Tuesday, June 27, 2006

Nintendo wins console wars

For christmas I am going to buy a Playstation 3 for myself. I'll buy it because it is backward compatible with library of PS2 games, and because the Playstation historically has the best selection of strategy games and role-playing games, and I expect the PS3 to follow the same trend. I want to play Final Fantasy XIII on the PS3! But at the same time I am aware that I am not a typical consumer. I'm adult, have a good job, and spending $600 for the better version of the PS3 console isn't killing me. The average consumer will be a lot more price sensitive.

The XBOX 360 in the better version (with hard drive) costs $400.

The Wii will cost "less than $250", lets say $200.

Now if you were a parent with your children pestering you for new game console, and a tight budget, would you buy the console for $200, the console for $400, or the console for $600? The PS3 just isn't a simple game console anymore, it is a complete home entertainment system with Blue-Ray DVD player, online capabilities, and everything. Most people simply don't need all of that, thus they will buy the console that they understand, and which is affordable. And that is the Wii. By the end of 2008, unless Nintendo has production problems, the Wii will have outsold the Xbox 360 and the PS3. Nintendo wins this round of the console wars.

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