Even though the victor of a console war simply comes down to who sold the most consoles, there are many factors that can come into play when analyzing the war. Just because a company doesn’t sell as many consoles as another does not mean that they are performing poorly.

One aspect that is often overlooked is market share to profit ratio. Sony and Nintendo are currently making a profit in their video game ventures, and Microsoft is losing money in its video game division. Nintendo holds only 15% of the video game market in the United States, but they are operating with a 25% profit margin, which is one of the best in the industry. Sony, who holds 70% of the market in the United States is operating with a smaller profit margin than Nintendo who holds much less of the market.

Another aspect of the console wars is how much of a presence a company leaves in the industry. Nintendo has had the most long-term success in the industry and has established itself as a very influential and lasting power. Satoru Iwata, Nintendo’s president, sees his company remaining in the console market well into the future because the first thing that comes to many people’s minds when thinking “video game legacy” is Nintendo. “Playing Nintendo” is a phrase that was often used to describe playing video games. Sony’s venture into the console market took place eleven years ago, and since then, has made a huge name for itself in it. With the decline of Nintendo’s control of the market, the PlayStation brand is now what many gamers first think of when video games are mentioned. Microsoft, which debuted its own console in 2001, is slowly starting to gain some respect for itself in the video game industry. Microsoft is the modifier’s dream, and many people think Xbox when envisioning console customization.

These are just a few of the aspects that should be taken into account when determining the victor of the console war; however, it can be hard to accurately measure factors such as these. That is the main reason why console sales determine the winner.

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