Are Gaming Consoles The Future for Online Video Delivery?

Are Gaming Consoles The Future for Online Video Delivery?According to a new report from TDG, a leading voice regarding the diffusion of broadband video, game consoles such as Microsoft's Xbox 360 and Sony's PS3 are evolving into multimedia gateways with legitimate non-gaming media arsenals. Armed with the growing video libraries of Xbox LIVE and the Playstation Network, these consoles can deliver on-demand video services with content similar to local cable or satellite TV operators. Though similar efforts have failed (largely because they relied on consumers to buy yet another set-top box), the model and the timing seem to favor the console-based approach.

"There is a bit of a 'value vacuum' developing around today's PayTV offerings," noted Colin Dixon, TDG's practice manager for broadband media and report co-author. "Rising dissatisfaction with service value, the lack of flexibility implicit in tiered strategies, and a growing interest in watching online video on the TV have combined to create a unique opportunity for alternative video services – an opportunity not at all lost on console vendors.”

"Microsoft and Sony know that today's console gamers are perfectly suited for new TV offerings. The segment is dominated by males between the ages of 18 and 35 – a prized advertising demographic – with little sense of loyalty to their 'local' cable or telephone company. They are also heavy viewers of online video and quite comfortable spending money for online digital media. Simply stated, console vendors are inimitably positioned for success in the OTT space because (1) their gaming audience already owns the enabling device, and (2) they are highly likely to already have an Internet-to-TV relationship with the vendor.”

To quantify the extent of this opportunity, Dixon references data from TDG's new report:

  • By 2012, approximately 190 million households will use a next-generation game console;
  • 80% of these households – 148 million – will have this console connected to the Internet; and
  • 75% of connected-console households – more than 110 million – will use console-based video services at least a couple times each week.

The report focuses on the emergence and impact of OTT broadband video via broadband-enabled game consoles and console-affiliated media portals, in particular Microsoft's Xbox 360/LIVE/Experience, Sony's PS3/PlayStation Network/Home, and Nintendo's Wii/Wii Channels and is available at TDG's website.

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About the Author -
Mark Robertson is the Founder and Publisher of ReelSEO, an online information resource dedicated to the fusion of video, technology, social media, search, and internet marketing. He is a YouTube Certified, video marketing consultant and video marketing expert, popular speaker, and considered to be a passionate leader within the online video and search marketing industries. View All Posts By -

What do you think? ▼
  • dreamhunk

    here is the real truth

    http://www.clickz.com/clickz/column/1706187/online-games-redefine-gaming

    sony and micro soft is trying to compete with pc gaming

    the pc is so much more and better

  • james braselton

    HI THERE NO GAMING CONSOLE WILL NEVER HAVE FAST ENOUGH DRIVES TOO HANDLE THAT KIND OF BAND WITH THEY NEED A SOLID STATE FLASH DRIVE A 10,000 OR 15,000 RPM HARD DRIVE OR LASER HARD DRIVES AT 160 TERABYTES PER SECOND THEY BEARLY CAN HANDEL THERE CURENT VIDEO GAMES FASTER DRIVE TECHNOLGIES NEED TOO BE INVENTED

  • http://www.christophor-rick.com Christophor Rick

    Speaking as a Games Journalist, it's already happening. Netflix is available on Xbox 360. I watch videos from my DVD drive in the unit and video clips from my USB flash as well.

    Looking at the PS3, built-in Blu-Ray Drive, downloadable movie service for both it and the PSP.

    An SSD, and 10-15,000 RPM drive is not a necessity. Considering that the video games are made specifically to use the hardware available your comment about them 'barely handling' the games is baseless.

    Entertainment in the home is merging. In fact a new service OnLive is hoping that even games will be streamed. If that's possible then there's no reason that films couldn't be streamed in real time…it's called digital cable, movies on demand, satellite on demand etc…

    It's only a matter of time as gaming becomes more mainstream it will merge into an acceptable part of home entertainment, already has, and will incorporate other forms of entertainment as well.

  • james braselton

    HI THERE VIDEO ON A CONSOLE IS A BAD IDEAR THATS WHY YOU HAVE A DESKTOP OR A LAPTOP OR A NETBOOK AND WITH THE CAP AND TRAD HARD DRIVE CONSOLES JUST HAVE TOO MANY EMISSIONS THE EMISSIONS YOU WILL HAVE TOO RUN SSD SOLID STATE FLASH DRIVES OR SOME FLASH MEMORY WITH LESS CAPACITY TOO MEET THE CAP AND TRADE EMISSIONS HARD DRIVE CONSOLES WILL BE BANED WITH IN 5 TO 10 YEARS

  • james braselton

    HI THERE CAP AND TRADE EMISSIONS SOO WE GOT GET THE PS3 AND XBOX TOO USE LESS ENERGY THEN YOUR TOASTER OF TODAYS POWER CONSUMPTION FROM SSD SOLID STATE FLASH DRIVES TOO TURBO MEMORY CO2 CAPTURE BIO FILETERS TO SUCK IN THE GREEN HOUSES GASES WITH IN 50 YEARS IN 2050 TOO MAKE CONSOLES RUN HIGHER VOLTAGES

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