12.26.2008

The Gaming PC As We Know It Is Doomed: Part 2



A couple of days ago I posted an article about how the Gaming PC as you know it is doomed to fail, and I have received many comments on it.

I have received many positive messages and a few negative ones. The negative reactions seem to be coming from other smaller PC companies. I would like to start by asking that instead of blindly flaming me and posting anonymous comments everywhere drop me an email or post a comment with your real name and company so we can talk about any issues you may have. 

I have always held an open door of communication even with my direct competitors. I still receive emails and calls on a regular basis from many of the good boutique companies out there and have always considered possibilities of working together down the road.

I want to make sure a few things are clear: I wrote "I am not saying PC gaming is doomed, because it’s not—far from it—but the PC with four GPUs, a 2-kilowatt power supply, 16 gigabytes of memory, and a stack of hard drives is all but distant memory, at least for the PC gamer."

I stand by the above statement. We (Voodoo/HP) do not currently sell purpose built gaming PCs with such ridiculous requirements. While the Omen is expensive and extremely powerful - we still limit the hardware selections to stable reliable configurations simply because we ship these machines around the world and we don't want someone buying a desktop experiment. The Omen is not just a mish-mash of specs, therefore the price is not built up based on the hardware choices in the system. There is an extremely limited market for such a PC and only a few system builders can claim to play in that particular space. That said, I believe this market is getting smaller and smaller - especially in light of the current economic situation. 

Many factors are bound to change the way we do business. Customers are way more dependant on technology than they once were - they expect more for less - they want things that are easy to use - most people don't like noise - and more and more people are concerned about the environment. There are also other external factors that are influencing their buying decisions.

I do believe the high end personal desktop will change - and you will see at least one new fresh direction in the extreme high end space later this year. 

As well, I am convinced that the average performance PC needs to change directions. Much of the hardware has become extremely cumbersome and unreliable. It's time to take a step back and look at the big picture and re-think the way performance PCs are built. I'm speaking mostly to the small companies out there who work 24/7 to stay afloat - because I do believe there is a strong need for "boutique" companies to stay competitive in order to keep things interesting. 

I also want to be very clear about something else. Voodoo started off as a one person operation. We built a very healthy and strong business over the years, starting by hiring friends - and friends of friends. I turned screwdrivers for years, I still build PCs for fun whenever I get a chance. I keep meeting new people at HP who say that Voodoo helped to change the way this company thinks about new product designs, and we're seeing more cool products come out from various areas of the company. Personally I respect anyone who has started from the ground and created something worthy of a name. Thus I would say that we are very supportive of small businesses and big thinkers. 

I respect what small businesses have done for this industry. Small businesses fight to stay alive - good ones inspire and survive long term building incredible brands. Those that take advantage of their customers and bash their competitors rarely survive - but those who will do everything to help their customers and promote their strong points will stay strong. 

We created a pretty cool new product that we're showing at CES in January. I can share more details later, but the bottom line is I'd love to see this style of product help to inspire a new standard of PC. When you see the form factor, when you see the way we laid it out, and the thought process that went into it you may be inspired to dream up new and unique designs.

In an ideal situation ATX would finally come to an end and a new form factor would take place. ...and even though we're a giant company and historically HP has done everything internally, I don't believe it makes sense for us to carry the weight of something like this ourselves. I believe if more people are interested in the vision then we should work together to help move the industry.

Anyways, I wanted to wish all of you, including the flamers, the best for 2009.  It's going to be an interesting year - and I'm really looking forward to it. Once again my virtual door is always open, feel free to email me anytime and take care.

18 blogger comments:

Anonymous said...

new pc at ces eh?
we all know what that is...
hint hint - firebird...!!
looks great though... hope i can say the same for the price :)

Oat said...

Great post, I greatly respect your ideas of the future of this market. I will be looking forward to seeing you and your new products at CES.

Anonymous said...

You article is good, i would agree with you. Small companies shouldn't be blaming you. Small companies should be blaming the Hardware companies,media, Game devs and publishers. They are the ones who want the pc market to die after all.

I mean look at the kind of statement made by game devs such as Lucas arts,Epic games,Id soft ware etc for example.

http://pc.ign.com/articles/858/858259p1.html

I mean you hear pc gaming is going to die every year

Robert Godlewski said...

I'm not a business owner of any kind at the moment, I can only talk from consumer's standpoint.

Firstly, I would like to say that paying $50 and upwards for a single game that I would play for literally a week or two at most is ridiculous. Couple that with the extreme costs of owning (or upgrading) a gaming PC, and I have an invisible brick wall standing between me and a legitimate copy of a game. Heck, let me tell you something. I actually paid for Crysis Warhead (only because Crysis was such an awesome game) and when I popped the disc in, and after a good 10 or so minutes, the game started closing with an error. I figured it had to be something with either my OS or any of my hardware so I decided to reinstall Vista. Heh, same shit happened the next day. I went ahead, bought another 2GB of ram (making it 4GB total) and voila! Warhead worked perfectly fine. But look at it this way.. $50 for the game itself plus $50 for a RAM upgrade plus whatever the cost of my PC is A LOT more than my PS3 combined with all it's games, and believe me I have a lot. Moral of the story, it just makes more sense to go out and spend $500ish for a PS3 and a game versus spending upwards of $1.5K for a gaming PC.

Secondly, there are problems that plague the computer gaming PC platform. For example, take a look at this article:

http://www.msnbc.msn.com/id/7652606/

Taken straight out of there, one guy said, "Instead, more questions: Does the PC have an adequate graphics accelerator card? Are all the display drivers up to date? What about Direct X? RAM? Sound card?"

If you take a look at today's lineup of console, all that matters is how you connect it to your TV. And once you do it, it works, for as long as you need it to work. Making a PC work is a whole different story.. its more of a friggin Lego sculpture than a working machine.

Third and last, and this is related more to today's piracy problem than to the gaming PC one, but nevertheless, I think PC games should be a lot cheaper and more readily available. Yeah, I know console games cost just as much but you're getting something more when you buy a console game versus a PC game - and that is the luxury of popping in your game and knowing it will work. A good price for any PC game if you ask me, is around $30. Yeah, that might not seem as much from a game developer's perspective, but that's the only reasonable way to combat our every growing problem with PC game piracy. If we use a Steam-type way of distributing games and couple that with significantly lower prices, I think that will make consumers think twice about pirating games.

Given this, I have a great deal of faith in the PC gaming market. It holds many advantages over its rival, but much of that is hidden behind an invisible brick wall. I think the gaming PC market, along with the average consumer PC market is a total fuck up at the moment. Everything is broken up into smaller pieces, and getting a PC is not like getting a console. I can go to the store and get an xBox 360, PS3, or even a Wii for that matter and know that once I unpack it, it will run every game out for it. I don't have to look at it's specs, connect a plethora of stupid cables, read a bunch of crappy manuals that are more of a foreign student's English notebook than a reference book, and do some other stuff that I simply wouldn't need to do when getting a console. This market requires a pause and a huge meeting between all of today's PC companies. Otherwise, there's no way it's going to work the way we all want it to work.

Anonymous said...

where is all of the pc games at E3? why are there no hardware companies at E3?

here I have links people should look at


http://ve3d.ign.com/articles/news/39622/Microsoft-Explain-PC-Game-Release-Delays

http://blog.cameronharris.org/2008/11/microsoft-are-killing-pc-gaming.html

Small companies shouldn't be blaming the messenger.

Rahul Sood said...

I think the future for PC Gaming is strong. PC Gaming can be more profitable, easier to distribute, and quicker to access and expand the market. You will see more efforts to make this happen.

The article is speaking mostly about stupid hardware requirements to play games. We have a far better solution, and I believe it should be a standard.

MrBrightSide said...

Heya Rahul,

we all can agree and we all can disagree. Sadly, I disagree with your points, because of the exclusive nature.

If this industry has taught us anything, that is that this industry is all-inclusive.

My complete opinion can be read at:
http://theovalich.wordpress.com/2008/12/31/we-live-in-a-different-world/

Anonymous said...

Let me summarize those anonymous comments:

HP bought Voodoo PC and ran it into the ground.

Hardware is only a small part of the cost of a very high-end gaming PC, as you well know. The major cost is QA and support.

When HP bought Voodoo PC they thought they could continue to sell the same hardware at the same prices (HP saved money on the hardware due to economy of scale), eliminate the quality testing and support, and make buckets of money.

They thought wrong. Customers knew what they were paying for and abandoned Voodoo PC in droves.

Rahul Sood said...

They thought wrong. Customers knew what they were paying for and abandoned Voodoo PC in droves.

Hmmmm, could have fooled me - year over year growth since the acquisition has been exponential. Sounds to me like a competitor's wishful thinking...

Anonymous said...

Rahul,

I have been watching your article (opinion) evolution throughout the years and I can tell you for sure, If HP did not buy Voodoo, this article would not have existed.

You have been institutionalized Man! Your opinions nowadays seem to come from an HP man rather than a Voodoo man.

Be true to yourself.

Rahul Sood said...

I have been watching your article (opinion) evolution throughout the years and I can tell you for sure, If HP did not buy Voodoo, this article would not have existed.

You're probably right Anonymous - if we hadn't executed on the brilliant business strategy which we created years ago I'd be writing a private diary instead of a widely read blog...

It would probably read something like this:

Dear Diary, I'm really having a tough time here. The economy is a mess, we're losing money like crazy, I'm pissed that we never followed the strategy that I thought about years ago. On top of that I'm secretly jealous of my competition. What the hell are we going to do now...? I wish I was sitting on a lake in Seattle dreaming up new products - enjoying life - rather I'm busy scraping up enough scratch to throw a mediocre new years eve party with a couple of friends, again.

---------------------

Yep, that's probably what I would have been doing.. Thankfully I worked hard to help get us where we are today and as much as you'd like to believe otherwise I have not and will not look back... It's a damn good thing we actually had a strategy, we knew what we needed to do to grow the business, we put our heads down and built one of the best brands out there. Now we're sitting in a very strong market position with a multi-billion dollar research budget and we're making decisions and moving the industry.

Phew... Thank God for that...

Peace out for 2009.

Be true to yourself.

I keeps it real son!

JeffT said...

Once again Rahul you are bang on. I assume based on the musings by a couple of your competitors your position is correct and they are doing whatever they can to discount it. Almost like the Republican party admitting defeat and learning from their mistakes, not likely to happen.

Ed Borden said...

That diary post was hilarious, definitely classic.

If I had one ounce of business acumen in my body and had a brilliant business strategy that I didn't execute on years ago, I'd write a diary like this:

"Dear Diary, I cut my birthday cake today with an Envy and posted it on my blog because I'm secretly jealous of my competition. I wish I had billions of dollars in R&D to flush down the toilet, because I've got this really great idea for a new laptop that doesn't have a screen attached to it and isn't mobile. We could charge a ton for this thing and call it the f1r3b1rd (using numbers instead of letters, brilliant!). Instead I'm sitting here in a Jersey slum, trying to fend off the crack-fiends on the corner. Freakin economy..."

Anonymous said...

lol@dickborden

brianj said...

Its pretty clear by the bordin blog that he either (a) wants to be you, or (b) thinks he's you, or (c) is jealous of you guys. Good job on that Firebird dude it's really really nice!! Nicer than I thought it would be, and awesome price!

R Valley said...

In response to the “blog” that Ed put up I am probably giving this more attentions than he deserves. He claims to run in circles of boutiques…odd that I never met him but did get the chance to work with all the real players (barely one I don’t know) and even more of the up an comers. Maybe he got invited to a Gartner Channel event or Comptia drink fest and now has an opinion because the computer he built for his Aunt Marcy and Uncle Dick didn’t crash on first boot? I’ve got out of the industry for a about a year or so and it appears the Widow PC’s of the world will open a free lame blog, slam the “competition” and claim relevance in the industry through negative endorsement.

So while PWNING 9-5 obviously spends 5 to 9 get meals prepared for mom, hangs out at online Digg parties, and uses his photoshop skillz he attained at the something awful forums, Rahul continues to lead the voice of the system builders he has served to compliment, compete, and energize into making a better community. Ed’s crappy blog can find its way to the 4chan kids who will snicker and then convince their folks to pony up for a Firebird. I know you built the Envy Rahul, but I didn’t know it included penis envy…good job on the new system and keep being the voice that shuts guys like this up every few months. Action speaks louder than words and you don’t’ have anything left to prove….cya at CES! 

jp said...

lol i wrote this on edbordens poor excuse for a blog,& he deleted it.

i told him that its pretty clear that he is obsessed with rahul & that he should ask rahul for a job because he will probably need one soon. you hiring rah?

Kero said...

Problem with pre-builts is upgrades :( I live in the UK so I'm pretty sure the $1799 price tag would translate horrifically over here. I love the flexibility my own-built system gives me, and swapping out parts from my main rig to my secondary ones when I upgrade is satisfying, as I feel the hardware isn't being wasted, and it allows me to build cheap/free PCs for my family and friends.

I rarely buy in new hardware, and prefer to game on a smaller monitor with a lesser card and still enjoy my gaming experience.

PC gaming is evolving, mods are getting better and better all the time and making the same game engines work miracles years after they were released at virtually no performance cost.

The major manufacturer who I feel is most guilty of a lack of innovation is nVidia. I currently use an 8800GT, which as far as I can tell is the last good bang4buck card they released, whereas each successive generation of ATI's is a massive improvement on the last at a relatively small percentage price increase.