| Conina said: Microsoft was really demoralized when they launched the Xbox360. Nintendo was really demoralized when they launched the Wii. |
The Wii is proof that Nintendo gave up trying to compete directly with Sony and had to start carving out a new market for themselves by focusing on innovation. The PS2 crushed the Yamauchi style management at Nintendo and created a much more humble company. The PS1 had a hand in sending this message to Nintendo also, but after the N64 Nintendo still thought that they could reclaim the glory days that they had in the SNES and NES days with faster hardware. The PS2 completely crushed any hope of this being possible.
If you don't believe that Nintendo was terrified of Sony during the PS2 era just look at how they pulled out all the stops and hastily replaced their three year old handheld platform as soon as Sony started to tread into Nintendo's handheld territory with the PSP.
I will admit that Microsoft wasn't demoralized by the PS2.
