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Immortal said:
Optimistically, this generation should end up at 120m Wiis, 105m per HD console, 160m DSs and 80m PSPs. That adds up to 570m.
But let's take it further. Had everything gone right for everyone this generation (PS3 launch goes well, RROD doesn't happen, Wii gets third party support, Wii/DS aren't left to die, etc.), we'd be looking at, say, 160m for Wii/PS3, 135m for 360, 195m for DS and 100m for PSP in order to get 750m. So, sure, why not? Seems plausible enough.

the thing you are forgetting is that high sales of one console directly correlates with low sales of another. Had Sony launched its console with a good library and a decent price, the 360 would have never become so popular. Had the RROD not tarnished the 360, the PS3 would have never been able to catch up when the 360 was unarguably the better choice both cost wise and game library wise. Had wii support not gone to hell so quickly, ps3/360 would have never got big boosts in sales 2010-2011, etc.

Personally I think this will end up being the biggest gen, in terms of "dedicated" gaming consoles and handhelds. I don't even think new dedicated gaming devices will even exist in 15 years.