Posted by: seanmalstrom | August 18, 2012

Email: Onlive Implodes

http://www.engadget.com/2012/08/17/source-onlive-undergoing-acquisition-in-wake-of-dire-financials/

 
$5 million dollar a month operating costs? What, you mean rendering and streaming highest definition modern gameplay to thousands of people simultaneously at bare minimum is expensive?
 
This is what I don’t understand about tech companies. It seems like they just think ‘We can make a desirable product,’ and then marvel at themselves when they actually do. But frequently the cost of said ‘marvelous product’ to research, develop, and then bring to market is just as shocking as the product itself. Just because they can create demand for a thing they can dream up and create, they then coerce investors into financing well before the technology is in place to make a desirable product at a desirable price, which is, of course, the confluence of price and demand that actually has a chance at generating peak success for a product or content proposition.
 
The Wii, a new-fangled, futuristic-seeming technology in 2006 seemed to be priced perfectly upon launch because it was much cheaper than its competitors and impressed in a different, more approachable way. A similar thing happened with the original NES, its multiple packaging variations, and Nintendo’s marketing ability to overcome the home console stigma of that post-Atari crash era. A ‘tipping point’ or ‘sweet spot’ or whatever you want to call it was hit in terms of balance between the things people consider when spending money/time on/with a product: value and cost. 
 
Anyway, that’s not how the companies seem to think any more. They are tireless entertainment science laboratory researchers, performing a valuable service to mankind by producing such incredible, imaginative new electronic work. They must think of their three-dimensional slider as a gift to human kind, like the statue of David or the Mona Lisa. Like people will say in history books in one-hundred years – ‘…shortly after that event, Nintendo was the first to produce the analog autostereoscopic depth glider.’ The scientific Prometheus of the world! Listen to Miyamoto: ‘I want to make things to use in school. I hope this kind of device will replace computers! I imagine a time where people wouldn’t wear clothes, but Nintend-clothes. Humanity will benefit when there are astronauts using Nintendo equipment in space. My dream is to create a new kind of time telling device that would replace watches and cell phones.’ And on and on. 
 
‘People actually LIKE the 3D because its what they really see! You don’t realize you like it so much! Until now, that I’ve told you that you do, of course!’
 
That’s the honest truth, Master Malstrom – it isn’t that we aren’t being provided with what we consider to be gaming value and we are given prices for our paltry consolation prize consoles that thusly seem steep, it’s that we don’t understand that we actually LIKE what we are being spooned! Now we know! Think how much fun playing Mario Galaxy 2 and Link’s Crossbow: Other M Tennis now!The story is pretty interesting. OnLive is laying off 50% of their staff and trying to get bought. This was not how things were supposed to go. OnLive was to have destroyed all the game consoles by now while we were to be connected to ‘the cloud’.And every time I mention ‘the cloud’, I must include the video of ‘Up, up and Away’. So much for the Cloud hype…


Above: If the OnLive investors watched this video every time they heard about ‘The Cloud’, they would not have lost so much money…

I decided to check to see what everyone’s favorite analyst, Michael Pachter, had to say about OnLive. I do not think the reader will be surprised…

Pachter uses OnLive as Example For Maybe Hologram Gaming in the Future

Watch that. Hahahahhahahahahahahahahaha. I’ve never laughed so hard. How can there be so much wrong in such a small concentrated amount of space?

Pacther calls OnLive Cloud desktop as the biggest thing at CES

You just can’t make this stuff up.

Pachter predicts no new console cycle as everything will go cloud.

There are no words…


Categories

%d bloggers like this: