I do agree with you there, but I think Microsoft had higher expectations this time around. No one expected the Wii to be the hit it was and Microsoft was trying to get the #1 spot this time but now it's more likely when all is said and done that they'll end up in #3 position.
Plus despite all they've done to try and court it, they still failed to capture the Japanese market. And with the European market now the biggest video game market, they still have this perception of being a North American console.
Yes, no one expected Nintendo to be hit it was, and yes, Microsoft was going to be top, to be #1.
But to try to be #1 and actually do it are two diferent things...and no one can laugh at Microsoft if they end on failing.
Nintendo is around "forever" and the Playstation was a huge sucess from the get go.
Even so, the original Xbox made it to #2, that´s a huge deal to appear and win againts Nintendo.
About the markets...
The Japonese one is almost impossible for MS to grab, not because MS lacks in quality or something, but why would they go with the US console, when they have two national ones?
Besides, their tastes are very diferent from the western ones...
Europe is still up for grabs, and if we look at it as it is right now, the 360 is still ahead of the PS3 (ok, the diference is less than 1 million).
Besides, Europe worships the Playstation to the point of stupidity (i live here, i know), many don´t even what a xbox is, Playstation is almost another word for video game.
To be fair, I don't think that is because of what Microsoft has done in making a great console, but because of Sony asstardedly launching a $599 US Dollars video game machine that had no games, no rumble, and a horrible PR machine.
If Sony released the Playstation 3 at a much cheaper price on par with the Xbox 360 they probably would have done much better.
And why was that?
Pure arrogance, "we are the Playstation and everyone loves the Playstation", guess what, they were wrong.
That´s why, come what may, Sony is the big loser this generation, people are not willing "to sell their house" to buy a PS3.
But people bought a 360, people were willing to get to know the Xbox brand, and that is a gigantic sucess for Microsoft.
Once i read (don´t remember where nor did i ever found it again) that Microsoft have a 3 deal plan when it comes to the Xbox.
1st generation was to get brand recognition and gather a fanbase.
2nd generation was to consolidate that recognition and fanbase, get into other markets (Japonese and European) and expande that same fanbase
3rd generation, to be the #1 selling console
If we look at it, they doing exactly what they are aiming for
That I don't agree on. They were the newcomer last generation, not so much anymore. They developed a rather good brand recognition last generation so to say that they're still seen as a newcomer, especially when it has a massive first party games division and backed by one of the biggest corporations in the world is rather off don't you think?
But they are, outside the US they are the newcomers
Microsoft would obviously be doing a lot better if it weren't for the RROD plaguing their image.
More even showing that the Playstation is losing strenght.
If people look at history, the Playstation was always "alone" when they won.
Besides, their biggest asset is Europe, which like i said before (or in my "bought a DS" thread) never got into the all console fever, until the Playstation arrived.
Sony had an all new market to explore, a market that belonged to the PC.
Sega was "dying" since the 16 bits era (blame it on the CD, they killed almost every console, except the SNES, because they gave up on it on the last minute; and the PC, which was the only one that became better because of it); and Nintendo, not only was still cartridge (outdated for some), they lost when Europe got the "war".
Last generation, once again, they had no one to go against them.
Sega died (once again, they were dying since the 16 bits), Nintendo was still trying to return to form after the previous generation, and the Xbox only arrived 1 year later and was a newcomer.
The last two years, the Xbox got a lot of momentum, which only made them #2, but made Sony tremble a bit and look at them as real competition.
Note that nothing i said was to make the Playstation feel inferior. I have a PS1 and PS2, will get a PS3 by September, but i´m not a big fan of Sony, but i´ll buy it for the games, there are some great ones outhere, and the developers can´t be blamed.