Two types of gamers
First party vs. third party
Nintendo also owns popular first-party franchises such as Pokémon, Mario, and Zelda, which are exclusive to Nintendo consoles. However, many third-party developers have had low sales with the Nintendo Wii.
This is probably because the user demographic is very different from that of PlayStation 3 and XBOX 360.
Nintendo's consumers are generally children younger than 13 or adults older than 40. These casual gamers simply play video games for fun and don't play for very long. They usually only buy popular mainstream titles.
While PlayStation and XBOX 360 fight over the "core gamers" using expensive hardware, realistic graphics, and complex games, Nintendo chooses to use cheaper hardware and make games appealing to wide audiences.
Competitor's efforts to catch up
Microsoft and Sony are aware of Nintendo's successful appeal to wider audiences and have initiated projects to mimic the Wii.
Both companies are scheduled to add a new dimension of game play by adding motion sensing to the XBOX 360 and PS3. This allows you to interact more directly with a virtual character and make controls more natural, so that you could move his or her arms instead of memorizing a sequence of buttons.
Microsoft will release Natal, a system in which a camera will track any motion made, allowing users to play games without controllers. Instead of using a hand-held controller, users will directly control the games with their own bodies.
Sony has taken a less drastic approach through PlayStation Move. PlayStation Move is similar to the Wii, but much more precise. The controller is tracked by the console through Bluetooth connection, and each controller has a spongy ball on top that glows different colors.
Wii, are you catching my moves?
Despite mass improvements and frequent updates, the video game market has again fallen into a slump. The current global economic condition has caused people to become thriftier and save money.
Consequently, in recent years, the video game industry has suffered large losses in revenue and sales. However, the current downturn is not nearly as detrimental to the industry as the video game crash of the 1980s.
Usually, a new set of video games is released every three to five years, resulting in kids everywhere taking up jobs or selling their old games to raise enough money to purchase the newest and greatest technology.
But partially because of slow sales caused by the economy, the console lifecycle has been prolonged. When the economy suffers, every industry suffers as well.
Video games are a relatively new industry that provides jobs for many people worldwide. For such a new industry, it has had incredible success. It has made its way into popular culture.
Nintendo has shown that innovation will attract a larger audience and garner sales. However, Nintendo needs to be careful not to compromise existing markets in the process of gaining newer audiences.
Video games have made a place in popular culture by gaining millions of users and making billions of dollars, securing a solid place in the entertainment world.