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Misterd the whole point of the article is that Nintendo realizes that technology's purpose in gaming is to deliver new experiences.  Sony has delivered new experiences, but it was Nintendo and Sega who realized the need for more storage space for better story telling.  It was Nintendo who realized 3D gaming would draw in a huge set of gamers who uninterested in traditional 2D gaming.

Blue Ocean strategy seems to be Nintendo's entire corporate philosophy, it is just that during the N64 days, Sony was better at it.  I would go so far as to say that Nintendo lost it's focus during the Gamecube days, because it did not have technology doing any type of innovation.  At least with SNES Nintendo realized there would be a market for 3D games when it saw the success of semi-3D stuff in the end of the Genesis-SNES battle.

My point is that 3D games is what drew in older gamers who had not gamed before.  Of course gamers like you continued playing games.  If you read the Innovator's Dilemna it says something to the effect of corporations who seemingly abandon their old market to focus on the new one, end up keeping much of the old market in the end, as they still get their fix of traditional product, while they and the entirely new audience gets new products.

The NES was huge because the games were more sophisticated in every way - story telling, gameplay, length of game.

PS1 was huge because of 3D and the CD storage medium.

Wii seems likely to be big because of advances in interaction.

All other consoles are essentially battles in the red ocean looking for what new markets will want.  So again, Nintendo was the one who came to Sony about CDs in the late 80s/early 90s - they saw a blue ocean in how much genres would advance - especially the ones we take for granted now - sports, rpgs, platformers, shooters.  3D was huge and that is why the technology was pursued.  Nintendo doesn't just persue tech for the sake of tech.



People are difficult to govern because they have too much knowledge.

When there are more laws, there are more criminals.

- Lao Tzu