By using this site, you agree to our Privacy Policy and our Terms of Use. Close

As it is right now, none of the consoles are saturated. The PS4-XBONE have a PS360 mainstream market to appeal to, and the Wii U has a Wii/PS2 mainstream. The advantage the Wii U has, which the others do not is that many will buy it as a supplemental console for playing Nintendo games, while those who want a cheap console to replace their Wii or PS2 will buy it for its low costs (the Wii U has a lot of potential for price drops.) If we learned anything from last generation, consoles can make a comeback in sales when the market is readyfor them. I think all three manufacturers are more focused on reducing losses and maximizing profit in a shrinking market more than anything else (they're on the defensive, not the offensive.) Console sales aren't as important when a market is unhealthy, profits become crucial. And which company is harmed by this depends on its internal elasticity. Nintendo is obviously more (relatively) invested in the video-game market than Sony and Microsoft (who have profits and losses in other divisions and might consider focusing on them) and therefore they are the most inelastic. They are the ones who need to succeed the most, but also the ones who have the motivation to succeed the most. Sony and Microsoft have positive and negative externalities which affect their performance. So really, it all depends on the unpredictable market forces.