Final business article

A war is brewing. A war that has been in the making for over 20 years. It is a war of two Japanese super powers and both sides will stop at nothing to step on their opponents throat. But this is not a political war or a governmental dispute. This is the war between Sony and Nintendo.

On the third weekend in November, the Playstation 3 and Nintendo Wii were launched. The release of these consoles mark each companies first foray into the world of next-generation entertainment.

The PS3, which launched in North America on Nov. 17, offers consumers high-definition graphics, blue-tooth connectivity, Wi-Fi, and other home theater options. Sony’s goal with the PS3 is to deliver the ultimate multimedia/home theater experience in one box.

However, even with the myriad of options the PS3 encompasses, many industry analysts frown upon Sony’s chances of winning the next-gen war. This negative outlook can be attributed to the $600 price tag that comes with the PS3. However, not everyone views the steep price tag as an area of concern.

“People that want a PS3 are going to buy a PS3” says an Oshkosh Game Crazy rep. Gamers just don’t care. It’s a technically, impressive machine that, to them, is worth the cash.”

Its competition, the Nintendo Wii, launched Nov 19. Nintendo’s focus for the Wii lies not within superior visuals and multi-functionality but with innovation and the ability to have a truly immersive gaming experience. Nintendo strives to revolutionize game play by creating a system and controller unlike anything the industry has seen before, and their doing it all for only $250.

The Wiimote is the controller to the Wii and acts as an extension of the player. By using sensors inside the Wiimote, players are able to simulate real-life motions. Players can aim the Wiimote like a gun, swing it like a baseball bat and hold it over their heads like an umbrella. The Wii console recognizes these motions and makes the characters perform the same motion as the player. With the Wiimote, the possibilities are endless.

Both the Wii and PS3 faced vast amounts of initial hype. Stores across the country started to allow pre-orders uncharacteristically early. Some stores even opened up pre-order options a year in advance.

Wisconsin stores were no different, as many game retailers sold out of preorders within minutes.
“We started dealing with pre-orders a month before each consoles release,” said a Wausau Gamestop rep. “There were people waiting in line just to pre-order them. They were literally gone within an hour.”

So with these two systems each offering their own respective strengths and at such high demand, who would come out on top this holiday season?

Before the launch Sony had promised consumers 400,000 units in North America and 100,000 units geared toward the Japanese market. The company had also made promises of having one million consoles worldwide by the end of the year.

After the smoke from launch weekend cleared, it appears that Sony has come up short. While both the Japanese and American launches saw the PS3 selling out within hours of it’s release,
Sony was not able to produce the units to fill out their projected figures.

In America, Sony sold 197,000 PS3’s. This is well short of their 400,000 unit goal. Even though Sony sold out of their console behemoth across the country, the launch can not be viewed as a success. Numerous manufacturing problems kept Sony from attaining their goal. And while Sony is standing behind its promise to ship one million consoles by the end of 2006, many analysts say that such a goal is highly unlikely.

PS3 shortages have affected stores in the Oshkosh area as well, leaving many gamers to go home empty handed.

“We initially had eight PS3’s and 18 Nintendo Wii’s” said a Fond du Lac Target sales rep. “ Since the launch, we had another shipment of 18 Wii’s but only four additional PS3’s”.

Daniel Van Rooy, an associate receiver at Sears in Oshkosh, shares similar concerns.

“We only received two Nintendo Wii’s and we never got any PS3’s,” Van Rooy said. “We were suppose to get a couple of PS3’s but when the truck came there was nothing there.”

All of these problems, coupled with the initial success of the Wii, finds Sony quickly falling behind in the next-gen race.

If the initial launch figures are any indication of the final result, then Nintendo has a lot to be excited about. The Wii sold 476,00 units in the United States alone and within the first eight days of its release, Nintendo reported sales figures of 600,000 units worldwide.

Another aspect that favors the Wii are its reviews. While critics are not saying overwhelmingly bad comments on the PS3, many are finding trouble trying to justify its steep price tag. The innovation, playability and price that the Wii console brings to the table is garnering rave reviews from critics around the globe.

While Nintendo seems to be the victor thus far in the console race, it is only the beginning. Console cycles typically reach a span of four-to-five years and most consoles do not peak until the third or fourth years. So while Sony currently may be down, they are far from out.

Despite the problems Sony has faced within the last month and the ever-increasing competition from the Wii and Microsoft’s Xbox 360, they have little reason to be scared. Sony has faced many of these problems before with the Playstation 2.That console is currently on top of the sales charts and has outsold all of the next-generation offerings that have made their debuts thus far. Not bad for a console that was released over five years ago.