The decline of gaming consoles

4 January 2025

For decades, a console beneath your TV was a fixture in every gaming household. The promise was clear: high-quality graphics, smooth gameplay, and ergonomics tailored for immersion. But the world of gaming is shifting, and consoles are starting to look like relics of the past. The reasons are simple. Miniaturization has made it possible for smaller devices to achieve feats once reserved for bulky hardware. The Nintendo Switch 2 reportedly matches the specs of a PS4—hardware that only a few years ago was the pinnacle of console gaming. Meanwhile, modern smartphones, like the iPhone, are approaching the point where they can run AAA games.

This undermines a key advantage consoles once had: performance.

The only thing consoles still do better is ergonomics. A dedicated controller is inherently more comfortable than a touchscreen. But even that advantage is disappearing. Third-party controllers now turn smartphones into gaming machines. Portable. Powerful. Familiar.

Let’s take a step back.

What makes a great gaming experience? It’s not just specs. It’s a mix of story, art, graphics, and how the experience feels in your hands. If you draw a curve plotting user experience against hardware specs or ergonomics, you’ll find diminishing returns.

Improved graphics don’t create a proportionally better game. Neither do faster processors.

Consoles are getting stuck in the middle.

They aren’t as powerful as a gaming PC. They aren’t as portable as a smartphone. And as lower-power devices like phones rapidly improve their graphical capabilities, the gap between console and mobile gaming becomes harder to justify.

What’s left for consoles to offer?

Exclusive games? That business model has long been under pressure. The very notion of a console as a gatekeeper is losing relevance. Game developers are less dependent on Sony, Microsoft, or Nintendo for distribution. And as consoles decline, we could see a fragmentation—or liberation—of the gaming industry.

AAA games may no longer need to pledge loyalty to PlayStation or Xbox. New platforms might emerge. New business models too.

Gaming used to be about hardware wars. Now it’s about ubiquity. A world where games can be played anywhere—and everywhere—will render the console obsolete.

Though, personally I hope, not for a few more years. I love having a controller standing by next to my tv to entice me to play when I get tired in the evening, and just want to tune out.

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