By using this site, you agree to our Privacy Policy and our Terms of Use. Close
freebs2 said:

If the number of Ps3 + 360 sold collectively is more as or less the Ps2 + OG Xbox it means than the numeber of new customers who entered the market is more or less equal to number of those who left.

You have competition when customers percive that two or more goods are both viable choices to satisfy the same need. Canonical example: mobile phones. Phones weren't competing with laptops and computers unitil they beacame a viable tool to browse the internet - so two viable options, same need.

The customers who wanted to play FPS / online games didn't even percieve the Wii as viable alternative. Same goes for those who bought the Wii for Wiisports. The Wii didn't have any direct competitor unitil the Kinect came out.

That's not to say the Wii didn't compete with X360 and Ps3 at all, but the competiton was marginal. The Wii was percieved as tool to satisfy a different need than PS3/X360, and that also explains why many PS3/X360 players also had a Wii in their houses.

I think we are saying the same thing here just from different angles; that Wii appealed to demographics that PS3/360 didn't and vice versa, but that there was still overlap; consumers for whom both were viable purchases. For these latter consumers, getting both wasn't always an option, hence there was competition.