Streaming is not a threat

May 17, 2010 06:58 GMT  ·  By

Sales of home consoles seem to be slowing down, as shown by the NPD Group numbers for the North American market, despite the fact that Nintendo, Sony and Microsoft have bought down the prices of their devices. And with the manufacturers saying that the current Xbox 360 and PlayStation 3 will have a ten year life cycle it might be that the follow-ups will have to compete with so-called videogame streaming services, like OnLive and Gaikai, designed to allow players to enjoy their favorite titles despite lacking the actual hardware needed to run it, using the power of the Internet.

Still, speaking with analysts, Satoru Iwata, the president of Nintendo, said “We do not think that the combination of a game system and dedicated software will last forever. However, we do not believe that hardware dedicated to gaming shall (become obsolete and) perish in a few years. I personally think that kind of scenario is unthinkable”.

Both OnLive and Gaikai are currently untested on a large scale and all the console manufacturers have the ability of controlling the install base of their devices, which is quite large. Nintendo is also saying that the way the Wii integrates motion tracking cannot be replicated without the hardware being present in the room.

Nintendo has already announced that it planned to launch a new handheld, called the 3DS, which would allow players to experience full three dimensional videogames without the use of any glasses. Speculation is also rampant that the Japanese company is preparing to show off a new Wii version, capable of offering full High Definition graphics and with more storage space, designed to counter the threat coming from Sony and Microsoft. The two rivals plan to launch Project Natal and PlayStation Move, their own motion tracking solution, and hope they will help them advance into the more casual gaming space.