:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/metroworldnews/MN74OBHYHRHXHPAYVEAZA24BSI.jpg "This is why consoles are the future of gaming and will mark the end of gaming computers")
Probably many expected it, but the reality is what it is: gaming computers are destined to die and the video game industry will be completely dominated by consolesgood news for manufacturers Sony, Microsoft, Nintendo and others, but bad news for those who sell PCs and components like graphics cards.
What are the reasons for experts to come to this conclusion? It’s all about the cost structure and a report published on the website of hardzone explains it in more detail.
The uncompetitive price of graphics cards
The reason why consoles will dominate the industry is due to increases in the price of gaming computers and graphics cards.
One advantage that consoles have is that they tend to be sold at a “loss,” since the main way to make money from them is through royalties on video games. Even so, they rarely see increases in value and even stores regularly offer discounts to access them.
Although powerful graphics cards are sought after by gamers, the manufacturers of these components still pretend to think that they are aimed at the general public. Someone who doesn’t game doesn’t need a powerful graphics card.
Why is the price of graphics cards so high? There are several points. On the one hand, AMD, Intel or NVIDIA design, but do not manufacture the chip: they buy the card and then design it. In addition, the graphics memory provider and the card assembler also come into play. A snowball and costs that can lead to a retailer ending up selling a graphics card for as much as $400.
Compared to manufacturing consoles, which are a complete device and not just a component, the cost structure is different. Manufacturers act as assemblers and pay for an exclusive design to AMD, NVIDIA or AMD, who take a royalty per unit sold, but the creator of the team is the one who asks to create the chip.
The cost structure of the consoles and their prices are going to lead the graphics cards, and therefore the gaming PCs, to an imminent grave. Nobody knows when, but the trend is that computer gamers are switching to consoles.
