EA CFO Expects Longer Console Lifespan, More Price Cuts
Everyone loves to consider when we might see the next generation of consoles, and analysts, journalists, and gamers all have their own opinions. Some say we'll see the next Xbox as early as 2011 while Sony continues to stand by their 10-year life cycle statement for the PlayStation 3. As for EA, they believe we shouldn't hold our breaths for new systems any time soon.
According to Gamasutra, EA's CFO Eric Brown says this current console cycle will definitely be longer than any previous cycles. He also says that we haven't seen the spike in growth just yet, as we need another round of price cuts before that happens. Brown spoke at a recent Wedbush Morgan Securities conference, and he made mention of the fact that he's not sure how much further the technology can advance:
"I myself am not quite sure where we go from here. There's just no broadly-available consumer viewing technology beyond HD. You have to be a PC technophile with an ultra high resolution monitor to get past that."
But with the online capabilities of the PS3 and 360 along with the ever-rising digital download market, there's all sorts of room for upward growth, and really, we're going to need a price cut to really prompt another flood of consumer interest. Brown points towards the PS1 and PS2; two consoles that sold nearly half their total number of lifetime sales when they reached their lowest price point ($99 and $149, respectively). "... We've seen one major price drop thus far in this console cycle; we feel that we have a long ways to go," said Brown. So, even though he's not sure where the technology will go, he's certain the console life span will be quite long.
3/12/2009 John Shepard