Console Wars - Sixth Generation

Sixth Generation

Sega’s Dreamcast, the first sixth-generation console, debuted in Japan on November 27, 1998. As the first console to feature a built-in modem, the Dreamcast offered players a new console gaming experience; users were able to play games with one another via the Internet. The Dreamcast was the sole sixth-generation console for over a year, until Sony released the PlayStation 2. In early 2001, however, Sega announced its discontinuation of the Dreamcast; it adjusted its company strategy to abandon the console industry and focus on third-party development. Therefore, the Dreamcast left the market as the sixth-generation competition began to increase.

On March 4, 2000, Sony released the PlayStation 2 in Japan. The console featured a 294.912 MHz processor—an improvement over the Dreamcast’s 200 MHz processor—and promoted backward compatibility with PlayStation games. Unlike previous consoles, the PlayStation 2 could play DVDs, creating additional value for consumers interested in purchasing both a DVD player and gaming console. Within two days of the PlayStation 2’s release, Sony set a new record by selling 1 million consoles. The initial supply did not meet the demand; there was a shortage even among those who preordered, which led to inflated reselling and reported thefts. Although the PlayStation 2 did not originally focus on Internet connectivity, Sony developed an external adapter that enabled online gaming for select titles after the Xbox’s release.

Nintendo released the GameCube in Japan on September 14, 2001. Unlike previous Nintendo consoles, which used game cartridges, the GameCube used optical discs similar to MiniDVDs. The size of the discs, however, restricted users from playing regular DVDs and CDs on the console. With an introductory price of $199, the GameCube cost approximately $100 less than the PlayStation 2 and Xbox—a selling point for price-conscious consumers. The console offered signature family-friendly games, such as Luigi’s Mansion, in addition to third-party titles, including the more mature games Eternal Darkness: Sanity’s Requiem and Resident Evil 4.

On November 15, 2001, Microsoft entered the console industry by releasing the Xbox in North America. The Xbox featured internal storage capacity, allowing users to save games and download content directly to the console. Like the PlayStation 2, the Xbox also played DVDs; however, it required an external add-on. The release of Xbox Live, a subscription-based online gaming service, allowed users to play compatible titles online. Within two months of Xbox Live’s release, 250,000 users had subscribed, exceeding the company’s projections.

Overall, the sixth generation expanded gaming consoles into a broader entertainment experience, whether through online gaming or the ability to play DVDs. As seventh-generation consoles overtook the market, Nintendo and Microsoft discontinued the GameCube and Xbox. Sony, on the other hand, continued to produce the PlayStation 2 after the PlayStation 3’s release in 2006. In 2009, Sony announced that PlayStation 2 production would continue until demand decreases. Therefore, sustained PlayStation 2 purchases continue to increase the console’s lead in sales.