I feel a MASSIVE change in the gaming industry

[Scruff7]

I'm not entirely sure you have the right idea about Capitalism and how the market works. If MS and Sony are making a profit, then they will continue in the market. theyare both aimed at ver different audiences to the Wii, and they both have much larger stategic aims (ie.control of the living room and te development of the integrated multimedia hub).

Yes people want the Wii, and why not? it's fun. But everyone also wanted an iPod. did that mean that no-one other companies went into the market? of course tey did, and they made massive profits from it. just becuase there is one very successful system does not mean that no other companies will go into the same market and pose competition?

Similarly though, i've had a number of parties at my place and people have seen what the PS3 can do. after hearing all the bad hype they see te system for themselves and are impressed with it's capabilities. they want one too. i've heard the same off 360 owners, it's not limited to the Wii. but what te Wii does have, is mass market appeal. people who have never been into computer games, aren't intersted in high end graphics, long strory lines and don't know much about hi-def are into it. not for games like SMG, but for games like Wii Sports, Play and Fit. the people i know who want a Wii are generally people i work with, older types who aven't a clue about 'harcore' games and think the console industry is for geeks and kids. they don't view the Wii as a games console and don't know anything about the PS3 or the 360. totally different market.

Your analogy of the Wii and iPod is very good i feel. yes, they are both likely to dominate the market, and make their companies mountains of money. but, they are both partly built on hype. people wanted an iPod because it was cool, funky, looked good, did cools things, but it was not the best gadget on the market, there were many MP3 players that did far better jobs than the iPod did, but they were never going to hijack the iPod bus due to the demand that had been created for it in the mass market.

There will always be a market for hardcore gamers who are obsessed with power and graphics (like many PS3 and 360 fans), who want that integrated multimedia hub, and so, there will be continued demand for them, and enough demand to make a profit.

In real terms, there is a lot more profit at stake here for MS and Sony than what Nintendo have managed so far. if either MS or Sony win the wider format war, and console war, their control over the ENTIRE home electronics industry will be incredable.