I don't own a gaming system but was fascinated by an article that I read from a magazine in my boss's office. It focused on the power struggle between the three major companies; Sony, Nintendo, and Microsoft. First, Microsoft launched the XBox 360 for the Christmas of 2005 in order to beat Sony and Nintendo in the release of their most current gaming systems, and hopefully steal some of their market. They focused on building a strong on-line connection between gamers. The PS3 and the Nintendo Wii both came out this past Christmas. The PS3 incorporated Sony's new Blue Ray technology and felt that graphics were the key to gaming systems sales. Nintendo, on the other hand, forewent graphics and focused their research and development on a more interactive game controller.
Sony Playstation has held market dominance since they introduced their first playstation. When they launched the PS3, it seemed as if they didn't account for what the XBox had done with on-line interaction or what the struggling Nintendo was doing with their new interactive controller. They seemed to think that just because they always have had market dominance by having better graphics that they would continue to hold their market strength.
Nintendo was considered dead in the water after the Nintendo Game Cube failed. They responded by NOT trying to keep pace with Sony's graphics. It could have been the perfect response. The Nintendo spokesman may have stated it best when he said, "people want fun not graphics" (Electronic Gaming Monthly, March 08).
The Nintendo Wii has made twice as much as the PS3 in the past few months. Has Nintendo taken the right approach with their new game controller or is it just a novelty? Will we start seeing Nintendo Wiis resold on ebay in a year? Is Sony's focus on technology more profitable in the long run?