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Acer Plans to Develop “Open-Standard” Game Console

Acer Wants to Challenge Microsoft, Nintendo and Sony

by Anton Shilov
03/18/2008 | 08:07 AM

Acer, a leading maker of personal computers, said at a press conference recently that one of the projects that it was working on was an open-standard video game system. The company did not unveil any details about the potential product, but stressed that its device will compete against Microsoft Xbox and Nintendo Wii.

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“If you look at most of the other game machines that are out there right now – Nintendo’s [Wii], [Microsoft’s] Xbox – they are ‘closed’ and proprietary systems,” complained Acer’s senior vice president James T. Wong in an interview with Beta News web-site. Therefore, the company sees a success opportunity in a game console based on open standards.

The high-ranking executive of Acer said that beyond “openness”, all of the Acer-branded systems being eyed right now, including the game machine, are envisioned as offering new and innovative form factors and applications.

There is a significant difference between proprietary gaming systems and open standard gaming systems for gamers: the cost of games. For example, Electronic Arts’ latest Need for Speed: ProStreet for PC costs $29.99 at Amazon.com, Xbox 360 version is sold for $42.99, Nintendo Wii version is priced at $49.99, whereas Need for Speed: ProStreet for PlayStation 3 is available for whopping $59.99, two times higher compared to PC version.

Theoretically, a game console which developer does not charge huge royalties for the ability to develop and sell compatible games may allow video game makers to sell their titles at a lower price. However, the question is whether the creator of such game system is able to sell it at an affordable price-point while offering decent performance and feature-set. Usually game consoles are sold at a loss and then their developers earn money on games and royalties. Acer’s business model is based on selling hardware at a profit.

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