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Sony and Microsoft won't admit Nintendo is a competitor

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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.

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Last updated: November 26, 2009: 01:55 PM

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