The next-generation winner won't be determined by the company that has the best graphics, best controller, or best version of Grand Theft Auto. No, it will be decided by the platform that creates the best community.
Take a look at websites such as YouTube and MySpace and you'll quickly realize user-created content is the future of entertainment. There are two elements that will fuel our journey down this path. For one, people yearn to feel as though they're part of a community. Secondly, people desire to share their creations with others who might appreciate it. We haven't seen this occur yet on a wide scale within the realm of video games, specifically because an online "connection" is required. However, with services such as Xbox Live and WiiConnect24, we can finally facilitate this community. The idea is to let players share their user-created maps, user-created items, and even user-created games.
Imagine an application that will enable even the most inept person to create their own games, of any genre, with ease and then share those games with friends. Microsoft's Game Studio Express announcement a few weeks ago is a great sign that one of the platform makers is warming up to the idea. For a fee, Microsoft is opening game development to its users, allowing them to share and garner feedback for improvements. It hasn't been refined to a YouTube style anyone-can-jump-in format yet, but surely someone will. In fact, it is only a matter of time before someone does.
When that time arrives, developers will find that their biggest competitors are no longer publishing juggernauts such as Electronic Arts, Ubisoft, Sony or Nintendo. No, the biggest competitor they will face is their very own customer.