Update on the Gaming Market

Sony and Microsoft are enjoying nice profits with the release of Grand Theft Auto IV. Many analysts are saying that this is the beginning of the decline for Nintendo, yet I believe they are misinterpreting the company and they are taking two totally different situations out of context.

There are generally two types of games, going beyond genre and system: single player and multiplayer. Multiplayer further breaks down into two categories: online play and group games. Many analysts fail to realize that Sony and Microsoft are reaching a different branch of multiplayer play than Nintendo is. Where Nintendo lacks is in online play and support, not offering chat options (probably for good measure) or online rankings. The systems currently in place are also crude, but polished: I can play Super Smash Bros. Brawl online with strangers, but I can't talk to them or customize a game. On Microsoft's Xbox Live, I can chat with people, see rankings, and do a plethora of other stuff. If I am going to get into chatting and playing with people/strangers on a regular basis I am probably going to pick up an Xbox 360 or PS3. If I don't care or want casual online play without the fuss then I will probably get the Wii. As a university student I don't have time to dedicate to online play, so I like my Wii.

The case and point is simple: console giants are targeting different markets. Nintendo continues to focus on those alienated from the market while Sony and Microsoft continue to support gamers who are already experienced or those more than likely to start playing video games often. Despite this, Nintendo has not forgotten it's legion of fans and has released many titles such as Super Smash Bros Brawl. Nintendo impresses me, they create most of the games for the Wii themselves while Microsoft and Sony rely totally on 3rd party support (the Wii lacks third party support).

The Nintendo DS is in it's fourth year now and sales are still up, however folks are saying that "thats about it" for the DS. As long as Nintendo continues to release titles that will keep gamers playing, I don't think they are going to have any problems maintaining "modest" sales, especially with hit game releases, the kind that sell the system. The industry is enjoying profits from GTA 4, but this isn't going to quell the big N back into the volcano.