Next-Generation Console Battle Heats Up

Strategic Insights -

Nintendo, Microsoft, and Sony have unveiled their respective next-generation console projects, with Nintendo appearing to be the furthest away from launching a TV-linked console. The company showcased a prototype of its Revolution machine, but no launch date was given. However, Nintendo emphasized its advantage in the handheld game console market with the announcement of the Game Boy Micro, a new addition to its Game Boy family. The company also highlighted the success of its dual-screen DS handheld, which has sold over 5 million units, twice the level of sales of Sony's PSP.

Key Takeaways:

  • Nintendo's president, Satoru Iwata, held up a prototype of the Revolution console at the E3 video games trade show, but no launch date was mentioned.
  • The Game Boy Micro is a new handheld console that is two-thirds the weight of an iPod mini and features Nintendo's brightest screen ever.
  • Nintendo's dual-screen DS handheld has sold over 5 million units, twice the level of sales of Sony's PSP.
  • Reggie Fils-Aime, Nintendo executive vice-president, claimed that the addition of the Game Boy Micro has stacked the odds against Sony's PSP.
  • Nintendo will allow its Revolution console to play games written for previous generations and will also be a virtual console capable of downloading and playing any game produced during the company's 20-year history.
  • Sony gave the most impressive technology demonstration on Monday night, showing detailed high-definition games and displaying them across two HD widescreen TVs.
  • Microsoft stressed its advantages in software and new online services, and plans to launch the Xbox 360 in North America, Europe, and Japan before the end of the year.
  • Sony announced a Spring 2006 launch for the PlayStation 3, but its initial releases have been confined to Japan in the past.

Statistics:

  • Over 5 million units of the Nintendo DS handheld have been sold.
  • Sony's PSP has sold half the amount of units as Nintendo's DS, at around 2.5 million units.
  • Nokia's N-Gage phone/console hybrid has sold 1.6 million units since its launch in 2003.
  • 25 million high-end phones are expected to be produced by Nokia this year, potentially increasing the number of users for the N-Gage platform.
  • Nintendo's Game Boy Micro is two-thirds the weight of an iPod mini.

Sources:

  • Electronic gaming trade show (E3)
  • Game Boy Micro press release
  • Nintendo E3 press conference
  • Sony's PlayStation 3 announcement
  • Microsoft's Xbox 360 announcement
  • Nokia's N-Gage platform extension