Both Sony and Microsoft will continue to focus on physical disks

Jan 25, 2012 20:11 GMT  ·  By

Michael Pachter, who is an analyst watching the video game industry for research firm Wedbush Morgan, stated that the upcoming digital revolution would affect console makers in very different ways and might have the biggest negative impact on Nintendo and its Wii devices.

Speaking to IndustryGamers, the analyst stated, “Nintendo doesn’t even know there’s an Internet yet so trust me, they’re going to be making consoles until someone explains it to them.”

He then added, “Sony is a content provider in film and music and games; I think they’re ahead of the curve. Microsoft… They’re right back on track. These guys want to be an entertainment hub.

“So you’re going to get a box out of Microsoft that’s going to turn your washer and dryer on, and they’re going to give you the multi-purpose console of all time.”

In Pachter’s opinion, even if services like Gaikai and OnLive find success, home gaming consoles will exist for at least another generation, mostly because any sort of digital revolution will need time to spread.

He compared the current situation in the gaming industry with the early years of the battle between music being sold via CDs and via digital means, noting that Sony, Microsoft and Nintendo will try to persuade gamers to stay loyal to the disk model of distribution in the future.

The upcoming Wii U home console from Nintendo, which is supposed to be launched during 2012, will use disks to get most of its content, but the company also announced that it planned to expand the connectivity options for the platform.

There were also rumors that both Origin from Electronic Arts and Steam from Valve were being considered to deliver digital titles to the Wii U.

Neither Sony nor Microsoft has confirmed plans for a new console generation, but both are expected to include disk drives as the main ways of content delivery.