Video games market: a Streaming instead of game consoles

30 years Ago, Nintendo brought the Game Boy to the market. Then, the Smartphone ended the triumph of the portable game consoles of the Japanese group. Google now the home console says the fight. The future could be a "Netflix for games" – what does this mean for Nintendo?

Thomas Spinnler, boerse.ARD.de

Daddeln in the schoolyard, Gamble in the subway, Playing in the waiting room – the demand for a portable game console, was as big as Nintendo's success: The 21. April of 1989 brought the Japanese game company the Game Boy on the market. For years he remained the best-selling portable game console in the world. Almost 120 million Times the device has been sold.

Game Boy and Tetris: A dynamic Duo

First of all, the Game Boy was only with the game Tetris, one of the most successful computer games of all time. But Nintendo games like the first pokemon series, Legend of Zelda, or Super Mario have kept generations of gamblers on their toes and nimble fingers. More successful than the Game Goy, only the successor, the Nintendo DS, which sold more than 150 million.

The technical progress has brought this business model, Nintendo's in trouble, because today, everyone carries around almost his portable game console: the Smartphone. That share prices reflect business and economic developments, the Nintendo Chart, by the way, good show.

Nintendo-Chart 1.1.2000 to 16.4.2019

In the current year it is expected to be around 2.5 billion Smartphone users. So what is an extra device? Because the phone is probably the most used game medium, even if the mobile games are usually less complex than on the computer and the console, and it's all about the Gamble, by the way. Pokémon Go Nintendo managed to make the Smartphone a hit.

game console – for how long?

And fortunately, the company has yet another leg to stand on: in addition to the wide variety of exclusive and particularly in children and families popular games, there was finally the Nintendo home consoles. In this Segment the group is managed in accordance with the relatively paltry times with the game console, the Wii U thanks to the release of the Switch in 2017, again a great sales success. The Switch can either be on local TV as well as a portable console for on-the-go use.

Nintendo Switch player

But the developments in the Gaming market could soon reach the next level. Nintendo needs to seriously and, in principle, thoughts about the future of the home console - this is also true for the competitors Microsoft and Sony, X-Box and Playstation in this market.

the Netflix for games?

As one of the most powerful and wealthiest of global corporations is now the industry shake up. Recently, Google announced the introduction in the video games area. The Internet giant wants to end the Era of game consoles. Users should be able to play with the Streaming service "Stadia" directly and immediately online games. The high technical requirements will be created with the construction of a 5G network.

The performance of the computer is not provided by Google in the Cloud, special Hardware is required. Who device a Smartphone or a Tablet, a TV or any computer can immediately loszocken. The games will run on the computers of the Google data centers and from there to the platform to be streamed. In the course of this year, Stadia will start in the USA, Canada, UK and some European countries.

Stadia

The idea is so captivating, because there are virtually no barriers to entry for a total of not quite a cheap Hobby. No one needs to ask for a lot of money for a gaming-grade computer, games, local install or a console to buy. This could open up for Google is an enormous market: in emerging countries, where the financial strength of the consumer is lower, but many have a Smartphone, you could reach hundreds of millions of people.

Nintendo content in hot demand

the question of pay raises. Nothing is known about it, but most of the experts from the well-being of a subscription model, which is practiced in the TV Streaming market from providers such as Amazon Prime or Netflix already. Although all of the console manufacturers already offer subscription models with flat-rate prices, but they are not as practical as the Stadia System: You can save the game and easily from a Smartphone on the Bus, on TV at home and continue playing where you stopped.

Nintendo game, Super Mario Odyssey

Similar to the TV-Streaming, it is ultimately the content that make a System attractive, or not. The head of the Xbox Marketing Department of Microsoft, Mike Nichols, seems to Worry, since there was no Google to Content: Emerging competitors such as Google have a Cloud infrastructure, a Community with Youtube, but not content.

This could actually be a point that speaks especially for Nintendo. The Japanese game company has built over decades a wide variety of games. Still Super Mario is a successful brand. Whether these games will be streamed or on some kind of console played – who knows? Nintendo has proven in the long history of the company, that it is capable to change. But one thing is for sure: The Game Boy times are now history.

1/12 Nintendo's history in pictures