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The_Liquid_Laser said:

The problem with this argument is that all 3 are actually competing for all the demographics.  When Nintendo has exclusives like Bayonnetta or Xenoblade Chronicles, they are competing for the 13-35 year old male.  Not to mention that this category really likes games like BotW or Smash Bros as well.  And when Sony or Microsoft produces games like Little Big Planet, Knack or anything with the Minecraft label, then they are competing outside of the 13-35 male demographic.  On top of this all 3 have plenty of third party games that appeal to a variety of demographics.  

All 3 companies are trying to get all of the current gaming market onto their platform.  They might each have a different focus, but they are similar enough to still be directly competing.  You might as well say Netflix, Hulu, Apple+ and Disney+ are not competing streaming platforms.  They each have a different focus, but they still directly compete with one another.  They are offering a similar type of product and aiming it at the same broad group of consumers.  These companies are directly competing.  The big 3 gaming companies are doing the same thing.

I agree some what with this to a certain extent as I can see where Liquid is coming from Nintendo does compete with Sony and MS directly I think what people are getting mixed up on is that they have associated competing with the position the platform is aiming for and this has been caught up in a the midst of another argument on platforms affecting each other which works on an entirely different concept altogether.

A console's targeted role is what determines just how much it fights for a position in the market that another platform is aiming for like how 360 and PS3 aimed for the same type of role this determines whether it'll impact another platform however this doesn't mean that they're not competing directly with a platform aiming for a different type of position as if the is significant overlap then that flat out means the is direct competition with the platform. Liquid gave some examples here with Bayonetta which competes for the same type of crowd who play games like DMC I'll give another in Dragon Quest we recently got confirmation the next game is in development if both Switch and PS4 got the game then they are direct competing for the DQ fanbase and as the library of both platforms has enough overlap for these situations to occur numerous times they are competing directly even though they aim for different positions in the market. 40% of NS owners according to Nintendo have one of the other platforms as well highlighting the significant overlap.

Basically platforms can directly compete due to overlap and as a result not really impact each other but they are direct competitors essentially even though they're not going for the same position, Wii for one didn't have enough overlap to really directly compete with PS3 and 360 so can be classed not directly competing and only doing that indirectly with them.