As i said at the end, this is a VERY VERY simplsitic analysis. There are other facets which i failed to mention as i wanted to get the main part out there to start with. I will make one addition however.
Multifunctionality - This is a dual edge sword in terms of mass market. Mutifunctionality can be used to add percieved value to a product, for very little cost. Mobile phones are the ideal example. A lot of people buy a phone based on mutifunctional features (camera, MP3 player, USB mass storage, etc) and then still buy standalone products such as digital cameras, MP3 players, etc. In the mobile phone market this value adding mentality works well. However, as i said before, there is a dual edge to this sword. That dual edge is comprimise. Multifunctionality works well in mobile phones because rarely does the base purpose for the product suffer due to the added functions. However, the added functions are often not as capable because they have essentially been crammed into the device. Multifunctionality works against you when your base product suffers too much due to the added functions, or the added functions appear pointless.
Nintendo - blatantly do not adopt any multifunctionality in their base products, but oft allow add-ons. This policy has hurt them in the current videogame market. Agree that just about everyone has a DVD player now, so having a DVD player in the Wii isn't necessary, however it would have added to the percieved value of the product. Perception of value is a key mass consumer requirement.
Microsoft - Have had a half baked attempt at multifunctionality through the HDDVD add-on drive. May have been better to have a DVD drive that was capable through firmware upgrade to HDDVD playback. This could then be purchased. Flow on from that would be that half way through the life cycle it HDDVD playback for gaming content could be enabled to increase game storage capacity.
Sony - Go too far with multifunctionality and fall on the worng side of the sword. HiFi stores tout the PS3 as a BR cheaper player, games stores tout it as a powerful gaming device. The use of BR made the gaming device expensive for the gaming device suffered for the inclusion of a BR player. The BR player suffered for the fact that it was built on a gaming device. The added value negates itself as each end suffers. Mutifunctionality for Sony has however succeeded in terms of generating a larger BR user base than HDDVD, making appear more commercially viable as a HD format.
@ Mnementh - very true about software. Specifically did not discuss this as there are a number of other threads that already discuss this. This analysis was looking to extend the view beyond just the videogame industry microcosm and look at the wider consumer market of which the games industry is part of a competing for your consumer dollars.
@ allstar35 - Having good balance amongst all the factors does not make your product a "winner" every time. the term "winner" is open to any number of interpretations, such as market leader, most sales, most profits, etc. I think that a better way of looking at it is success in the mass consumer market. Where success is essentially generation of profit for the company (and this profit doesn't need to be necessarily money, good will is also a form of profit, as is brand recognition. The non monetary profit from a product generates investor intrest and general investment, so profit by proxy)
@slorgnet - Yes, sony is part of the wider consortium, was keeping things generic and simple though. Sony does however stand to gain a lot from BR as opposed to hardware or media only companies as it has a hand in both camps. I also actually agree that BR is a better media format. However i will post again to discuss that as this post is already getting too long. I agree that the initial release phase of the PS3 is not mass consumer oriented. However i do not feel that this is through good management that this situation has arisen. Microsoft has been reasonably savvy so far. I both agree and disagree with your point on microsoft. If the Wii with DVD sized content becomes the new market baseline this generation then microsoft loses nothing, as it still hold technical superiority over the Wii. However they have restricted the Xbox in terms of future development. In the end its all a trade off on the keep cost low, produce technically superior product principal.
Finally it must be remembered that all this is said with the benefit of hindsight. Hindsight is a huge factor in any analysis, and this is a simple analysis that is aiming to build on others dicussed on the forums here such a software catalogue, publicity and advertising for the products, etc, media releases, development costs, etc.
