Online Gaming

Since the writing of the Electronic Arts Case the Sony PlayStation 3 and the Nintendo Wii have been released and both have online gaming capabilities. What’s your assessment of the current online gaming market?

I don’t play video games and I couldn’t even begin tell you what console we have in our home. PS2 maybe? It belongs to my husband. I definitely had to do some research on this one but the timing is perfect since my parents have requested a Wii for the 30th Anniversary- although I am sure they will not be playing online. I know Wii was popular when it came out because it was cheaper than PS3, offered wand-like controls that captured your motions, but offered a less in terms of graphics for serious gamers. I know the Wii console can connect to the internet and access the Nintendo Wi-Fi connection service for free for up to 32 players. The online function is there but Nintendo seems more focused on targeting a different market, reaching a broader demographic and making more profit per console than developing their online gaming capabilities.

For example, how did my parents even learn about the Wii? Great marketing, according to a study published by the Nielsen Company, has attracted a broader audience and more female consumers to Wii than Xbox 360 or PlayStation 3. While the brand name might carry weight and reach a larger audience, the system is also used the least compared to its rival consoles. The Wii is reaching an audience that wants to play video games but wants to play siginificantly less than the 8 hours per week stated in the case.

According to the same study, Nintendo's Wii was used by more women age 35+ than either Xbox 360 or PlayStation 3. Nielsen explained this phenomenon as the result of titles such as Wii Fit, Guitar Hero, and Rock Band having "engaged an older female gamer like never before." The image of my Mom playing Guitar Hero is not one I want to dwell on but this still doesn’t answer the question regarding each system’s online gaming capabilities or who has the most market share.

The 2006 release of PS3 was Sony’s attempt to regain the brand trust of online gamers who used Microsoft’s Xbox 360 released in 2005 as their console. The PS3 quickly distinguished itself from its predecessors and competitors by offering a unified online gaming service called the PlayStation Network. This contrasted with Sony's former policy of relying on game developers for online play as stated in the case. The console also included robust multimedia capabilities, connectivity with the PlayStation Portable, and Blu-ray capability. As of January 8, 2008, there were over 17 million active registered PlayStation Network accounts worldwide and users made 330 million downloads. As of May 2008, Xbox 360 reported over 12 million subscribers to Xbox Live so it appears PS3 is gaining market share.

So in the end, it looks like Microsoft's XBox 360 and PS3 are direct competitors, while Nintendo's Wii is more of a first-time user or casual video gamer who would like the latest console but is not interested in online gaming.