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Jan 1 / Ozymandias

2007 Game Industry Predictions & Prognostications

As promised, here are my game industry predictions for 2007. I wanted to publish them today, at the beginning of the year, with the intent of us all reviewing them a year from now. Should be fun, no matter what the result!

Note that I was unable to use many of your suggestions as they were Xbox 360 specific. Making predictions around the Xbox is problematic for me as I have to be very careful to not even hint at anything I might know. I apologize, but I hope you understand. And hopefully you’ll find the below predictions controversial enough for now. Wink

There are only eight predictions here as I think I would have been stretching to reach ten (especially without Xbox bullets). Look forward to your comments – and Happy New Year!

2007 Game Industry Predictions:

  • The original PSP (with memory stick) will be discontinued, and replaced by a new model with an integrated hard drive. The new model will enable connectivity to the Playstation store via internet connection, and allow you to purchase and download both emulated PS1 and native PSP games directly. Over time (meaning not in 2007), it will also allow you to purchase music and movies from the Sony store.
  • The Playstation 3 will have an effective price drop of at least $100 by Thanksgiving 2007. By effective, I mean that it’s also possible that the price will remain the same, but at least $100 of value will be added to the bundle.
  • Nintendo will release their own Live Arcade service for the Wii. Specifically, this means Nintendo will enable third-party developers to create, distribute, and sell casual games for the Wii and DS through a new Wii channel.
  • The Nintendo DS will continue to outsell the PSP in 2007. It will also enable DS<->Wii wireless connectivity, enabling cross-platform gaming scenarios and the purchase of Nintendo DS casual games. It will not enable the download and purchase of full retail games for the DS, however.
  • Apple will expand their gaming efforts significantly. The most likely scenario is investment in iPod and the (soon to be announced) iPhone devices to enable a common game development platform for developers to target. This platform will include WiFi wireless connectivity, user accounts and presence, and the ability to trial and buy content from a games channel in the iTunes store. Apple will not enter the gaming market with a home console of their own.
  • HD-DVD will begin to pull ahead of Blu-Ray in the high-definition DVD format war. This will be measurable by number of DVDs available for either format on Amazon, and total player sales (including the Xbox 360’s HD-DVD add-on and the Playstation 3’s internal Blu-Ray drive).
  • By the end of 2007, total lifetime unit sell-through of home consoles will be led by the Xbox 360, followed by Nintendo’s Wii, with the Playstation 3 third. This order will also be true of units sold-through solely in 2007 (ie, not lifetime sales).
  • Google will show significant public interest in the gaming sector for the first time, including interest in acquisitions to bolster their Ad-sense business. The most likely target will be IGA Worldwide (to combat Microsoft’s acquisition of Massive). If unsuccessful, Google will seek to acquire one of the larger game publishers on the market to gain a foothold in the in-game advertising market. Likely targets include Electronic Arts (though it would be extremely expensive), Activision, or THQ.

Related posts:

  1. To Do: 2007 Predictions and Prognostications
  2. Fun with Game Industry Headlines
  3. U.S. Video Game Console Online Shopping Demand
  4. Disc-free Future for Game Consoles?
  5. Peter Moore on the "The Elite 8": Ways to Confront Elitism and Open Doors for Our Industry

62 Comments

  1. Joseph / Jan 4 2007

    I dunno yet, but for the love of all that is sweet and decent please delete the duplicates when you get a chance :D

  2. Joseph / Jan 4 2007

    I’m not sure anymore. Eveything looks so jumbled that I believe that it is all there.

    Maybe all together it gets blocked.

    Could be it be because I terminate all my sentences with  "Viagra"?

  3. Anonymous / Jan 4 2007

    It’s possible it gets blocked all together if you have too many trigger words – there’s a whole huge list that comes with community server. <shrug> Don’t see any particularly bad. Will leave it up a bit for folks to look over, and delete them later.

  4. Joseph / Jan 4 2007

    It seems best to figure it out. You keep getting blamed for a wonky submit form.

    I thought it might be on total length but even some of the short passages didn’t make it.

    Where is the list of trigger words stored? I’m curious to know if I use too many.

    BTW I’m curious.

    Do you,as in MS gaming, know exactly how many consoles,360, are sold? Is it an internal or external metric?

  5. [RUMOUR] NEW XBOX 360 VERSION 2!!! IT HAS HDMI OUTPUT / Jan 5 2007
  6. Joseph / Jan 5 2007

    Silly rumor there is no way for Ozy to make a comment on this.

    The new features would put it squarly against the ps3.

    I still wonder if the reduced costs of the new chips will offset other changes needed in the xbox. I have no doubt the new hardware will lead to a price drop I just wonder how long until it happens.

  7. microsoft screwing current 360 holders??? / Jan 6 2007
  8. Anonymous / Jan 7 2007

    Re: "I dunno yet, but for the love of all that is sweet and decent please delete the duplicates when you get a chance :D "

    Done.

  9. Ozymandias / Feb 23 2007

    RE: 2007 Game Industry Predictions & Prognostications

    Sounds like that might be the case, according to computerandvideogames.com . Appears that PS1 games will

  10. Ozymandias / Apr 23 2007

    RE: 2007 Game Industry Predictions & Prognostications

    Some interesting news on the net this weekend about Walmart apparently placing a two million unit order

  11. Xbox Live's Major Nelson / Dec 30 2008

    RE: 2007 Game Industry Predictions & Prognostications

    Ozymandias has posted his &lsquo; 2007 Game Industry Predictions &amp; Prognostications &rsquo; in which

  12. Xbox Live's Major Nelson / Dec 30 2008

    RE: 2007 Game Industry Predictions & Prognostications

    Ozymandias has posted his &lsquo; 2007 Game Industry Predictions &amp; Prognostications &rsquo; in which

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