Nintendo to Win Console Wars

GameDaily has an interesting article today about a press conference that Tokyo Nintendo President Satoru Iwata gave. He said that Nintendo intends for the Wii to be a successful business within the first year. They aren't going to lose tons of money just to build and distribute the console like Sony and Microsoft. And at the same time they're ramping up production of the DS Lite.

For a number of years, I've been saying that Nintendo will win the console wars. I remember telling them that (during a telephone interview in 2003) I believed that Sony and Microsoft were going to waste a lot of resources fighting each other and Nintendo would just build quietly and slowly until it took over the market. They've already got control of the handheld market, and by far. Sony can't touch the numbers on GBA and DS. And Microsoft isn't even in that market, yet.

Nintendo, the innovator, will ultimately move ahead of Sony and Microsoft. They're not about faster processors, they're about games that people want to play. It's a very different focus. The Wii simply floored me out at E3. The controller is innovative and made the games that much more fun to play. Gaming is not straight numbers, a console isn't better simply because its specs are better.

The war of attrition going down between Sony and Microsoft is going to take some time. They're both huge companies. This is like a horse race. The two speed horses break out into the front of the pack and race against each other. They tire each other out and then the horse that was just keeping a quick pace pours on the speed and passes them. I'm saying that I think Nintendo is that winning horse.

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