Friday, August 10, 2012

Will Tablet Gaming Edge Out Game Consoles – NASDAQ:NVDA, MSFT, EA

Gaming consoles may well be a dying breed. The last time there was a buzz and excitement about these devices was in 2005 and 2006 when Microsoft Corporation(NASDAQ:MSFT)’s Xbox 360 was followed by Sony's PlayStation 3 (equipped with Blu Ray technology) and that together with Nintendo's Wii kept gaming enthusiasts glued to their screens.

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But there has been total silence from these companies over the past six years and while there are hushed whispers of a new Xbox and a `slim' PlayStation it does not seem like they will be here anytime in the near future.

Because the future is here and it is in the tablets.

Forbes, which did an analysis of this trend, observed that the current cycle of traditional game consoles - usually it lasts about five years - is the longest in history.

Game developer Crytek's founder Cevat Yerli told VG24/7 - “The current generations are drying out and the longer we wait for the next generation of consoles, the higher the likelihood that they could fall behind tablets in terms of being the first thing people reach for when the time comes to play games."

Customers are now hooked on to tablets and it looks very much likely that the action will soon be shifting there. Apple's iPad has 62 percent of the tablet market globally.

Graphics chipmaker NVIDIA Corporation(NASDAQ:NVDA) is in the forefront of the tablet games revolution. Its new Tegra 3 chip is specifically meant for playing mobile games. Then there are others who are also rapidly retooling their capabilities to deliver near-console experiences on tablets.

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Examples are MadFinger Games' Dead Trigger and Phosphor's Dark Meadow. The animations, dynamic particle effects are as good as they are on consoles. Electronic Arts Inc.(NASDAQ:EA) Mobile will soon launch Real Racing 3, whose trailers suggest it could give console-racing titles a run for their money.

Because of their portability and size people spend more time with their tablets than on laptops and desktops. And playing games on their tablets seem to be a primary way of entertaining themselves.

With more Android powered tablets entering the market, the trend is only likely to increase further. This is what Nvidia is looking to cash in on.

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