Chris Thomas

Nintendo: Wii Love Mr. Market’s Mood Swings

P/E of MSFT: 19.85
P/E of SNE: 35.51
P/E of NTDOY: 13.44

Hmm...

EA: Microsoft, Sony, We Have a Problem

First off, great article. This is an industry that I find fascinating right now, maybe because deep down I'll always be a dorky gamer.

I disagree with you that XBox 360 won't reach the status of the PS2 - in my mind, it's the heir apparent. It reached the market first and already has a few big names on the way, such as Halo 3 and Fable 2. If you're currently an avid gamer, XBox 360 is a must have. The hardware is unsurpassed and as the success of Gears of War can attest, great graphics can make a difference. Playing that game on a good HDTV is surreal. I have little doubt that the XBox 360 will continue its success as more and more games make their way onto the market.

That said, the Wii is one of those products that comes along and can only be characterized as disruptive. With its intuitive feel, it's not only fun for people that have played video games since they were five, but also people that don't fit into the traditional video game demographic. I have a friend that always sighs, rolls her eyes, and walks away whenever she sees me and my roomate playing "Halo". We tried to get her to play but she just couldn't figure it out. The learning curve is too steep. For me, it's fun as hell but if you didn't grow up playing 1st person shooters that controls can be insanely unwealdy.

Put a Wii-mote in the same person's hands and it's a completely different situation. We have a blast playing Wii Tennis. I'm sure I could even get my parents to play if I tried.

To be cliche, the XBox 360 will be the market leader in the console industry's "red ocean". The Wii, on the other hand, has expanded the demographic - it has found a "blue ocean".