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HappySqurriel said:

Personally, I'm a lot more worried about what would happen to the industry if the Wii wasn't successful. Microsoft and Sony have been following a fairly standard strategy of releasing (basically) the exact same product with "bonus" features, better technical specifications, and at a higher price ... The next step in this process is a $1000 console that you buy to play the exact same first person shooters, racing games, and sports simulations at a higher resolution with improved graphics.

Whether or not Sony and Microsoft would admit it to the outside world, the success of the Wii and Nintendo DS will have a dramatic impact on their strategy for the next generation; they may or may not adopt motion controls like the Wii did but they certainly will be thinking of more interesting user input devices; they will probably think of what is the processing power that is needed rather than attempting to push the limits without reason; and they will think of what the typical consumer is willing to pay rather than what the high end consumer can afford when pricing their console.


This is a big statement with a lot of truth in it.  I very much doubt the PS3 would be down to even $399 now had it not been for Nintendo's fiece competition at the $250 level.