Square Enix 'predicts death of consoles'

Square Enix chief executive Yoichi Wada has predicted the demise of physical console games and called on the industry to better prepare for digital distribution.

Speaking to MCV, Wada said that the video games industry will be transformed over the next decade, including the potential death of the home console.

Wada stated: "In the past the platform was hardware, but it has switched to the network. A time will come when the hardware isn't even needed anymore."

He further said that console games in their current form will be replaced by an entirely digital distribution, including live streaming and server-based gameplay.

Wada warned that "all the distributors and sales firms will suffer a big negative impact" from this change unless they make appropriate adaptations to their business model.

He believes that the major platform holders, such as Sony and Microsoft, have already started preparing for the transition and so third party publishers must do the same.

In December 2008, Atari president Phil Harrison claimed that the next generation of gamers will shun physical boxed products in favour of digital media.