The next generation of video game consoles will have online connectivity at their heart. We’re likely even to see some designed to serve as an “all-in-one” hub to connect to your TV screen – incorporating a PVR, DVD-RW as well as gaming.
Processing power will continue to jump enabling game developers to create ever more visual and realistic on-screen display. However, even in 3 years, we will still not be at the point where the animation appears completely real.
In-game video advertising networks will exist and be a standard form of reaching key demographics (e.g., young men).
Portable game consoles will continue in the direction set by PSP and attempt to morph into Portable Entertainment centres. However, copy protection constraints and competing formats will slow their take-up beyond games, at least in the near-term. (A case in point: PSP does not yet easily support playing songs in the AAC format, despite it being the standard for all tracks purchased through iTunes, the leading online music store).
Games played on mobile phones will become even bigger as greater variety in titles arrives, downloading becomes easier, and phones get better screens, longer-life batteries & bigger on-board memory. As the quality of mobile phone games improve, they will take the place for less-committed gamers of portable games devices like GameBoy. In select areas (e.g., Japan, Scandinavia), there will be development of pervasive location based games, but these will likely take longer than 3 years to become a significant format.
Online games will continue to grow, including Virtual Worlds and others that aim to deliver an experience rather than simply a challenge. We’ll start to see a merging of Virtual Worlds like There.com (designed not as a game but instead simply as an “everyday hangout”) with the community elements of sites like MySpace. Multiplayer gaming – be it in collaboration or competing – will be a growth area online.


