Console Wars in Perspective Submitted Thursday, September 3, 2009 - 7:17:22 AM by Klaitu
I've written about it before, so you readers probably know that we are currently enjoying the Seventh iteration of the Console Wars.. but these generations are purely an ideal of the latest and the greatest.. after all, you can at any point go and play games from a previous generation.
The lessons we can learn from the history of the console wars might suprise you.
Go ahead and guess, what was the best selling console of all time? I'll let you think about it a moment so you can get an idea of it...
Would you believe that the venerable Playstation 2 is the king of all consoles? So far it's sold over 138 million units since it was released all the way back in 2000.
It's all well and good to say a number like 138 million, but how many units is that?
If you combine the sales figures for the original Game Boy, and the Game Boy color, the Playstation 2 still wins. In fact, if you combine the Playstation 3, 360, and Wii their combined total is still some 25 million units short of matching the sales of Playstation 2.
Anyway, to help get a wider perspective on this whole "console war" thing, let's look at who won each bout.
Generation 1: Magnavox Odyssey vs Coleco Telstar
Have you ever heard of these before? You might not have, and that's okay, because the first generation of console gaming sucked.
The Magnavox Odyssey was primitive by any definition and was basically little more than a way to manipulate dots on a screen.
The Coleco Telstar wasn't much better. On it, you could only play Pong.
Few people bought these consoles, and if there was a winner, nobody knows or cares who it was because they both deserved to die a horrible, horrible death. Their only legacy was to provide a stepping stone to better consoles in future generations.
The Winner: None
Generation 2: Atari 2600 vs Intellivision
This is where things started getting interesting. It's also the generation in which I was born, so yay.
The Atari 2600 today is pretty symbolic of classic video game consoles. That joystick controller, those weird switches..
The Intellivision is equally strange with it's keypad and discus controllers, the Intellivision was actually the world's first 16 bit console (albeit primitive) and also had an add-on speech module to make the machine talk at you.
Atari 2600 Lifetime Units Sold: 30 million Intellivision Lifetime Units Sold: 3 million
The Winner: Atari 2600
There is absolutely no question that the 2600 blew the Intellivision out of the water. It outsold the Intellivision by a factor of 10.
Of course, all was not roses for the second generation, for their console war ended with a devastating holocaust known as the "1983 video game collapse".
Generation 3: Nintendo Entertainment System vs Sega Master System
Most console generations end when a new "next generation" console is released, but that's not strictly true in this case.
You see, Atari and Intellivision weren't the only competitors in Generation 2, there were a half dozen other upstart companies that wanted to horn in on the market. Each company flooded the market with a wide variety of incredibly crappy video games, not the least of which was Atari.
At one point, Atari produced more cartridges for the game "E.T." than there were Atari consoles to play it on.
Consumers started turning off of video gaming, because the games were crap. The market was decimated, with all the Second Generation consoles being obliterated in this video game apocalypse.
From the ashes of destruction arose new life.. new life from Japan of all places.
The Nintendo Entertainment System is singlehandedly responsible for returning life to the dead video games industry. It came out in 1983, and by 1985 the industry was back on track.
Riding stealithly in Nintendo's wake was the Sega Master System, which had better technology inside (including the same 3d technology that is all the rage in theaters these days). Unfortunately, Nintendo had a ridiculous cadre of third party developers and was pretty much an unstoppable Juggernaut.
Nintendo Entertainment System Lifetime Sales: 61.91 million Sega Master System Lifetime Sales: 13 million.
The Winner: Nintendo Entertainment System
Again, there really is no contest here, the NES was the clear winner.. but Sega came up with a clever and daring plan. They started the Fourth Generation early.
Generation 4: Sega Genesis vs Super Nintendo
Also referred to as the "16 bit Generation" it was kicked off by Sega when they produced the Genesis in 1988. Nintendo had no counter to this, and so for 2 years the Genesis completely dominated the 4th generation. The Genesis clearly was superior to the aging NES from Generation 3.
Though Nintendo may have not been imediately ready to combat Sega in Generation 4, they did eventually turn out the Super Nintendo Entertainment System, which started taking back territory with an impressive gusto.
In an attempt to counterattack, Sega started whipping out addons for the Genesis such as the Sega CD and 32x.
Super Nintendo Entertainment System Lifetime Sales: 49.1 million. Sega Genesis Lifetime Sales: 38 million.
The Winner: Super Nintendo Entertainment System
While Sega didn't outperform Nintendo, they did make a serious foothold in terms of market share, and came much, much closer to Nintendo than it had in the previous generation.
It might be interesting to note that this is one of only two generations in which Nintendo's console was the most powerful in the generation.
Generation 5: Sega Saturn vs Sony Playstation vs Nintendo 64
This is the first generation with more than 2 serious contenders to the throne of video games.. and it's all Nintendo's fault.
You see, at one point, Nintendo planned to make a SNES-CD to combat the Sega CD. Like the Sega CD it would be an addon to their console, and Nintendo partnered with Sony in producing the experimental new disc technology to be used.
This had been in development for some time, with engineers trying to figure just exactly how to make a CD console viable. After several years of research, the project was almost ready to be viable.
Then, suddenly, Nintendo decided that they didn't want to partner with Sony anymore because their partnership contract gave a lot of control over the console to Sony. Nintendo turned it's back on Sony and announced it would start working with Phillips to make disc based games.
Sony was suddenly left with an almost working CD-based gaming technology, so they decided to go ahead and make their own console.
Meanwhile, Sega got the drop on everyone and released the Sega Saturn, the new Saturn console was powerful, and featured a CD drive and 32 bits of gaming pleasure. While the console could generate 3d images, it was mainly designed for higher resolution 2d games.
Since Nintendo shot themselves in the foot and had no viable console ideas, Sony got their Playstation to market within a month of Sega. The Playstation was technnically inferior to the Sega Saturn, but was much better at producing 3d Images. Sony also got cracking and picked up a lot of Nintendo's old Third Party developers, who didn't really have a platform to work on since Nintendo didn't have a console yet.
2 years later, Nintendo came back, hoping to slug it's way back to the top of the market like it did with the Genesis of the previous generation. They released the Nintendo 64, but they made it a cartridge system. While the Nintendo 64 was technically superior to both the Playstation and the Saturn, the lack of storage on cartridges severely limited what developers could do with the platform.
Sony Playstation Lifetime Sales: 102.49 million Sega Saturn Lifetime Sales: 17 million Nintendo 64 Lifetime Sales: 32.93 million
The Winner: Sony Playstation
The Sony Playstation completely dominated the generation with over 3 times the number of units as Nintendo.. a fact which no doubt burned Nintendo Executives, as all they had to do to clock in that score was to not turn their backs on Sony.
It became apparent to Sega that they had gotten double trounced on this generation, and so they went back to that old tried-and-true strategy that they used in Generation 3.. start the next generation before anyone else ie ready.
Generation 6: Sega Dreamcast vs Sony Playstation 2 vs Microsoft Xbox vs Nintendo Gamecube
Sega were succssful with their plan at first. They got a 2 year head start in Generation 6 before any of their competitors were able to get on the scene with their Sega Dreamcast.
The Dreamcast was respectable as a system, and still has a loyal fanbase even to this day. Unfortunately, the next company to join the generation was Sony with the Playstation 2.
There really wasn't any way that Sega was going to compete with the Playstation 2. Sony had its developers from the Playstation 1, it had the popularity of the playstation 1, and it had backwards compatibility with the playstation 1. The Playstation 2 also featured DVD playback capability, which was a definite contributing factor to it's success.
As a result, Sega closed up shop and discontinued the Dreamcast, pulling it out of the race early.
Meanwhile, Nintendo came out with the Gamecube, and was apparently still shy about the whole CD disc thing, because the gamecube discs were in a strange format that nobody else bothered with.
Then, from nowhere Microsoft entered the fray. Their Xbox was the first important domestic console since the Intellivision.. and being Microsoft, the Xbox was basically a minatureized PC.. but it was still enormous.
Playstation 2 Lifetime Sales: 138 million Nintendo Gamecube Lifetime Sales: 21.74 million Xbox Lifetime Sales: 24 million
The WInner: Sony Playstation 2
Again, Sony dominated the generation.. getting more than twice the sales of the other two consoles combined. Newcomer Microsoft managed to come out of nowhere and outperform old veteran Nintendo despite the Xbox having virtually no presence in Japan.
Interestingly enough, the Playstation 2 is still going strong and the little console is still being manufactured and sold in industrialized nations, while also being a big hit in low-income nations now that it's technology is dirt cheap.
For the next generation, Microsoft decided to take a page from Sega's old playbook, while Sony went with Nintendo's old approach.. and Nintendo just started to make stuff up and hoped nobody would notice.
Generation 7: Sony Playstation 3 vs Xbox 360 vs Nintendo Wii
This is the modern generation of gaming, which you can expect to last until 2012 or 2013.
Microsoft initiated this generation when it relased the Xbox 360 nearly a year before Sony or Nintendo were prepared to do so. They used their initial advantage to get a wide install base for 7th generation hardware. In turn, they used this install base and their virtually unlimited Microsoft bank account to make serious inroads into Sony's exclusive developers before Sony even got the Playstation 3 to the market.
Sony for their strategy was, as a company, more focussed on crushing the HD-DVD disc format by attaching blu-ray to the PS3.. a strategy that ultimately worked. The Playstation 3 had a lot of extra muscle under the hood, too. More than perhaps was immediately neccessary to combat the 360. The cost of PS3 production was high, and most consumers felt the price was too high.
Shortly after the Playstation 3 came along, Nintendo unleashed the Wii, a technically inferior console that is supposedly focussed more around "innovative gameplay" than cutting edge technology. The strange, easy to use wiimote controllers led to widespread media coverage of the console, and it benefitted from a widespread word-of-mouth campaign. The Wii drew massive consumer interest from markets which traditionally do not buy video game consoles, as the Wii is also billed as high tech exercise machine.
Xbox 360 present Lifetime sales: 30.2 million Playstation 3 present Lifetime sales: 24.6 million Nintendo Wii present Lifetime sales: 52.62 million
The Winner: Too Soon to call
While the Wii has a clear units sold advantage here, its sales have slowed considerably now that the console is actually available without a waiting list. The "new and innovative" gameplay has cemented people into pro-Wii or anti-Wii stances, and little headway exists for the Wii at the moment. Both of the more expensive consoles have begun to outsell the wii on a per month basis.
The Xbox 360 looks like the next best thing, and certainly, Microsoft has thrown every trick in the book at trying to scrape up market share for this generation. It's online features are unbeatable, and gaming technology has not progressed to the point where the 360's inferior graphics technology is an issue.
While in last place, the Playstation 3 can't be counted out yet. It came out a full year after the 360, and until recently cost at least $100 more than the 360.. and yet it is only 6 million units short of the 360. There's certainly time for the Playstation to fight it's way to the top once more. Perhaps the PS3's strongest advantages are its blu-ray player, and its dormant technology which has yet to be fully exploited.
In terms of predictions, I'm sticking with my original prediction that I made in 2006:
The Wii's "innovative controls" make it a bear to develop for, particularly when you're trying to put a game on all 3 systems. It's inferior graphics makes developers overlook the Wii as a desireable platform entirely. Even among gamers who support the Wii, the novelty of the motion controls wears off quickly, and most Wii owners find their console collects more dust than it does gameplay hours.
I originally predicted that the 360 would come in at a tepid number 2, outselling the Wii but not the PS3. I have to admit, I have found Microsoft's commitment to earning gamer cred to be impressive. In terms of effort, I think Microsoft is just phenomenal. They really turned around their abysmal performance with the original Xbox, and they are constantly trying to come up with every advantage they possibly can to stay on top. This is very good news for gamers.
I predicted that the Playstation 3 would take the lead, but it certainly hasn't done it in the way that I predicted. Honestly, I expected there to be more of a landslide than there was.. but there is still time, especially if Sony is ready to go toe-to-toe with Microsoft on pricing. I think that the engineers at Sony have invented an amazing console, but that the management team at Sony doesn't know exactly what it's audience wants. They may be closer to Japanese gamer's desires, but they're falling short in the western world.
If Sony suddenly inherited even half of the custo that the Microsoft team has shown, they'd have this generation won in a cinch, but as it is they've gone with more abstract strategies like using the PS3 to reduce the manufacturing price of Blu-ray diodes so that they can dominate the blu-ray player market.. these things are better for Sony than they are for Gamers.
Whatever happens, I think that this Console war is certainly among the best fought. Each faction still has a viable chance at the title, and the only thing that competition does is make things better for gamers.
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