Why Sony'll Win the Next Gen Console War

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Yes, the argument can be made that for the price of the PS3 gamers should be entitled to free online gaming, but we think this is a great move on Sony's part nevertheless. With the inclusion of free online play, publishers know that anybody in the PS3's install base can go online. Not only does that automatically encourage developers to make use of online functionality, but it also could have important ramifications with regards to in-game ads that are streamed online. All of a sudden the potential audience for these ads is that much bigger, while on the 360 publishers of online titles with streamed in-game ads will still be limited to the number of Xbox Live Gold subscribers. Ultimately, we think that Microsoft will have no choice but to go free as well (perhaps with some ad-supported scheme with the help of MS-owned Massive Inc.), even if it's not for another couple years.

Final Thoughts

New console launches are often some of the most exciting periods to witness in the video game industry and we can't wait to watch it all unfold. This industry is poised for some tremendous growth in the years ahead, but we still believe it'll be Sony that'll maintain a leadership position and will lead the charge forward.

We don't expect Sony to dominate the way it did with the PS2. Certainly the first six to twelve months could be rough going for the PS3 as Sony deals with ramping up its manufacturing, but at the end of the day Sony will have done the "impossible" by winning three console generations in a row.

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