Sony Corp. (NYSE: SNE) or Microsoft Corp. (NASDAQ: MSFT) both just can't seem to get over the fact that the Nintendo Ltd. (OTC: NTDOY) Wii gaming system is beating both in terms of sales. On Black Friday sales a few weeks ago, the Wii was at the top of searches on the web and was, by far, the best-selling game console -- a title it's held for over a year now over both the competitors.Yet, Sony and Microsoft consistently indicate that the Wii is on a different playing field since it does not offer a true gaming experience. What are these companies smoking? The gaming experience is not a gimmick, but it is apparently what has connected with millions of new game players, from the geriatric set to entire families. Not a true gaming system? Please. The customer experience is what counts, not the polygon count and the Swiss army knife approach of "do everything and anything" gaming consoles that can even cook your breakfast for you. Goofiness aside, you get the idea.
Microsoft's entry-level price for the Xbox 360 is now $199 -- $50 cheaper than the Wii, which has held onto its $249 price tag since it was introduced in the U.S. When Microsoft tells Cnet that "I think for us, we don't really see the Wii as a direct competitor, we actually very much complement the Wii experience ... it's obviously clear that we're going head-to-head with the PS3 in this generation." Unbelievable.
Now add Sony CEO Howard Stringer's line to the mix: "I've played a Nintendo Wii ... I don't see it as a competitor. It's more of an expensive niche game device." And you see how they miss the point. It's the other way around -- the Sony PlayStation 3 is the expensive niche gaming device.
Why can't these two competitors see why they are both getting kicked by the competition and respond accordingly is just plain odd. The Wii's sales have almost outsold the Xbox 360 and PlayStation 3 combined. Yes, Microsoft and Sony -- Nintendo is a competitor. Get over yourselves.











Reader Comments (Page 1 of 1)
12-08-2008 @ 12:43PM
teyenthegreat said...
brilliant... well said.
Its about time people stopped all the wii hate... its a fantastic bit of kit (more than for just games)
in fact, if you are a googler its easy to find out how you can 'softmod' your wii (its easy.. all it takes is putting a few files on an sd card and placing it in your wii)
...and with this it becomes a far more accomplished media center than the ps3 or 360 will ever be (ok no high def as such still, but who really cares as it runs perfectly at 480p widescreen and looks great on any tv and in full surround sound).
the 'softmod' unlocks the usb slots (i have a 300GB hard drive on mine) DVD player, homebrew games, a browser and applications... oh and use of high capacity sd cards!
This on top of the already excellent:
photo channel
internet channel
mii channel
weather channel
news channel
etc etc etc...
and on top of that you have loads of AAA quality games to choose from now.
i'm much better off with my Wii than ANY other console...PERIOD.
12-08-2008 @ 1:01PM
Sean said...
Totally agreed. The hardcore gaming is the niche market, the rest (the mass public who are not into half-life or doom) is the real market.... Nintendo wins big this time, every family I know has either already or is looking to buy a Wii..... let me know how many parents are into PS3?
12-08-2008 @ 1:06PM
lindajones86 said...
I've been a gamer for a very long time and companies like Sony and Microsoft really aren't on the same playing field as Nintendo is. The reason being is a lot of people buy the Wii but really know squat about gaming. Sure Wii has its classic hits Mario,Zelda, Metroid but the other good games on the console people pass over for the tons of horrible stuff found on that console. I've owned a Wii since its launch day and I have probably put less than 24hrs worth of time into that console. I turn my PS3 on daily, if I went to put a disc in my Wii dust mice might fly out.
Not to mention the people who own the console pass over great games like Boom Blox and Zack and Wiki but purchase shovelware like my princess pets.
The quality isn't there on this console not at least for those who aren't considered casual gamers.
12-08-2008 @ 1:07PM
Proofreader said...
Saying "Microsoft won't admit Nintendo is a competitor" is not true.
Here's a link to an article where Microsoft's Shane Kim talks about competing with Nintendo.
http://news.spong.com/article/16689/Microsoft_We_are_Competing_with_Nintendo?cb=35
12-08-2008 @ 1:14PM
phatkrome said...
While I agree that it's absurd to think that Nintendo isn't a competitor, he does still have a point. Most of my gaming friends who own a Wii, also own either a PS3 or Xbox360. I have both a Wii and 360. My Mother went out and bought a Wii and she would NEVER consider the other two. There is a large demographic out there who don't see the Wii in the same category. It's as simple as that. Tell me, what's the competition for the Wii Fit from Sony or Microsoft? People buy the Wii just for that game! In our house, the Wii DOES complement the Xbox. They both offer different types of games unique to the system and both are tons of fun to play. Unfortunately, no HD is a deal breaker for many. 480p does not look great on >46" 1080p screen. A 1080p Bluray movie looks great, 480p is ok. COD5 on the Wii is NOT the same as COD5 on the PS3.
12-09-2008 @ 11:39AM
Erick said...
Sorry to pick on you Brian but its obvious from the way your article is written that you know very little about the subject matter. Although Nintendo's hardware may sell well, manufacturers make their $$ on software. And that's were Nintendo can't compete. AAA multiplatform titles aren't even released on the Wii because of hardware limitations. Nintendo is surviving this round because they broadened the market to impulse buyers and grandmothers looking to buy something kid-friendly, not because they are competeing with Microsoft or Sony. More like a last ditch effort that has paid off so far.
12-08-2008 @ 7:54PM
bpsmx001 said...
Actually, Nintendo is doing something that NO other company has done in the history of videogaming. That is to make money on every console sold from DAY 1! On top of that, the profit margin for games sold on the Wii is greater because they don't take millions of dollars to make whereas SONY and MicroSoft are barely breaking even with their more traditional business model...I think that everyone is forgetting what company invented modern gaming. Hell...if Nintendo hadn't passed on the CD system Sony made for them, the PS wouldn't even have existed at all! Nintendo's plan is quite simple actually. If you can't win at their game, CHANGE THE GAME!
12-08-2008 @ 4:13PM
David said...
they are all game machines, but they are not competing for the same market, anymore then a Porsche competes with Hyundai, yes they are both cars, but they don’t compete for the same market. I would agree that the PS3 and 360 or the niche market, But you would never hear Sony admit that. Just as there are people with fancy sports cars, and a particle everyday car. People have both consoles. If you want evidence of Nintendo not competing in the hard core gamer market anymore, just this week N•Revolution Magazine announced they were stopping publication, because it was obvious that Nintendo is now targeting a different market, and they can’t sell advertising for the magazine to traditional games companies.
12-08-2008 @ 4:18PM
subject 117 said...
The attach rate for software is much lower for the Wii. I'm not ripping on the Wii, it currently has a market, but it is a novelty item. Nintendo is making money on the console, where the others are making money on the games. What happens when the market is saturated with Wiis and nobody is buying games for them? Do some further research and follow up the article with all the facts.
12-08-2008 @ 8:29PM
A.Kamakashi said...
It is not easy to understand the difference in the Wii system and the Xbox and PS3 if you are new to the gaming environment. Although the Wii does reach the masses, it is not a traditional "gaming" device. It is kind of like the difference between a microwave and a traditional oven. People who grew up using microwaves (Wii) typically see the oven as less useful.
Whereas people who do a fair bit of cooking would probably have both an oven (core gamer console Xbox or PS3) and a microwave (Wii). The Wii controls are intuitive and Nintendo was able to capture the imagination of more than just kids. They did a fantastic job. But this is not a fluke. Nintendo has been working on breaking the video game paradigm since inception. When the world was playing Atari with a joystick, they created duck hunt with a toy gun. While kids were playing two dimensional Sonic the hedge hog on Sega they developed N64 Bond, and 3d Mario. Not to mention, moving consoles from the living room to the back pocket with Game Boy and non traditional gaming options like Tamagotchi and Brain Drain. Not to mention Nintendo has been in the video game industry for about twice as long as Sony and Microsoft. (check your wikipedia for dates)
The Wii, Xbox 360 and PS3 devices are not direct competitors because they do not provide the same experience. For anyone who is not a casual gamer (if you define a casual gamer as anyone who has a limited amount of time to play games), when you sit down to spend some quality time immersed in a virtual world of puzzles, adventure, and explosions, you need a bit more than balance and movement. You need to be able to loose yourself in the experience.
Although to the general public Wii, Xbox and PS3 may seem to be the same on the surface, they aren't. No one would deny that apples and oranges are both fruit, but people don't typically compare apples to oranges.
It is understandable that people in the know, would not consider Wii and PS3/Xbox as direct competitors. And the general population may not be able to understand
"Why these two competitors see why they are both getting kicked by the competition and respond accordingly is just plain odd."
When apples outsell oranges in the supermarket people don't say "why don't orange growers see that they are getting their ass kicked by the competition and respond accordingly.
12-09-2008 @ 2:54AM
PhonziWun said...
hahaha.
the wii is boring. it was definately created to bring in douches and make them feel like they're skilled at something. all in all it's still only a video game, but you move around like a retard.
that's my opinion anyway.
i am very saddened that mario & zelda were ruined by the motion sensing, they turned to pretty much crap.
motion sensing killed nintendo.
12-11-2008 @ 12:09AM
subject 117 said...
A.Kamakashi...
"N64 Bond" = Goldeneye 007, which was developed by Rare, not Nintendo, and published by Nintendo. Rare is now an in-house developer for MS.
12-31-2008 @ 11:59AM
Snozzle said...
Sorry to tell ya Erick but Nintendo sold the most software this year too. A higher attach rate only means something if you have the same install base. According to vgchartz.com these are the current #'s as of 12/20/08
Wii: 43.8 units x 5.4 attach = 236.5 million
360: 26.5 units x 7.6 attach = 201.4 million