Those of you hoping to sell off your old Xbox 360 or PlayStation 3 if and when you upgrade to the next generation of systems might need to hold on to that hardware. Electronic Arts Chief Financial Officer Blake Jorgensen recently said he doesn't think the new consoles expected this year will be able to play software from their predecessors.
"An important thing to remember is that next-gen consoles will most likely not be backwards compatible… And if you [play] multiplayer on a game, you'll most likely not be able to play with someone on a different generation" Jorgensen said to investors gathered at the Goldman Sachs Technology and Internet Conference (as transcribed by Gamasutra). Because of this potential outcome, Jorgensen added that the company would likely continue to put its main focus on the current generation of consoles for this year's lucrative sports releases, which need to come out before the new consoles' holiday launch to stay on track with the sports season schedules.
The PlayStation 3 was originally backward compatible with all previous PlayStations, but subsequent units have slowly eroded the ability to play software designed for the PlayStation 2. The Xbox 360 plays certain games made for the original Xbox through software emulation.
The PlayStation 4's rumored x86 architecture would likely make it more technically difficult to run software from systems with different architectures. Meanwhile, reports suggest a new wireless protocol will mean Xbox 360 controllers won't be compatible with the next Microsoft game system.
Would lacking backward compatibility actually affect the market for new hardware? Early adopters tend to rate backward compatibility as a highly sought feature, but as a new system ages, the bulk of consumers tend to eschew aging software for older systems in favor of new games. Then again, there is at least one scholarly study suggesting backward compatibility actually contributes substantially to a system's success, at least as far as portable consoles are concerned.
While Jorgensen said he couldn't talk directly about the much-discussed used game capabilities of Sony and Microsoft's next systems, he did suggest ubiquitous Internet connections will eventually put a squeeze on pre-owned sales. "I will say that the trend in the business is to have that always-on connectivity and connect with a customer, and to the extent that the software identifies a certain customer, is going to create some issues going down the road in the used game market."
While Jorgensen said he'd love to live in a world where game makers could sell games at full price without having to compete with used games, he realizes used games provide liquidity that helps move more new games.
He also suggested upgrading game engines like Frostbite to new consoles would not be a huge cost, because high-end PCs have already pushed the needed performance for those engines much farther.
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