During the last generation, Nintendo cashed in on the casual market and it paid off for them by selling a lot of consoles. But it hurt their games in a big way. Because most of the people that bought their games, were casual gamers and only bought something like Wii Fit or something similar. But they still managed to sell well by doing something different and being a new thing on the market with their motion controls.
Microsoft on the other hand cashed in on the arrogance that Sony had riding off the PS2 and Wii going for an entire different audience compared to the 360. They did a lot of things right by introducing great exclusives and letting indie developers thrive. They tried something new and it paid off, combined with their cheaper price and the great third party games.
Sony went after the gamers, but were too arrogant and thought gamers would pay anything to get their console. That was not the case. With the 360 being cheaper, having better games for it and being the overall better choice. It made them struggle. They were too arrogant and it didn't pay off for them.
We all know the story now. The 360 kind of went 180 and became the PS3 in the early years, while PS3 changed and gave gamers exclusive and the hardcore gamers value and games.
In this new generation Microsoft and Nintendo did a big mistake each. They relied on the casual gamer from the release of each console. They both want to appeal to the masses. Nintendo has a lot of issues, like naming the new console Wii U instead Nintendo U or something similar. People think it's an addon for the Wii U and Nintendo though it would be a hit like last time. Third party dissapearing and not having a lot of games the first 9 months tells a lot of the story unfortunately.
Xbox One has a lot of the same issue. They want to "conquer the livingroom" with the console. But they have also overestimated the demand that casual players. Even though it is selling well, it is still apparant that PS4 is selling better and it is catering to the core gamers overall. It also did not help in the matter with the DRM and used games issue last E3, which is a lot of the reason it's not selling as well as the PS4.
What i think is the case is that you should cater to the core gamer from release and try to capture them. The Wii was more of an accident, than it was a success really. Xbox should have made that clear from the beginning aswell with the Xbox One. All three consoles are great and have good exclusives. But you can't deny the fact that the PS4, 360 and PS2 all sold well because they sold something gamers wanted at the start of the generation. Both of them should change their focus to that, because it is still not too late for that. Am i wrong here?
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