Cloud-based Computing Will Change Everything

Whether or not Sony's in the console business in a few years might actually be irrelevant if server-side gaming like OnLive or David Perry's Gaikai actually works and takes off. The “console business” may cease to exist and instead people may be buying into proprietary networks that provide customers with set-top boxes to access those networks for a monthly fee, just like your cable bill. Could Sony be successful in this arena with PSN? Sure, but Microsoft will be right there as well with Xbox Live (and perhaps OnLive too if they acquire the company as many have predicted). If the industry is headed in this direction, then it only stresses how important Sony's software development will be, as content is king.  We think this really is the ultimate future of the games industry as video games move away from packaged goods and towards services. Exclusives will still matter – Sony's cloud-based service would have exclusives like God of War, while Microsoft's would have Halo, etc. – but in the long run, this too will change, as consolidation sweeps through the new “games as services” industry and we're left with just a few providers. Are certain channels exclusive to specific cable companies or satellite providers? Yes, but most channels are available from most cable/satellite firms, and we'd expect the same to be true for games in most situations.