What fire in what core market? I watched that video and then I considered Microsofts core markets. Their Windows market? Its fine. Their office market? Fine. Xbox 360? Fine, I.E. they are making profits which are at the industry norms for a single console.

Finally what have they done to prove they are not interested in an expanded market? Did they not pave the way in this industry to take advantage of on demand services like Netflix and movies on demand. Are they not interested in ESPN and Zune music? These are all expanded beyond the original core market.

The fire in MS's core market is caused by Kinect, since E3, Kinect has been roundly bashed and slammed, because MS's direction with Kinect is at odds with their core market, where Wii had people sprinting to get in line to try it out, Kinect has been viewed very negatively.

I hope he's right about the Wii 2. That just means more fun for us Nintendo fans :P

I read the first 50 posts of this thread.

So what's he saying?  That the PS3 will soon be the weakest console on the market and that everyone else will be playing on the next level of gaming while Sony still pushes their old console?  Is he saying that the PS3 will have a 10 year life span like the PS1/PS2 and ignoring the fact that the PS1 was about 5 years old when the PS2 came out and that the PS2 was about 5 years old when the PS3 came out?  Is he saying that they can give Nintendo/Microsoft a headstart like they did with the Saturn and the Dreamcast--because Nintendo/Microsoft are NOT Sega and I think they demonstrated that this generation.

Or is he just saying that they'll release their next console last?   Maybe we're reading too much into this.

If you want to look at it this way, then no one is disruptive.  The NES only improved on things learned from the Atari gen.  The SNES was really only a graphical upgrade from the NES.  And so on and so on.  Even the Wii was just an improvement on already existing motion controllers.  I mean it seems the argument is Nintendo always changes the game (or are "disruptive), but others, regardless of what they bring to the industry, are just improving on what Nintendo did.  That is just rediculous.

As far as real game changers go, each company has brought us something.  In the NES era, Nintendo popularized an improved D-Pad and the Start & Select buttons.  During the SNES era, Nintendo  popularized the shoulder buttons, as well as the four action buttons arranged in a "diamond."  During the PS1 era, Sony popularized the dual analog, as well as an overall control design that many have emulated since.  They also standardized disc-based media.  During the PS2 era, Sony helped push DVD into the huge success it became.  MS also brought about Live, showing how online gaming could be big on consoles, as well as a standard HDD in every console (something they have oddly abandoned this gen).  During this gen, which I will call the Wii era, Nintendo has popularized motion controls in gaming.  Sony has brought out a new media format that won't constrain developers as games get larger, with better graphics/HD textures.  And MS has brought us Achievements, an added reward for further excelling in a game.  These have all been game changers.

well said

i find this not surprising - however I don't think Sony will wait too long after the others - one year max

First, Microsoft only cared about the new market in 2009, almost 3 years since it was formed with the Wii. if they actually cared, we would have seen something in 2007 and 2008. Their other E3 press conferences and actions do not align with the expanded market.

The fire is breaking out iver Kinect. A lot of XBox fans are ferious over Kinect. Sony has motion controls too, but they did not have the sheer outrage that Microsoft fans did over Microsoft's conference. Here is an example:

To say I was disappointed with Kinect would be putting it mildly. After waiting at the Galen Center for a couple of hours, other than the name, Kinect, nothing was revealed except a handful of pre-recorded demos where actors clearly pretended to control the on-screen characters (avatars) with their own body movement. At several points the avatars would move before the actors did, ruining the illusion of a real live demo of Kinect. This body-synch debacle makes Milli Vanilli’s legendary lip-synch outrage look tame by comparison.

I did not see the anger here, but I definatly saw it at other forums (like NeoGAF). Microsoft fans are not happy. Nintendo never got any flack for their motion controls at E3 06. Sony didn't either with Move. Yet, everyone hated Microsoft's conference. It is a sign of things to come. This will explain it better.

@thismeintiel: Scott Anthony is a co-author for the disruption books. He also runs a firm that helps companies with disruptive ideas. If he says the Wii Remote is a disruption, it is. No argument.

EDIT: You are trying to over apply disruption. A disruptive innovation is doing it different. A sustaining innovation in gaming would be better graphics. A disruptive innovation would be motion controls.

NES was disruptive, gaming was no longer on consoles, they were dead after the crash, gaming was on gaming PC's, the NES was doing things differently than they were, it was a crappy product for crappy consumers, those who were nonconsumers of gaming PC's or overshot by the gaming PC's

Motion controllers weren't being used on consoles, not as the main controllers.

People need to realize something, disruption is not necessarily about having tech that doesn't exist, its about using it in ways that don't exist, that target nonconsumption or overshot consumers

@ smashchu2

Because some guy I've never heard of co-wrote the book on what is "disruptive" and what is not, there is no argument?  Sorry, I don't buy into that.  I will choose what I want to see as influentual to gaming in big and positive ways.  And someone coming up with their own terms to try to make others' contributions seem not as important will not change the impact those contributions have had.  And sorry, Nintendo is not the only one with these "disruptive" ideas.