PC streaming is not a new technology. Rather, it is the same remote desktop technology that Windows, Mac and Linux computers have possessed for years, which allows other computer users to remotely view and control other computers.
Yet OnLive, a company that specializes in streaming games over the Internet, recently made playing high-end, graphic-intensive games on lower-end PCs, smartphones or tablets a popular reality. OnLive runs the games on its own high-end hardware, then streams the video feed of the game back to the gamer over a high-speed connection. The gamer’s key presses are then transmitted back to OnLive’s servers, creating a cloud-based gaming experience that doesn’t require high-end graphics cards.
NVIDIA Corporation (NASDAQ:NVDA)’s PC-streaming technology utilizes the same technology, but requires gamers to install the PC games on their own computers, which must be equipped with higher-end graphics cards such as its own GTX 650. The games are then streamed over a local area network or across the Internet to allow gamers to play higher-end games such as Assassin’s Creed 3, Borderlands 2 and Batman: Arkham City on the Shield’s handheld screen. In this respect, the Shield is similar to Nintendo’s Wii U, which can play its console titles remotely on its controller’s second screen, as long as the gamer stays in range of the console.
In other words, the Shield gamer’s home PC must be turned on, an Internet connection must be established, and the PC cannot be used for any other purposes while the gamer is streaming the game – a clumsy experience that makes the Wii U’s portable screen experience feel streamlined by comparison.
The Foolish Bottom Line
Therefore, the Nvidia Shield is destined to fail due to its high price, bizarre form factor and limited software selection. While the Shield might be used by some consumers as a media center, thanks to its HDMI connectivity, or become an all-in-one homebrew and emulation device for hobbyists, it is unlikely to achieve mainstream popularity, simply because gamers are already accustomed to Nintendo and Sony Corporation (ADR) (NYSE:SNE)’s more established consoles. Meanwhile, mobile gamers are more likely to stick with their smartphones and tablets for Android gaming.
If the Nvidia Shield fails, it wouldn’t be a devastating loss for the company, since it only reportedly spent $10 million on R&D for the product. Yet I’m baffled as to whom the product was intended for and why NVIDIA Corporation (NASDAQ:NVDA) felt the need to challenge Sony and Nintendo, when it should simply concentrate on churning out graphics cards and mobile CPUs.
The article Why This Gaming Console Is Destined to Fail originally appeared on Fool.com and is written by Leo Sun.
Leo Sun has no position in any stocks mentioned. The Motley Fool recommends Google, Nintendo, and NVIDIA. The Motley Fool owns shares of Google. Leo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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