Xbox’s recent pivot toward a software focus has givenPlayStationan edge in the console market, but it’s not the first time that deciding to focus on other markets has shifted the state of the console wars. In 2025, the whole idea of console wars feels a bit silly, and whatever system anyone chooses to have in their household is no skin off my back. The stiff competition between brands like Xbox, PlayStation, Nintendo, and Sega defines a huge chunk of gaming history, however, and a lot of the biggest market shifts remain interesting to this day.
The original debut of the PlayStation was one of the most titanic upsets in the console market, and Xbox bursting onto the scene with the system-sellerHalowas another moment that sent shockwaves throughout the industry. As Nintendo reoriented its consoles around interesting gimmicks rather than graphical might,PlayStation and Xbox ended up in a seventh-generation duel, with the PS3 and Xbox 360 managing similar overall sales by the end of their lifespans. Considering theunstoppable might of the PS2, that was a big step down for PlayStation, and one of the biggest reasons is similar to Xbox’s tactics today.
Blu-Rays Made The PlayStation 3 A Tougher Sell
Not The Friendliest Price Point
The PS3 was an unconventional piece of hardware in many ways, butone of its boldest strokes was the switch from using a DVD player to Blu-Ray. This obviously had some technical advantages, but early in the Blu-ray era, this also played no small part in increasing the cost of the system. Its cheapest launch model cost $500 against the Xbox 360’s $400 tag, a hurdle that made it hard to pick up traction against Microsoft’s already-released console.
While the inclusion of a Blu-ray player wasn’t the only hardware difference, it definitely had an impact on the manufacturing cost, andmost of the PS3’s potential tech advantages struggled to justify the pricein practice. A complicated “cell” processor offered plenty of power, but developers struggled to optimize games for the unusual system architecture, meaning that the Xbox 360 often proved equal or even outstripped the PS3 when running multi-platform titles. With a cheaper price point and the sheer branding power of Master Chief, Xbox was far more competitive with PlayStation than anyone had been in the previous generation.
Sony’s Strategy Worked In The Long Run
Playing The Long Game
The PS3’s inclusion of a Blu-ray player wasn’t just about gaining a technical advantage. At the time of the PS3’s release, it was still unclear what disc format would succeed DVD, andBlu-ray discs were locked in competition with the HD-DVD format. Blu-ray was essentially Sony’s format, and by sneaking Blu-ray players into households through the introduction of the PS3, Sony was able to pick up more traction than HD-DVD possibly could.
HD-DVD was primarily supported by Toshiba, which was also a major Sony rival in the TV hardware space for years.
Even if this came at a cost for the PS3, the system still pulled through,ultimately outselling the Xbox 360 by a few million unitsby the end of its lifespan. The price certainly sacrificed some sales, but it secured another major interest for Sony that paid off for years to come. Microsoft and Sony are both companies with diverse interests beyond console hardware sales, and, inevitably, other interests will sometimes take precedence.
Microsoft Is Prioritizing Other Markets Over Xbox Hardware
A Diverse Software Strategy
PC is also a centerpiece of Microsoft’s game, and even if its Xbox hardware presence continues to recede, incentivizing PC sales and supporting a PC software library is still to the company’s benefit. Although returning to the intense console duel of the seventh generation might not be possible without a huge fumble onPlayStation’s part,Xboxseems to be growing increasingly comfortable with a world where that isn’t the goal. Whether that’s a good thing is another question entirely, but it isn’t the first time that console sales have taken a hit in the name of a broader strategy.
