And the companies that owned a gaming platform made money through licensing fees, which third-party game developers pay for the right to make games for the company's console.īut now this comfy arrangement is getting thrown out of whack by a new wave of emulators - software that in effect allows one kind of machine to impersonate another. Consumers benefited since competing formats spurred the advancement of video game technology. The game industry has grown up around successive generations of hardware, like the original Nintendo game box or the Sony PlayStation. That's the strangely inefficient model under which the video game console business has always thrived. Imagine buying a "next generation" audio CD player - that doesn't work with your present CD library - every four years or so.
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