The Wii goes after a different market to the 360 and the PS3. Seriously, take a look at what's on the shelves in a gaming store, the bulk of titles out are casual and party games that the 'serious gamers' aren't interested in. Obviously there's plenty of money in that for Nintendo, but that market is still smaller than the 'high-end' market. If either Microsoft or Sony make a low-powered console, they are ceeding the 'high-end' market to their current competitor, and then attempting to compete directly with Nintendo, which has huge brand recognition and developer base in the sector. This is not a winning proposition; Sony might conceivably be forced into it for financial reasons, but even moreso than Microsoft, a low-end PS4 would have a hard time competing against the legacy PS3. Also Sony have been positioning their brand as the 'premium luxury console' (dubious but never mind that now) and turning that around to 'cheap and cheerful' would be very difficult. Finally there is PC gaming; the power of recent consoles and rampant piracy on the PC have been pushing PC gaming into a niche (MMORPGs excepted). However if console power stagnates, with services like Steam getting a handle on piracy, the PC will start to claim market share back.Stargate Nerd wrote:I don't expect Microsoft and Sony to come out with super expensive hard ware next time, seeing how Nintendo has been beating them handily with a souped up Gamecube. Especially Sony might not want to create another debacle that almost erases any profit they ever made with the PS1+2 all by itself.
As for the PS3 'debacle', I doubt anyone in Sony Computer Entertainment would be prepared to call it that, despite their massive market share drop since the last console generation.