It is clearly obvious to all and sundry that this generation is over.  It has been won.  There is virtually zero chance that either the PS3 or 360 will capture enough market share to catch the Nintendo Wii.  But, there is more to the story as to why Nintendo has won this generation, besides the sales.

When Nintendo came out with the Wiimote, they were not taken seriously by the gaming 'purists'.  In fact they were outright ridiculed.  "A toy" they cried.  "It will never catch on" they continued.  Along with the jokes about the name of the console, they futher attempted to marginalise the Wii. 

Sony were a little concerned about the possibility of the Wii catching on with its motion controller.  They quickly dumped their Batterang controller and even more quickly, added motion control.  Monkey see - momkey do.

So many times it was told - the Wii is not in competition with the bigger and better HD consoles.  Of course, this was the catch-cry when it became obvious that the Wii was becoming a sales sensation.  Microsoft would boast that they were winning theconsole sales as the Wii didn't really count.

Then there was the constant cry of "fad" and how that fad would suddenly die.  In fact, they held on to that mantra for quite a while, but it seems to have disappeared from the vocabulary.

As it became painfully obvious to all, the Wii was commanding massive sales, not just of its console, but the games as well.  With both Microsoft and Sony losing money on their consoles, their respective marketing strategies had to be revisited.  That casual market had to be syphoned a little in their direction.  

Microsoft kicked in with their much cheaper Arcade console.  Surely the Wii sold more because it was cheaper?  Make the 360 cheaper than the Wii, throw in some Lips and Scene It and surely gamers would choose a HD 360?  Apparently not.  So console cost wasn't the problem it seems.

Sony just pushed Singstar and hoped for the best.  It didn't work.

This is where Nintendo wins far more than the console sales race.  When Microsoft showed us Natal and Sony kicked in with Ball-in-a-cup, they had given up - total capitulation.  Yet again Nintendo had shown the way, only to be followed.  No longer were Nintendo and their little Wii not a competitior, they were THE competitor and had to be beaten at their own game.

Even more remarkable is the fanbiy types who constantly derided the Wiimote and clung tightly to their traditional controller (which owes everything to Nintendo as well) like a fat cop holds on to his doughnut.  They now talk about the possibilities that this technology will bring to their respective consoles.  With rose tinted glasses firmly embedded on their faces, they truly espouse the theory that it could work with hardcore games.  Truly a remarkable quantum leap.  Will they accept and acknowledge that Nintendo got it right?  Not likely.  No, Nintendo screwed it all up apparently and that is why Microdoft and Sony must come in and do it right.

If Nintendo had failed in its marketing, then none of this would be happening.  It is the only reason for the change.  It shows the value and absolutely critical nature of needing a strong and innovative 3rd player in the market.  Without Nintendo, Microsoft and Sony would cause the games market to wither and die on the vine.

This catch-up is all about positioning for the next generation.

Forget this generation.  It is all over.  Sony may or may not have a better motion controller.  What does it matter?  How will they market it?  How much will it cost?  It is an additional peripheral, so it has be marketed accordingly.  What exactly is Sony's demographic now?  They are very expensive and many, many parents have already settled for a Wii as a family console.  Can Sony get the price low enough to be appealing to the right demographic?

So many questions and all open to what the market will do and react to any Sony marketing push.

What of price though?  Sony are already making a loss on each console.  In a recession, can they risk a bigger loss?  Even if they do, Nintendo make a profit on every console and have a much greater margin for a significant price reduction if they choose.  This will negate anything Sony try.  Who is to also say that Nintendo don't release a HD Wii upgrade next year and level the playing field?  I doubt that myself.

As for Microsoft, they have delivered a very good Eyetoy it seems.  How will they market it?  No controller at all comes with may limitations in gaming.  Sure, it would work in party games, but what about a serious game?  Who really wants to be pretending to be a soldier in COD 5?  Are you going to set up the loungeroom to pretend you are 5  again, playing war games?  I doubt it.  This has problems written all over it.  It is all good and stuff to have the technology, but how you apply it matters.

One last factor is the Nintendo Magic factor.  They make great games and have brilliant and recognised characters.  People want them.  they love them.  It isn't just the Wiimote selling the Wii, it is the classic franchises.  Sony and Microsoft will have difficulty pushing their own characters.  Maybe Halo Kart and Metal Gear Party would sell, but I kind of doubt it.

This is all about positioning as I said.  They are clearing the decks making room for their consoles to be motion controllable out of the box and marketed that way from the beginning.  Of course, the marketing will look familiar.  After all, Nintendo did it.

All comments here are simply my opinion.  They are based on a lifelong gaming habit that dates back to 1974.  If you don't agree, that is your right - it isn't personal.