What a wierd question I just posted and it almost sounds like they could be one and the same in a way, but in fact they are very different from eachother.

For a long time, well basically til now we as gamers have only been able to get what companies call the "next generation".  What that usually meant is more power under the hood to make games look prettier and allow more realistic environments and music.  This stride forward towards realism seems to damper anything that doesn't look realistic or photoesc.  The Xbox 360 and Playstation 3 are the forerunners for this new way of gaming.

Then along comes Nintendo.  Everyone knows that Nintendo does their own thing.  For better or for worse they always go in a direction that they see fit.  Atleast that is what they want you to believe.  The past two generations of consoles for Nintendo have been direct competitors to the other iterations of Sega, Sony and Microsoft.  From the Failures of the Nintendo 64 and Gamecube as well as the Dreamcast it became apparent that fighting Sony and Microsoft head on would be sure suicide everytime.

Why would I say that?  Well its obvious that Microsoft and Sony are big clonglomorites.  Their company portfolios stretch well beyond gaming.  This allows they to incorporate other attractive offerings into their consoles that Nintendo would have to spend lots of money to even consider the option.  This means Nintendo would be fighting a losing battle out of the gate. 

Microsoft which was first to come to the market as we all know chose an online approach to gaming, after the phenominal success of xbox live for the original xbox, it was a natural step for the xbox 360 to include a stronger version of the live service.  For better or for worse the 360 games are online, many with problems that require later patches and some that even patches won't begin to fix the problem but Microsoft definately puts pressure for developers to use the Xbox Live model for online gaming.

Sony has a much different approach, sony being a huge music and movie label brought out the blu-ray format and wanted to focus on high definition movies and gaming as their attractors.  Although the xbox 360 does high definition as well, the lack of HDMI, a next generation media format as well as 1080p ensures that the PS3 defines itself as the leader in that category.  Not much is known about sony's long term plan and their online model and full disclosure of it is yet to be announced.  I know they can succeed with it, it most likely copies the Xbox Live model to some degree and adds features to it.

The problem is these two companies are so in love with their technology, they forget that most of their potential buyers don't have the money or home theatre equipment to take advantage of any of it.  And that is exactly the weapon Nintendo is using against them.  Much like gazing only in a mirror Microsoft and Sony can't see the world around them for what it is.  The depend on the gamer to change and buy this expensive stuff to be entertained.  But is it necessary?  I say no it is not.

As these games become closer and closer to real life, they go further and further away from being videogames.  As a previous owner of a Xbox 360 I can tell you for sure that HD graphics isn't all its cracked up to be.

Nintendo put itself in a unique position this generation, not the right position.  Reason being, until the numbers are in and we have all decided we don't know if Nintendo is in the right position.  The unique position Nintendo has put itself into is quite underestimated by the giants of gaming.

Nintendo says they want to disrupt the gaming market, they want to bring innovation back to gaming.  In order to do this, Nintendo has to think of a way to go in which Sony and Microsoft will practically laugh them off the stage.  Not going HD is one example of this.  Nintendo is pretty much in all the areas that Sony and Microsoft are not.  From Microsoft and Sony who don't see the world for what it is, they don't care.  But for Nintendo they put themselves between Sony/Microsofts HD systems and the consumers without a struggle.

Sony showed signs of intimidation when they unveiled the Shake features of the PS3 controller.  Microsoft still pays no attention, with peter moore saying the Wii will be fun for 5 minutes at parties.  They don't see it at all.  Luckily Nintendo's strategy takes time to manifest.  Launch will not indicate anything about the Wii's position compared to the Xbox 360 and the Playstation 3.  It will in fact take a year or more.  Developers have to figure out just how to use this controller, much like the DS took time.  Although there is a different learning curve, once developers have time to get their Wiimotes the way they want them, we may see a massive amount of unique titles and excellent uses in more conventional titles.

So what does this all mean?  Right now Nintendo is taking hit after hit from Sony and Microsoft.  Allowing them to say whatever they want and claim that they are better, much like a videogame, Nintendo is sitting back and watching the two giants wear eachother out before trying its hand.  Mostly this is because it will take time to surface, but if it is allowed to, Nintendo could not only prove the Wii the winner for this generation, but it would defy everything the sony and microsoft business models stand for.  It would be the equivilant of finding out the earth is round.  Sony and Microsoft would have nothing to stand on.

This alone wouldn't put Nintendo at the top and wouldn't allow the Wii to be number one.  But the Wii isn't designed to be the number one system.  The Wii is the first step in a multilevel plan to topple the industry and rebuild it from the ground up.  You have probably seen blogs about how Nintendo will save the gaming industry, this is what they are talking about.  Not about the Wii becoming number one in console domination, but in changing everything for the better.

In order to stop these over priced consoles and focus more on software that is fun rather than looks realistic Nintendo has adopted a distruption strategy.  It depends on how well the Wii is excepted and rather a gamer will fill confortable and benefit from this new way of gaming.  Making things harder will never get people to change their minds.  Only making it easier will.  Nintendo's next system will be announced roughly 3 years from now.  I can be quoted saying that on the gamespot boards a few times at least.

Most people take that comment as I am anti Nintendo, but its far from it, the reason the Wii is so cheap to make and buy is because Nintendo isn't planning on leaving it like this.  If Nintendo succeeds in its model, the Wii successor system, will not be a Wii2 or anything like that, it will be much like the leap from the Gamecube to the Wii, something completely different and the next stage of the disruption strategy.  Over time the market for gaming and Nintendo's market will grow if this works.

The key to Nintendo's victory isn't in battling head on, but by hitting their competitors weak points.  Sony and Microsoft are huge companies, if they have to change up to compete with what Nintendo is doing, it will take time and by the time they do, Nintendo's next console and idea will be ready to announce and the cycle will go all over again.  Luckily this only means good news for us gamers, Nintendo isn't trying to hurt us, they are trying to freshen the industry and make good money doing it.  Gamers win no matter what, but if Nintendo wins, gamers win with more money in their pockets and more fun game development over time.