[Story via Mashable]
The console gaming industry is facing major hurdles when it tries to compete with mobile apps that offer cheap or even free games. Sales of console games have been in a decline over the last four years. In April sales of both software and consoles were down 25% from the previous year.
Sony has just fired the first shot in what could be a price war when it announced that it will be selling the PlayStation 4 for $399. This is one hundred less than Microsoft’s next gen console, the Xbox One.
The decline of the console industry is being caused by the rise of mobile apps that allow the user to play a game for free. Additionally the development of console games are incredibly high. The average cost to develop a new game is a staggering $20 million. The cost incurred with developing console games is causing developers to be more conservative and less creative in their development of new games. A game that is developed by a mobile app is able to be developed much more cheaply. This gives mobile app developers an edge as it also allows them to be more creative and risk-taking in the development of new games.