Microsoft takes a few pages from Nintendo's playbook

Nintendo Co., Ltd (ADR) (OTC: NTDOY) has taken the gaming console world by storm with a combination lower-price and highly-interactive "Wii" gaming platform that has sent Microsoft Corporation (NASDAQ: MSFT) Xbox 360 and Sony Corporation (ADR) (NYSE: SNE)'s PlayStation 3 to the back of the line since late in 2006. Nintendo seems to have a knack for paradigm shifting, as its $250 Wii gaming system combines high levels of physical player interaction along with a highly-enjoyable gaming experience. It's not the most technologically-advanced gaming system out there, but Nintendo seemed to know (before anyone else) that geek-specs like graphics and polygon count mean very little if the games themselves don't draw players into the environment. It's like the difference between watching a movie on a 19-inch TV screen and seeing a Broadway play from the tenth row (you get the idea).

Nintendo, though, is not resting on its laurels as Microsoft is wooing moms and others with more family-friendly games as well as making it easier to find gaming titles meant for younger audiences via re-vamped in-store displays. Yes, there are more markets for gaming outside of the teenage and twenty-something male set. Surprised?

This is precisely what Nintendo did with the launch of the Wii gaming console back in November of last year, and that strategy has worked perfectly for the Japanese company. By appealing to more of a mainstream audience (like sports players, parents and even the elderly), the market for Nintendo's Wii goes far past the tech-gamer set that higher-end gaming consoles generally try to court right out of the door. Contrast this to Sony's PlayStation 3, which is so advanced and pricey, it's cornered itself into a severe niche -- and the niche market where it's lumbering is just not enough (yet) to get it selling where Sony can actually make some money with the thing. Maybe it never will, although the original PlayStation consoles took years to build their own highly successful franchises. Nintendo, though, has already built its "Wii" little empire and it's getting larger by the month.