Nintendo more than rocked the gaming world when it came out with the Wii gaming console three years back by turning an entirely new demography of gamers on to gaming. Till date, Nintendo has sold nearly 35 million consoles, including 12.6 million in the U.S., Nintendo's biggest market. That's lower than Sony's PlayStation 2, which has sold 43 million units since 2000. But it's still pretty high for a console that, at launch, was technologically a generation behind its chief competitors, Sony's PlayStation 3, with 13 million units in users' living rooms, and Microsoft's Xbox 360, with 23 million units.

Another factor in enticing those casual users is keeping its console cheap. "The key thing about Nintendo is they want their things to be at price points that anyone can respond to," says Hiroshi Kamide, director of research at KBC Securities Japan. Nintendo's strategy is to buy inexpensive components instead of making them in-house; allowing the Wii to sell for $260 while the PS3 costs $300. Nintendo also sells 60% of Wii games itself, compared with 30% for Microsoft and 15% for Sony. Wii users are expected to buy the most games this year, 220 million, compared with 120 million PS3 games and 125 million for the Xbox 360.

 


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