The more I think of it, it becomes increasing obvious that Nintendo has made a big mistake with the Wii. Sure it is selling well thanks to Nintendo's deceptive, yet effective tactic of creating artifical demand (sheep don't even try to use the word supply constrained), but will it last? No, not by a long shot.
One thing I noticed this holiday season is adoption of HD. Just about everyones' wish list this year includes an HDTV of some sort, whether it is 19" or 70" and everything in between. HD is catching on BIG time, I know because I just got my 40" Sony Bravia LCD HDTV with FULL HD 1080P support. The handheld market is different, the DS appeals mainly to a younger audience that is more interested in fun and quirky gaming, not multimedia support and high-end graphics. This is evident in DS to PSP sales. The DS is destined to win, while the PSP simply follows at a slower, but still steady second place.
Sheep and Nintendo can tout sales figures all they want, but it doesn't change the fact that the Wii is severly underpowered. The whole PS2 vs GC and XBOX argument doesn't apply here, PS2 games actually looked better than some Xbox and most GC games, something the Wii has simply failed to do.
So what is in store for us come 2008 and beyond? Well, it is very simple. Complete domination by SONY with their powerful PLAYSTATION 3 while the Xbox 360 and Wii battle it out for second place, a mere 20% of the market at best. This is Sony's time to shine, anyone who disagrees is lying to themselves and denying the inevitable.
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