I’ve come to like twit, so here’s a bit of an intro.
It was a while ago but this book from Chris Anderson, Free, a new strategy for generating money is quite interesting.
VC (Virtual Console） are all long tail business models. The fact is that Super Mario is still the big seller and the majority of the other developers titles are not selling. A lot of 3rd party developers jumped in thinking it was a chance into the world of console games. Even so, the Nintendo platform still makes money.
But to move this platform to a free model, how would things work out?
Nintendo encourages developers to produce free downloads. Money would be made off in-game advertising etc I think. Similar to google, the games are free so a lot of people play them. If Nintendo did this of course, the console would sell more. Buy a Wii and be able to play the old Famicon games as much as you like! This kind of catch line would sell the hardware. Games will be opened up, made free and players will come in the their millions leading to a frenzy much like Mixi is. Players will come more and more to realise that casual games are enough to have plenty of fun and consoles like the PS3 will go down.
What about Sony
Most people don’t know but, ….. the new PSP GO that came out in fall last year is 10,000 yen more expensive that the previous model and has less functionality! It has no slot so UMD play is a no go, it’s not selling at all.
The PSP GO should go up against the Nintendo Wii VC and should sell for free. Sony could live off the profits made from downloads.
And Microsofts black ship.
The XBox is always online, the games are interesting and selling Xbox Live Arcade. They also got onto Facebook and Twitter integration early.
Next they will completely integrate the Facebook API then Zynga and Sunshine Ranch and the likes will be free to distribute their games in full HD on consoles. When this all comes about, things will really start to get interesting!
- Nintendo Wii will move to a free business model, monetize by advertising.
- Sony should hand out the PSP GO left right and centre as free hardware and cash in from downloads.
- Microsoft will add more social functionality, if or when this happens we would be interested in developing for the 360 again.
In terms of new business models, Microsoft is leading the field. Next is Nintendo and lastly Sony. Each could have a free strategy.
I predict all of this will begin in mid 2010.
