Jesse Divnich and Michael Pachter discuss whether or not modern consoles have peaked.

Micael Pachter: "We may be able to see games that run faster than 60 frames-per-second and at fidelity higher than 1080p, but we can't really justify a several hundred dollar console purchase and games that may cost $100 million to make just because Sony or Microsoft decides we need to play games at 240 frames-per-second in 1620p (or whatever is the next step up). The experience may be better, but not sufficiently better to have mass appeal at those prices. I'd say that the analogy is to beef, where all of us can discern the difference between Chateaubriand and Filet Mignon, but it isn't sufficiently better to justify twice the price for most people. The ultra-wealthy will embrace new technology, but since the price to make the consoles faster and the games more robust will be high, the cost of the consoles and games will likely be priced beyond the mass market's ability to justify, and the next generation will therefore be less successful."

Jesse Divnich: "To say that our cycle has 'peaked' is a very broad and macro-level view. Of course this generation has peaked, but there still remains multiple areas of growth, despite a potentially declining market in traditional physical sales. Categories such as dance, shooters and action continue to show positive growth, and will likely continue well into 2012. For publishers and developers, it is important to recognise that despite a total market decline, there always remain opportunities to release quality content and generate substantial profits. Even if traditional physical console sales decline from $60 billion to $40 billion, that still leaves $40 billion on the table and nearly $5 billion in profits. Additionally, our industry is facing a major and upcoming transition with the rise of social and digital games. You can certainly expect the consoles of the future will expand upon these business models to publishers and developers."

via Eurogamer

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