Way back in 1996 when Nintendo was developing the N64, they reached out to Sony to help them manufacture a CD drive for their new console. However, due to disputes stemming from high costs and differences in opinion, the drive never saw the light of day. Instead, Nintendo reverted to the aging cartridge format, a decision that would eventually bite them in the butt.
Sony, the crafty sons of guns that they are, used the technology they had developed for Nintendo and expanded upon it, creating their own gaming console, the PlayStation. Ironically, the PlayStation went on to become an enormous success, going on to quickly sell millions of units. In fact, the console outsold the N64 so badly that many software publishers, such as Square Enix (Square Soft at the time), jumped shipped and got on the Sony bandwagon. Nintendo essentially created their own worst enemy, and the decision not to use Sony's disk drive haunts them to this very day.
Back
in 2006 when the Wii and the PS3 launched, both companies were in a
similar position. Sony had absolutely dominated the gaming market with
the PS2, which went on to become the most successful console of all
time. The Nintendo Gamecube, on the other hand, had failed to save the
company from the hole they had dug themselves with the N64. They were
loosing tons of market share, and simply could not compete with the more
'mature' brand of gaming Sony offered. Although Nintendo did have
hits such as Smash Bros. Melee and Mario Kart: Double Dash, the sales of
these games seemed minuscule in comparison to the likes of Grand Theft
Auto 3: Vice City.Nintendo was in a tight spot, and the fate of their entire company depended on the success of their next console. They had to do something different, something no one saw coming, they had to create a brand new gaming experience. They did, and they called it the 'Wii.' Nintendo took a huge chance with the console, and decided not to create an ultra-powerful system like Sony had. Rather than relying on sheer horsepower to sell their product, they instead introduced a brand new controller, and the dubbed it the "Wii-Remote." Unlike game controllers of old, the Wii-Remote contained a motion sensor which made it possible to control games with nothing but the players natural movements. This novel concept captivated consumers all over the world, and made gaming more accessible than it ever had been. Additionally, every Wii console was shipped with a copy of 'Wii Sports,' a game that became an instant classic. The Wii absolutely blew up, so much so that the console was sold out for months after its release. It was in such high demand, in fact, that Wii's were being sold on EBay for up to $1000. As of June 2012, 96 million have been sold worldwide.
The
Wii was immensely successful and gave Nintendo a second shot at life,
but what about the Sony PlayStation 3? Well my friends, it didn't get
off to such a great start. The PS2 was easily the most profitable gaming
console of the previous generation, and all signs pointed towards the
PS3 following a similar trend. The console had it all; a Blue-ray Drive,
a state-of-the-art graphics processor, tons of storage space, and a
bevy of great software titles. However, there was one small problem, it
cost $549.99. This price was absolutely unheard-of at the time and
turned off many potential consumers. Another issue was that the 'cell'
processor used in the console was brand-new technology, and because of
this many game developers found it difficult to work with. In fact, it
took years until developers got their heads around the
processor and were able to take full advantage of its power.
The
PS2 was successful because it was easy to develop for and
inexpensive, and the PS3 was less successful because it did the opposite. However, it wasn't
all doom and gloom for Sony. Although it took a few years to find its'
footing, the console eventually gained steam and started putting in the
numbers originally expected. The price gradually decreased,
developers leaned the ins and outs of the hardware, the online
infrastructure was improved, and a motion controller was released.
Additionally, titles such as Uncharted, Killzone, and Little Big Planet
became instant hits and went on to sell millions of copies. The system
was the very definition of late-bloomer. Although lifetime sales of the
Wii are superior, the PS3 has sold a respectable 64 million units to
date. Additionally, PS3 sales have gradually increased each year since
release, while Wii sales have decreased. Many attribute this to the
Wii's weaker processor, less-sophisticated online infrastructure, and
over saturation of the 'casual market.'The early Bit Brawl winner? The Nintendo Wii. The late Bit Brawl Winner? The PS3.

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