As noted in the latest issue of Business 2.0 Magazine, the eagerly-anticipated PlayStation 3 has already lost this round of the console wars to its Japanese rival, Nintendo's Wii. Since late last year, when both consoles were released, the Wii has consistently outsold the PS3 in every major market. Sony's PS3 is packed with costly gee-whiz features that turned out to be a drawback to consumers faced with choices. Nintendo's Wii simple, elegant design and low price are two reasons it's consistently outselling the PS3.
For Nintendo, the number 3 company in the videogames business, it's a David-vs.-Goliath turnaround. For Kutaragi's team, who ruled the roost of this industry for 12 years, it's a shameful final defeat.
There are a number of lessons we can glean from this -- not just for the future of videogame consoles, but the future of consumer electronics. Decades from now, PS3 vs. Wii will be remembered as a cautionary business tale: how pride, politics, and an overabundance of technology can blind you to the simple truth of what consumers want.