distribution channel, and many will ook at Apple’s AppStore model, although all it does is stifle competition, reduce consumer choice, fix prices and form the primary basis for monopoly.

    In fact the only digital download service that I have any respect for is Steam.

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    • Virgin Media say that I’m on their fibre optic broadband and sometimes I can download between 2.5mb/s – 3mb/s and then other times it slows down to a crawl, no more than 100kb/s….. speed is not consistent and will be 10 times worse if everyone in the local neighbourhood is hogging the connection

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      • I honestly didn’t realise it was that bad….. But then again it wouldn’t surprise me, ISPs using faster speed lines just to up the contention ratios, resulting in no net gain for users.

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      • Its not that bad everywhere. im on their fibre optic broadband and i get 18MB-19MB/s out of 20 i pay for…

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