graphic
News > Technology
Are PC games dead?
May 17, 2001: 7:30 a.m. ET

Consoles in vogue these days, but PC gamers stay confident about the future
By Staff Writer Chris Morris
graphic
graphic graphic
graphic
LOS ANGELES (CNNfn) - It happens every few years in the gaming industry. Console makers roll out their new products – and publishers and developers rush to fill the void for "next generation" titles, temporarily forgetting about the vast legions of PC gamers.

While the PC gaming industry may appear to be dying to some outsiders, insiders insist it's merely in hibernation. And it won't be long, they say, before the PC is a dominant force of the gaming world again.

"This comes about every time a new console comes out," said Rob Smith, editor-in-chief of PC Gamer. "It's real easy to say 'look at all of this cool console stuff and PC is dead.' And now, with all the new releases, it just spreads it out."

graphic  
Unreal II
Higher resolutions can make PC games sharper looking (Source: Legend Entertainment/Epic Games)
Even if the slump were to end tomorrow, though, don't expect PC games to lead the industry. When it comes to cold, hard numbers, consoles constantly top the market. In 2000, there were 128 million console video games sold, with sales of $4.1 billion, compared with just 72 million computer games sold, totaling $1.55 billion in sales, according to the Interactive Digital Software Association. Developers, the companies that actually code the games, pocket more from each PC game sale, though, since they don't have to pay a royalty fee to the maker of the system. As a result, the PC gaming market continually has an appeal.

The current wave of console mania isn't much different than ones in years past. Already, some titles that PC gamers have been looking forward to have shifted their focus to consoles.

Take, for instance, "Halo." At last year's E3, it was the pinnacle of PC gamer's dreams. The technology was astonishing and the graphics were almost unbelievable. Privately rolled out at the 1999 E3, the game had been in development for over a year and had at least another year's work ahead of it.

Then, on June 19, 2000, things changed. Microsoft acquired Bungie Software, the developers of "Halo", and the game became an X-box launch title. A PC version is still coming, but won't hit the streets until the X-Box version has been out for six-to-eight months.

Other games, such as "New Legends" (by the developer behind gaming fan favorite "Jedi Knight") and "Star Wars: Obi-Wan," will not be available for the PC despite earlier plans to do so. Instead, both titles will now be Xbox exclusive.

  graphic
PC? Who needs it?
New Legends, once a PC game, will now be Xbox exclusive (Courtesy: THQ)
"As the game progressed, it became clear that the action elements lent themselves more readily to the console market," said Mary Bihr, vice president of worldwide sales and marketing for LucasArts. "Since (Obi-Wan) was developed on the PC, it was easier to move it over to the Xbox."

One advantage console systems have over PC gaming is stability. Developers don't have to program for multiple operating systems or different video cards, so they can ensure everything is near-perfect before the game shifts. PC game developers often have to "patch" their games after release to correct errors that snuck through the game's testing phase.

The big draw of consoles, though, is price.  Granted, nearly $300 for a new PlayStation 2 or X-Box isn't cheap, but it's a lot less than the $1,000 or so a new PC will cost you. And a gamer's dream machine can cost well over $2,000. For now, the graphical quality of PCs and consoles is roughly on par. But a top-of-the-line nVidia GeForce 3 PC video card (which uses virtually the same technology as the X-Box's graphics engine) costs nearly the same as a complete console system. That's a big turnoff for someone who just wants to have an hour or two of fun every few days.

graphic  
"(The PC) is definitely suffering," said John Taylor, managing director and analyst at Arcadia Investment Corp. "You've got to realize that the performance difference between a high-end PC and a console has really narrowed ... The sweet spot of the markets, in terms of price performance, has shifted."

But PCs do have a long-term advantage. The industry's technology curve is staggering these days – and consoles are unable to take advantage of that. Typically, within a year or two, computers are able to play games that look significantly better than their console cousins.  And the price of hardware starts to drop within a few months – sometimes a few weeks – of hitting the street.

Still, Taylor remains pessimistic. Publishers who have been strictly loyal to the PC world are shifting their allegiances. (Havas' Sierra Studios unit, for instance, will publish its first console titles this year.) Additionally, developers have now had a year to become familiar with the tools required to program games for the PlayStation 2, which will mean higher quality titles.

  graphic
Max Payne
This action game is one of the most anticipated PC games of 2001 (Source: Gathering of Developers)
"The only thing that could breath new life into the PC market is if developers make a good online game for the narrow band world," he said. "In terms of PC packaged good sales, I think it's going to be a console-driven world."

LucasArts' Bihr says that despite the company's increased interest in console games, it has not turned – and does not plan to turn - its back on PC gamers.

"We haven't abandoned the PC platform," she said. "On the contrary, we have expanded our base."

There are some upsides to the increased focus on console games these days, noted Smith. Most important, the increased consolidation among publishers should result in higher quality games.

"Certainly there's a drop in the sheer volume of titles for the PC gaming market, but ... what is happening is publishers are making some smarter decisions," he said. "I think they are more realistic about what games are going to sell."

That same consolidation also works to the advantage of mid-sized publishing companies, which contribute to the innovation of the industry. Larger companies, such as Electronic Arts and Activision, typically need to sell approximately 100,000 copies of a title for it to turn a profit. AAA titles (ones expected to sit atop the sales charts for long periods) sometimes have internal target numbers of 250,000 or so.

"This consolidation may allow for space in the market for smaller companies – like Strategy First and Dreamcatcher – that can sell a game and make a profit by selling only 50,000 copies," said Smith. graphic





graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.