
Towards the late 1990s and early 2000s, Sony was the dominant player in the video game market. Sony’s Playstation 2 controlled an overwhelming share of the console market, and its games were selling like crazy. Lurking behind its shadow, however, was another powerful tech corporation posing to dethrone Sony. This powerful player was the software giant Microsoft. Much like Sony who came before, Microsoft was also a new player in the video game market. Yet, it possessed a vast amount of resources and capital. In fact, Microsoft makes more money in one quarter than what Sony would make in a year. It would have no problem putting its advantages into good use.
Microsoft spent a considerable amount of money to hype up its brand and to market its games. After its first home console (XBOX) failed to gain much attraction, Microsoft released a much better version of its console called XBOX 360 in 2005. The new console was considered revolutionary at the time. XBOX Live, a new feature of XBOX 360 which allows multiplayer gaming and content sharing, was a tremendous success pushing the console in front of the pack. The entrance of Microsoft into the video game business starts a new round of console war — one that is as fierce as ever.
In response to XBOX 360, Sony quickly rolled out the next version of its Playstation line called Playstation 3. Sony was betting big stakes on its new console. The development of Playstation 3 was the costliest in the history of video games. Sony’s chief aim in developing the new game system was to produce the most powerful and most innovative product in this generation and next. The company practically diverted most of its resources into this one project.
First, Sony partnered with IBM and Toshiba to develop the most powerful cell processor up to date. The processor is so powerful that it could actually be used to power a supercomputer. Second, Sony’s engineers equipped the new system with truly over-the-top graphic capabilities, allowing games to be shown with amazing graphic details and clarity. The new system had a ridiculously large amount of hard disk space; it also introduced Sony’s prized Blu-Ray DVD player.
The system was so impressive that even Microsoft had to acknowledge it as the jewel of all home consoles. This achievement did not come without a colossal cost, however. Sony pretty much exhausted all its resources, resulting in many problems with the company’s other lines of business.
The development of Playstation 3 was very secretive. From time to time, however, Sony would reveal some of the new system’s specs in magazines and newsletters. I was a recipient of one of these newsletters. When I first saw the specifications, I could not help but to lament a bit. Sony is a great tech company, but it has gone overboard this time. The new system has too much potential for its own good. Buying a Playstation 3 is like purchasing a 10-bedroom and 5-bathroom mansion for a family of three. There is no doubt that this home console will do well with hardcore gamers. The console, however, is too expensive for ordinary consumers who will likely settle for a less expensive system.
But, a console war cannot be completed without a third competitor. After a long absence, Nintendo returned to the video game world with a vengeance. The company released the long-awaited Nintendo Wii in November of 2006. Unlike Sony, Nintendo was quite fore-coming about the development of the Wii; a demo of the Wii was released to the public way before the game’s official release.
Upon its release, the Wii quickly gained attention for its highly innovative control, which allows players to emulate real-live actions and moves. This new technology provides gamers with something completely different than the norm. By focusing on family-oriented themes, the Wii attracts a lot of new gamers. Having a surprisingly inexpensive price tag is also a big plus. As of this post, Nintendo has overtaken both Sony and Microsoft as the leader of the market.
The early success of the Nintendo Wii has both its competitors scratching their heads. The technology used to implement the exciting Wii gameplay is neither a new technology nor a technical breakthrough. Both Microsoft and Sony had had the capability to develop the technology way before Nintendo even started to work on it. Unfortunately, they were not able to think outside the box and failed to capitalize on it.
While Nintendo is the early leader, the war is far from over. Both Sony and Microsoft are seasoned competitors. They all have their core support groups and fanbase. As developmental costs decrease, both systems will become cheaper and thus finding more buyers. The prospect of Blu-Ray DVD becoming the standard of the future should help Sony’s Playstation 3 and Sony, in general, tremendously. Microsoft, with its popular XBOX Live service, is not to be taken slightly either. I’m sure there will be many interesting battles ahead, so stay tuned.
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Simon N. 2007
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