Mistakes Happen: A Look Back at the Gaming Industry 10 Years Ago

The gaming industry moves at a breakneck speed, with companies and developers constantly looking to the future. However, this focus on what's next can lead to a lack of reflection on what has come before. To provide some perspective, we are highlighting key events from the gaming industry exactly a decade ago. One recurring theme in this column is the tendency for major companies and renowned developers to make ill-advised statements and bets. Sometimes, this is due to poor decision-making, while other times it is simply a matter of being wrong about various aspects of the industry. In October 2013, Microsoft and Sony were preparing to launch their new consoles, the Xbox One and PlayStation 4, respectively. Microsoft was promoting its Xbox Live Compute and the power of cloud computing, which was supposed to enable higher-fidelity experiences. However, it would take nearly two years for Microsoft to demonstrate this capability, and even then, it was limited to a tech demo for Crackdown 3. The "power of the cloud" ultimately failed to deliver on its promises, and other companies, such as GameStop and Square Enix, also experimented with cloud technology before abandoning it. Google set up a first-party Stadia studio, only to shut it down shortly after, while start-up Improbable used cloud-powered gaming to build its valuation to over $1 billion before selling off its studios to pursue the metaverse. Sony, meanwhile, was pushing its own second-screen solution, the PlayStation app, which combined basic friends list and messaging functionality with support for second-screen gameplay. However, the buzz around second-screen gaming ultimately amounted to very little, with most games not utilizing the feature. The concept of second-screen gaming did eventually take off, but not in the form of companion apps. Instead, players began using websites and other online resources to supplement their gaming experience. Other predictions and promises from 2013 that failed to materialize include Cliff Bleszinski's forecast that the Steam Box and Oculus Rift would define the next generation of gaming. Steam Boxes launched as Steam Machines in 2015 but were later removed from the Steam storefront navigation. Oculus was acquired by Facebook for $2 billion, but VR remains a niche market. Mad Catz entered the Android-powered microconsole market with the M.O.J.O., which failed to gain traction. Research firm Superdata warned of a potential crash in the gaming industry, citing a saturated console market. However, the industry did not experience a crash, and the PS4 and Xbox One combined to sell over 180 million units. Nintendo, on the other hand, struggled to recapture the success of the Wii with the Wii U, selling fewer than 14 million units. The importance of taking risks and being willing to fail is a key takeaway from this look back at the gaming industry 10 years ago. As Nintendo president Satoru Iwata said, "If you do the same thing as others, it will wear you out. Nintendo is not good at competing, so we always have to challenge [the status quo] by making something new." This approach has led to the success of the Switch, which has sold over 130 million units. The gaming industry is not immune to mistakes, but it is through these mistakes that companies can learn and grow. As the industry continues to evolve, it is essential to reflect on the past and be willing to take risks to drive innovation and creativity.