This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Did CES Just Kill the Old Video Game Console?

Stocks in this article: MSFT SNE ATVI TTWO

PORTLAND, Ore. (TheStreet) -- The gaming console as we know it just went on deathwatch.

During the 2013 Consumer Electronics Expo, we predicted that physical games would be in serious trouble thanks largely to devices such as the NVIDIA Shield, which gave users a way to play full-bodied console games from cloud-based services such as Valve's Steam without using a PC or a big console that had to read discs. By the time the Electronic Entertainment Expo rolled around last summer, Microsoft and Sony placed streaming and downloaded games at the center of their Xbox One and Playstation 4 consoles while giving disc-based games enough lip service to briefly postpone their demise.

On Monday, Valve just kind of giggled at that response. After consumers around the world spent this holiday season buying up more than 4 million PS4 consoles at $399 a pop, 3 million Xbox One systems for $499 and enough Nintendo Wii U decks at $250 to $330 apiece to bring total sales to more than 5 million, Valve just announced partnerships with third-party developers that could either send console prices plummeting or, just as frightening, eliminate the need for new consoles altogether.

Sony responded by introducing its Playstation Now streaming service through recently acquired streaming company Gaikai. Gamers will still need a PS4 to play that console's games, but Kotaku says they can now stream games for the Playstation 1, 2 or 3 onto Bravia televisions, Playstation Vita handhelds and on tablets and smartphones. It just made casual gamers aware of something PC gamers from Steam users to Nintendo Entertainment System ROM players have known for quite some time: The console isn't a necessity. 

Valve's all too aware of that. After spending a year doing a trial run of its so-called Steam Machines program with 300 beta testers on first-party consoles, Valve let it slip to Engadget just before CES 2014 that a whopping 14 companies would be producing machines designed primarily to play games through its Steam streaming service. Those names include iBuyPower, Digital Storm, Alienware, Falcon Northwest, iBuyPower, CyberPowerPC, Origin PC, Gigabyte,, Webhallen, Alternate, Next, Zotac and Scan Computers.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs