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Game consoles vie for next-gen supremacy

Microsoft, Nintendo could benefit from Sony's price, production woes

analysis
By Denise Ono
MSNBC.com producer
MSNBC
updated 9:07 a.m. ET Nov. 17, 2006

Denise Ono
MSNBC.com producer

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Once again, three major video game consoles are set to battle just as the holiday shopping season gets in gear. And just like the last round of console wars five years back, the players are Sony, Microsoft and Nintendo.

(MSNBC is a joint Microsoft - NBC Universal venture.)

In the fall of 2001, Microsoft unleashed the Xbox on a world that was skeptical of the computer software giant's ability to compete with the more experienced companies. Around the same time, Nintendo also released their new console, the Gamecube. But Sony, building on its success of their first machine, had a one-year head start with the PlayStation 2.

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Sony's dominance grew, eventually capturing about 70 percent market share. Xbox proved to be a respectable entry into the gaming world, and Nintendo stayed alive, mostly due to the success of their GameBoy and DS handheld systems.

This time, Sony isn’t first-to-market with their console—that honor goes to Microsoft’s Xbox 360. The company’s second entry into the console wars was released a year ago, and has generated strong reviews and decent sales. And Nintendo’s Wii, with its unique, motion-sensing controller, has generated good pre-release buzz. And Sony? Manufacturing problems have caused delays and shortages for their PlayStation 3 launch.

So the million (billion)-dollar question is, on the eve of the PlayStation 3 and Wii launches: Is the balance of power shifting in the game industry? Let's take a look at some of the factors that will come into play.

Availability
Sony initially planned to release the PS3 last spring, but then slipped the date back to November. Manufacturing delays forced the company to cut shipments in the U.S. by half to two million by the end of the year. A mere 400,000 will be available on launch day, Nov. 17.

Nintendo hasn't released exact numbers for its launch on Nov. 19, but says it plans to ship four million by the end of 2006.

When the Xbox 360 was released last year, getting your hands on one was nearly impossible for several months. Now, most major retailers have it in stock.

So if your heart is set on having either of the two new boxes under your Christmas tree this year, you'd better be reading this from the line at your local electronics retailer, or think about getting an Xbox 360.

Advantage (temporarily): Xbox 360

Sticker shock
At this year's E3 (Electronic Entertainment Expo), the talk on the show floor wasn't about the latest high-end graphics or the newest first-person shooter, it was about PS3's price. Sony sets a new high at $499 and $599 for the 20GB and 60GB models respectively. That's $200 above the prices for the two Xbox 360 models.

NBC VIDEO
PS3 debut sparks stores frenzy
Nov. 17: Throngs across U.S. mob stores to buy Sony's eagerly-awaited PlayStation 3 video-game console as it makes its United States retail debut. NBC's Michael Okwu reports.

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Driving up the cost of the PS3 is Sony’s Blu-Ray disk drive for high-definition video and increased storage capacity. Xbox 360 offers the competing HD format drive as an add-on for $200, making the two systems equal in price. However, at this point Xbox 360 games are played through the standard DVD drive, making the new drive purely optional.

Sony hopes the PS3 will push their Blu-Ray format to the forefront, making the console launch a key part of their overall consumer electronics strategy.

At $250, Nintendo's Wii is the cheapest of the bunch. It's also the only one that lacks HDTV resolution support and DVD playback capability (current or next-generation). Still, at $50 below the stripped-down Xbox 360, the Wii is difficult to ignore.

Advantage: Wii

The games
All three systems feature the ability to run some, if not all titles from earlier systems, but Xbox 360's lead time gives it a head start on games made specifically for the machine, with over 100 currently available. Unfortunately for Microsoft, the coveted killer app is missing from that list. Bungie Studios' "Halo 3," (the original version was a must-have for the first Xbox) won't be available until next year. Recently released "Gears of War," by Epic Games, has been hailed by some reviewers as a worthy successor, but it's still not "Halo."

PS3 also suffers from the missing killer app. Although around 20 titles will be available on or shortly after launch, "Final Fantasy," by Square Enix, isn't due out until the end of 2007. And Konami's hugely popular action title "Metal Gear Solid: Guns of the Patriots" won't hit shelves until next summer.

Wii will have about 30 games available around launch time. Included in the bunch is the highly-anticipated "Legend of Zelda: Twilight Princess," sure to become a must for any Wii library. Other big names, "Mario" and "Metroid Prime" have been pushed back to next fall. In addition to "Wii Sports," included with the console, Wii will feature games, like "Excite Truck," designed to take advantage of the revolutionary motion-sensing controllers, creating more active experiences than the usual button mashing. One of these titles could prove to be a major draw.

Advantage: Wii


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