Would Microsoft Have Entered the Console Wars Without the PlayStation?

That’s an interesting question. My personal guess would be that Microsoft would not have been as tempted.

As popular as games were at the time, it was an activity that was slowly but surely dropping in popularity, at least if we look just at the install bases of each console. The NES, which reigned supreme after Nintendo’s efforts to revitalize the video game console industry, sold around 62 million units. The SNES, a console home to many timeless classics such as Crono Trigger, interestingly did less well. It only managed to sell 49 million units worldwide. The N64, perhaps also due to the arrival of the PlayStation, only managed to sell around 30 million units. With the GameCube, this became even worse.

Declining Sales and Nintendo’s Challenges

Now it should be mentioned that consoles sold is not necessarily equal to the install base, as consoles break down and get replaced. However, it’s not a very good sign if Nintendo’s main consoles see a continuing drop in sales, a trend that started way before Sony entered the market. Basically, Nintendo had trouble keeping a grip on their fans and, as the Nintendo 64 had proven, were not willing to just easily give up on cartridges despite research on using optical media.

This is not helped by Nintendo’s stance on the whole thing, as Nintendo considers itself a toy company first and foremost and is willing to drop video games altogether if it isn’t profitable anymore. Had Nintendo continued to reign supreme as the main video game console, all we would have seen very likely was a declining industry. Microsoft would not have wanted to enter such an industry.

Sony’s Impact on the Market

Sony, however, when they introduced the PlayStation, did something Nintendo was not able to do at that time: it appealed to a whole new audience. With Nintendo and Sega video games not meant for PC were largely niche, meant for ‘nerds’ back when ‘nerdy’ was still considered an insult. With PlayStation, however, games started to appeal to more ‘mainstream’ people.

I believe a part of this was the usage of optical media. At the time, storage capacity was a massive deal, and cartridges simply couldn’t make ends meet because of big limitations and being expensive to manufacture. To compare, Nintendo 64 game cartridges could hold a maximum of 64MB per cartridge. Sure, this was amazing compared to the SNES whose space topped out at 6MB, but compared to the capacity of 650MB of a single CD, it was downright nothing.

Another thing that was working to Nintendo’s detriment was Nintendo’s own strategy of keeping everything family-friendly. With these two limitations gone on the PlayStation platform, developers had more room to make more ‘cinematic’ experiences with a much more serious tone.

Examples of Innovative Games on the PlayStation

For instance, we saw the birth of the survival horror genre, a genre that would not have been possible on a platform under Nintendo’s policy at least not in the shape and form it was presented on PlayStation. We saw Squaresoft making games filled with FMVs (Full Motion Videos) really making full use of the explosion of storage space on CDs, such as Final Fantasy 7, 8, and 9, all of which had multiple discs. We saw games like Metal Gear Solid, Grand Theft Auto, and many others that pushed the boundaries of what could be done on a home console.

Perhaps due to this, Sony managed to sell over 100 million units, even eclipsing the NES. Certainly, many of those sales are arguably due to people replacing broken consoles, as the PlayStation was not the most robust console. But 100 million is a massive number and more importantly, a number that once again put the console market in the spotlight.

Microsoft's Response to the Market

Considering how Microsoft entered the market, their focus and target audience seemed to indicate they were very much after the players that were playing PlayStation games. I am pretty sure that if Sony had not entered the console industry the way they did, Microsoft would not have done so either. The success of the PlayStation created a demand for more engaging, immersive gaming experiences, and Microsoft was quick to respond to that.

Conclusion

In conclusion, the PlayStation was a catalyst for change in the console industry. It not only changed the perception of what a video game console could do but also set the stage for new market opportunities. Microsoft's entry into the console wars was a direct result of the success and innovation demonstrated by the PlayStation. The market dynamics created by Sony allowed other players like Microsoft to enter and thrive, making the console industry more competitive and diverse than ever before.

Key Points:

Sony's PlayStation redefined the console gaming experience. Growth in optical media and storage capacity. Nintendo's family-friendly approach and focus on cartridges. The impact of the PlayStation on Microsoft's decision to enter the console market.

These factors collectively contributed to the significant changes in the video game industry, setting the stage for future innovations and challenges.