Competition in the Videogame Industry - Essay Example

These consoles were 8-bit.  Its dominance did not last long. Sega Enterprise dethroned it. Sega was Japan’s leading operator of arcade centers.

Between 1988 and 1994, Sega had launched the Sega Genesis with a microprocessor of 16 bit. Nintendo also released super NES which was 16-bit. Both Sega and Nintendo made use of a security system that locked out unlicensed developers. Between 1994 and 1998, Sega and Nintendo released their 32-bit consoles. Sega’s 32-bit system was given the name “Saturn”.  Nintendo released a 16-bit Super NES and later a 64-bit N64.  In 1995, Sony launched its play station videogame console and within the first two years of its launch, it was a hit. 

Between the years 1998 to 2005, various contending play stations were released. They included the Sega Dreamcast, Microsoft Xbox, Nintendo GameCube, and Sony PlayStation 2. They were 128-bit systems, with the PlayStation 2 being the best seller. 

From the year 2005 to the present, Microsoft Xbox 360, Sony PlayStation 3, and Nintendo Wii have remained the contending consoles with the Nintendo Wii taking on the lead. These companies are quite profitable. The release of Xbox 360 and the PlayStation 3 have marked an incredible achievement in terms of technology. They both can stream digital media from PCs such as video, photos, and music, with the Xbox 360 allowing online chatting and playing of games between its users, and the PlayStation 3 is 10 times more powerful than the PC embedded with an eight-core “cell” processor.

Besides their computing power, Xbox 360 and PlayStation 3 allowed for interoperability with other technologies and electronic products. The Xbox 360 console served as a “Media Center extender” allowing users to share content on different platforms. It also played HD DVDs. Meanwhile, PlayStation 3 played its new-definition DVD in its Blue Ray format. It allowed for video conferencing and online shopping and also connected to stereos and televisions. These features have made the two consoles increase their volume of sales hence they are quite profitable.

Although Nintendo was advanced technologically, to appeal to people, it embedded the Wii with innovative and user-friendly capabilities. It was able to capture an audience ranging from preschool children to old school. After the initial release of the Wii, it became such a hit that it fell short of demand for one year. This marks its capability of being highly profitable.  By 2008, the Wii had outsold the PlayStation 3.

In conclusion, for the videogame industry to be more interesting and profitable just like the three contending consoles, it needs to consider certain factors. They include the consumer audience it’s targeting, innovativeness, as well as cost. This explains why Wii is the most profitable.