Stratechery Consoles and Competition
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Dec 12, 2022 Explore the fierce console wars as Sony, Sega, and Nintendo adapt to the shift from 2D to 3D gaming. Delve into the landscape of video game distribution, highlighting Activision's groundbreaking role and Nintendo's revival after the 1983 crash. Unpack the heated rivalry between Sony and Microsoft, including regulatory challenges and acquisition controversies. Finally, discover how acquisitions are reshaping competition and business models, moving the industry towards subscription services and emphasizing the need for fair developer compensation.
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Sega's Open Approach
- Sega, facing pressure from Electronic Arts, loosened its control over third-party developers.
- This approach helped Sega compete against Nintendo.
Sony's PlayStation Strategy
- Partnering with Namco helped Sony secure key launch titles like Ridge Racer for the original PlayStation.
- Sony's lower royalty rates and CD-ROM format also attracted developers.
PS2 Advantage
- The PlayStation 2's backwards compatibility and larger storage capacity through DVDs contributed to its success.
- This highlighted the importance of hardware choices.