The NPD numbers for April just recently hit the internet, and message boards are rife with reaction stemming from Nintendo’s dominance over Microsoft and Sony in terms of hardware. We’re talking about Wii outselling the Xbox 360 and the PlayStation 3 each by nearly 4 to 1—and that’s in April! Granted, the Wii did see the release of Mario Kart Wii, supported by Super Smash Bros. Brawl and Guitar Hero III… but Grand Theft Auto was supposed to boost sales of Xbox 360 and PlayStation 3 units. 

What is happening here? Why is a console that is clearly underpowered when compared to its competition and which has average (at best) third-party support poised to take the installed userbase lead in the United States away from Microsoft, which has a one-year head start? What are Microsoft and Sony doing wrong… or what is Nintendo doing so right? 

There are a few possible factors to consider here. For starters, it’s fair to look at the dismal state of the United States economy. Despite assertions that video games are “recession-proof”, the fact that there are two consoles selling at more than the critical $300 price point likely has more to do with the current situation than anything else. The Xbox 360 has been the only console priced at more than $300 to sell well at retail; other consoles above that price point like the 3DO, Sega Saturn, and Neo-Geo all suffered a dismal fate in terms of sales. While this feat is to Microsoft’s credit, as the economy has gradually accelerated into sour territory, sales of Xbox 360 units have suffered. The rising cost of games hasn’t helped Microsoft or Sony, either. After games prices had remained the same for the balance of two console generations, this current generation saw a $10 jump per game for Xbox 360 and PlayStation 3 titles.  

Speaking of the PlayStation 3, it sits in last place—a stark contrast from the juggernaut that was the PlayStation 2, which sold over 41 million units worldwide and dominated the last console generation. The PlayStation 3, despite a relatively recent price drop, still stands as the most expensive console option on the market. There’s been hope that the recent victory of Blu-Ray as the accepted standard for high-definition movies would bolster sales, but adoption of high definition televisions has been slow to materialize, thus curtailing the need for a Blu-Ray player—let alone a PlayStation 3 (or Xbox 360).  

High definition capability also comes into play here. The Xbox 360 and PlayStation 3 both support high definition resolutions and screens, and yet the average American household isn’t yet close to owning even one HD monitor. The Wii, meanwhile, looks and plays as well on a standard definition screen as it does an HD one. It leads one to wonder whether Microsoft and Sony were too confident in the adoption of high definition by the average consumer. There’s almost a sense of apathy about high definition viewing among most people.  

One other key statistic lies in the continued strong sales of the PlayStation 2, despite its days of relevancy waning to a close. Could it be that many gaming consumers just weren’t ready for a new generation of consoles? Looking at the numbers for April, the PlayStation 2 still managed to sell over 124,000 units. It’s also a relatively cheap alternative for gaming consumers, too; games are cheap (and cheaper if purchased pre-owned), the console sells for about half of what the Wii costs, and the system’s library continues to expand with a few new titles every month. It can also be argued that the lifespan of the original Xbox could also have been extended, had Microsoft not decided to abandon the platform in favor of the Xbox 360. It’s plausible to believe that we could still be playing and enjoying the same consoles we were playing five years ago, except possibly in the case of the Gamecube.  

Nintendo, meanwhile, is enjoying its resurgence to a dominant position and is doing so by its own rules. The steamroller success of the Wii and its motion-sensing control options is forcing third-party publishers to reshuffle their priorities and commit to Nintendo. This is a drastic turn of events for Nintendo, who has been criticized in generations past for not making enough of an effort to pursue and strengthen third-party ties. It’s now legitimate for shareholders to complain to third-party publishers about certain titles not being available on the Wii, rather than complaining to Nintendo about not pursuing the licensing of certain games.  

Nintendo’s success revolves around marketing and appealing to game players of all types, plus capitalizing on its new controller. Self-proclaimed “hardcore” gamers have titles from familiar franchises on the Wii, including new installments in the Mario, Zelda, and Metroid series. Less-serious gamers can have hours of fun with Wii Sports and the upcoming Wii Fit. There are brain games, word games, sports games, action games, and more.  

The motion-sensing features of the Wiimote certainly add a dimension to gameplay that we just haven’t experienced much before, if at all. Leveling the Wiimote like a bat and swinging to hit a pitch or cocking it back and thrusting ahead to cast your fishing line out on the lake adds a new sense of interactivity that more traditional games have not really seen. We’ve been playing games the same way for generations until now, and it is a new experience to actually have to stand and do a little work while playing rather than pressing some buttons and wiggling an analog stick.  

It’s really tough to focus on one reason why the numbers are currently where they are. It seems easy to say that a simple price drop will narrow the gap a little bit—or to at least revive flagging sales of the Xbox 360 and PlayStation 3 consoles—but it’s likely going to take more than that to slow the Wii down. It’s now really more of a battle of attrition between Microsoft and Sony to see which of its consoles can remain relevant among third-party publishers, investors, and the most important party: gamers themselves.