Sandy Duncan knows his stuff as he used to run Microsoft European Xbox business; so when he says that the dedicated gaming device market is going to whither in the next 5 to 10 years, one might better pay heed.
He said that "The industry is fundamentally driven by technology. I think dedicated games devices, i.e. consoles and handhelds, will die [out] in the next five to ten years."
Duncan also added that "There's hardly any technology difference between some hard disc video recorders and an Xbox 360, for example .... In fact in five to ten years I don’t think you’ll have any box at all under your TV; most of this stuff will be "virtualised" as web services by your content provider."
He cites the rapid growth of high speed internet connections as another nail in the dedicated gaming console coffin and points to the rise of virtualised computing as the last piece of the puzzle.
Unfortunately for Duncan, this has been forecasted time and time before.. Even Electronic Arts, the game maker, predicted that Consoles would be instinct within the next 15 years citing increasing frustration amongst developers and consumers alike.
Unlike the computer gaming business, game console manufacturers also happen to develop games for platforms they built, making it a more integrated environment.
Plus gaming consoles do only one thing : Play games.