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Mr Khan said:

I think the whole problem is that Nintendo stepped in to save an industry that, for all appearances, didn't need saving at all. An industry that was growing under the conventional thought processes that "bigger was better," that more power and sophistication would lead to greater innovation, and eventually to greater marketshare as consoles inevitably diversified into multimedia centers, which was how the whole thing would go mainstream

 

Nintendo turned that whole philosophy upside down, and it is threatening to quite a few groups out there that had really embedded themselves in the old ways of thinking and doing. Ironically, the groups most opposed to what Nintendo is doing have the least to lose from a total revolution, groups like Epic, Bethesda, and BioWare, which could just go back to PC gaming and be almost as happy

You bring up a great point that I've never thought of before - Sony and MS both thought that the way to increase mainstream appeal and the industry of video games as a whole was to try and make the video game system into the most popular household media center. Never thinking that the actual barrier was "accessibility"

Nintendo saw this and took a chance... and for it, they're raking in billions...