While the bulk of the CES Digital Games Summit focused on extended repetition of the surprisingly obvious, one panel discussion yielded some interesting insights into the future of handheld gaming. Representatives from Nokia, Sony, Intel, and Tapwave (the makers of the newly-released Zodiac device) offered their opinions on key issues facing the handheld market at a time when it's poised to suddenly welcome several new competitors. CES alone has at least three new handheld gaming devices on display, and Sony's PSP is waiting in the wings for E3.

The PSP obviously weighed most heavily on the minds of the audience, but Sony's Andrew House preferred to speak in more general terms. Also, though media playback is a key feature of many handhelds on display at CES this week, he had little to say about the prospective multimedia capabilities of the PSP. Most of what he had to say focused on games, promising that Sony's handheld will feature "banner" franchises and games with depth comparable to what we're playing on consoles today.

Original content, in Sony's view, is the key to any successful release, ahead of design or other ancillary features. Any major console or handheld release, House noted, can count on selling perhaps half a million units to the early-adopter market. To push beyond that into the mainstream market, a system needs significant content support out of the gate. The launch lineup, he said, drives the content that will follow.

New distribution methods for handheld games may change that, however, which proved to be another interesting topic of discussion. Wireless gaming, for instance, has all but abandoned traditional methods of game distribution -- instead of buying a box at your local retailer, you can download a game and pay for it all at once. Both ends of the transaction are completely electronic. Tapwave's Byron Connell noted that his company has looked closely at the potential for electronic distribution of more complex games, or even electronic "rentals." Using a secure internal clock, a handheld could let players download a game for a reduced price and try it for a limited time, deleting it afterward and offering an option to buy the full version.

Andrew House noted that makers of more complex games will likely have to rely on traditional methods of distribution for at least the coming generation. That's the line one would expect from an SCEA representative, since the PSP is married to a proprietary physical media format that Sony is betting a significant stake on, but it's still likely true, at least in the case of a device that plans to offer far more complex games than current handhelds.

The potential exists, however, for a significant gulf to appear in the handheld market. The PSP and Zodiac are obviously headed upmarket, with 3D games and significant multimedia capabilities besides. Wireless gaming, however, may not follow behind them. While Andrew House promised that the PSP will move away from the "opportunistic" gaming of current handhelds in favor of more complex "appointment" experiences, Nokia's Nada Usina argued that such a strategy might go against one of the main reasons consumers play mobile games. A handheld, after all, is generally viewed as something you play on the go, in the time you find between other activities. The PSP, then, might leave the market for "opportunistic" games entirely to the rapidly-growing wireless sector.

The divide between wireless games and entertainment-focused handhelds could eventually extend to the way games are made, as well as how they're sold and played. The wireless market is obviously in need of some standardization, with multiple carriers and operating systems struggling to sort out which will dominate in the long term, but Intel's Tasos Kaiafas observed that a key distinction might eventually arise between an open platform -- wireless gaming -- and proprietary platforms -- the PSP and company. The difference may not be so important to consumers, but it's certainly significant for developers, who have a lot more elbow room on an open platform (like the contemporary PC). That, combined with the potential for electronic distribution of wireless games, points towards a significant broadening of the wireless gaming library in the coming years.

At the same time, Kaiafas predicted that wireless gaming will retain links to console and PC games. Nintendo's particular manifestation of the concept has given "connectivity" between handhelds and other platforms a black eye, but he argued that a wireless platform's ease of connectivity -- to the Internet, and from there to consoles and PCs -- offers many opportunities for making it an extension of other gaming experiences. A handheld, he said, might let you manipulate a football franchise on the go, or manage some aspects of an MMO character's development.

One thing all the panelists agreed upon is that there is room to build the handheld market beyond the Game Boy Advance. The GBA may seem invincible, but several panelists argued that an older, more mature audience is willing to accept a platform that meets more diverse needs. Entertainment will always be the main reason consumers buy a gaming handheld -- a point particularly stressed by Sony and Tapwave's representatives -- but one that also offers them communication and productivity features will certainly have an edge.

Plenty of devices are debuting this year that plan to give consumers just that. We look forward to seeing which ones survive to shape the handheld market in the coming year.

For more, check out's 2004 CES Special Report