Monday July 28, 2008

The Nintendo Wii may be flying off the shelves, but without a video optical disc drive, can they survive? Since it is highly unlikely that the Wii will add a video optical disc drive in the current generation’s console, the Sony PlayStation 3 (PS3) and Microsoft Xbox 360 are left alone to create growth in the video optical disc portion of the console market. And video game console shipments should reach their peak this year.

Even though Microsoft made it onto the market first, the PS3 is poised to outsell the Xbox 360 this year. Price cuts, a Blu-ray victory, and a strong presence in the Asian market that Microsoft can’t seem to match give the PS3 a leg up. Also, the PlayStation 2 (PS2) is the best selling videogame console in history, and Sony hopes owners will soon upgrade to PS3 once shipments of the PS2 cease.

It shouldn’t be too long before we start hearing about the next generation of these three consoles. It will be interesting to see if the Wii includes a video optical disc drive the next time around. But truthfully, Nintendo may not need to add an optical disc drive to keep ahead of the pack. The Wii is the only console that is a pure video game system without extra features, which is how Nintendo can keep its prices far below those of the competitors. The Sony and Microsoft are really pushing their media center capabilities lately, focusing on video downloads, HDTV, and Blu-ray capabilities. Those media options sound like a great selling point, but at those prices the Wii still leads the way with 50% of the estimated market share for 2009 shipments, and with no signs of slowing down.

So could it be that simplicity is the way to stay ahead?