1. Sony's main focus is on home consoles (PlayStation series), and Nintendo has launched both home consoles (the new Nintendo Switch series) and portable game consoles (Nintendo DS series).
Sony's gaming business is primarily focused on its PlayStation series of home consoles. According to Sony's financial report, as of the end of March 2022, the cumulative sales of the PlayStation series reached 117 million units. Among them, the PlayStation 4 sold 116 million units, occupying the absolute leading position in the current generation console market. PlayStation has become one of the most successful home console brands in the world thanks to its powerful hardware performance and large number of exclusive games.
In contrast, Nintendo has taken a different approach on home and laptops. Its flagship product, the New Nintendo Switch, is a new generation of home consoles, and in the six years since its release in March 2017, it has sold more than 115 million units worldwide. Unlike other consoles that focus on the big screen experience, the Switch can switch between TV and portable modes at any time, a unique selling point that has made it a huge success.
At the same time, Nintendo continues to launch a variety of innovative portable consoles. Since its launch in 2004, the Nintendo DS series has gone through multiple generations of iterations, with cumulative sales of 154 million units, making it the world's best-selling portable gaming platform. The latest generation model, the Nintendo Switch Lite, is highly compatible with the Switch while maintaining the typical features of the entire series, further enriching the choices of gamers.
So, Sony and Nintendo have their own focuses. Sony is focusing on the home phone market, while Nintendo is taking a dual-platform strategy on home and laptops. But due to their strong game lineup and user base, both companies have enjoyed great success. Each has a large and loyal user base and maintains an unshakable position in the gaming industry.
2. Sony's consoles are usually positioned for stronger performance and technical experience, while Nintendo pays more attention to unique user experience and game IP for building consoles.
In terms of hardware specifications, the PlayStation series has always had a better performance advantage. For example, the PlayStation 4 used the top-of-the-line 8-core x86-64 AMD Jaguar CPU with 1.84 TFLOPS of AMD RadeonTM graphics processors, compared to the Nintendo Switch, which used a relatively old 4-core ARM chip with only 0.4 TFLOPS of graphics processing power. In terms of game resolution and picture quality, the PlayStation is indeed superior. This is in line with Sony's consistent focus on high-performance technology.
However, Nintendo's model has unique features in terms of gameplay and game software. Take the new Nintendo Switch, for example, with its remote controller equipped with features such as HD vibration, motion sensing, and an infrared camera, to support creative gaming experiences like Nintendo LABO. In addition, Nintendo has a large number of exclusive well-known game IPs, such as "Mario", "Zelda", "Pokemon", etc., which have super popularity, which is incomparable to Sony. This is in line with Nintendo's business philosophy of always attaching importance to driving characteristic software through hardware innovation.
Therefore, although it is inferior to its rivals in terms of performance and picture quality, the new Nintendo Switch has still achieved great success with its unique replacement features, innovative gameplay and exclusive game resources, and its lifetime sales are expected to surpass that of PlayStation 4, and some analysts believe that its solid game lineup is the main reason.
So, Sony and Nintendo have their own strengths. The former strives to be ahead of the curve in technology, while the latter is more unique in terms of gaming experience. This differentiated competition provides gamers with more options and drives the industry to flourish.
3. The growth rate of Sony's host production output is relatively fast, reflecting a further technological leap from each generation of console; Nintendo is relatively stable, and the new machine is mainly reflected in the interaction mode and game IP.
In terms of the speed of hardware technology iteration, the PlayStation series maintains a fast pace of upgrades. The latest PlayStation 5 was released in November 2020, which is about 7 years longer than the 2013 release of the previous generation PlayStation 4. This is in line with Sony's consistent technology leadership orientation. PS5 has taken a big step forward with significant improvements in processors, graphics, storage, and more, supporting higher game resolutions and finer picture quality effects.
In contrast, Nintendo's model iteration speed is more stable. Take the latest console, the new Nintendo Switch, for example, which uses the extremely economical Tegra X1 chip, which was even available as early as 2015, and has a 2-year technical history including 2017, when the Switch was released. This makes the Switch hardware specs significantly inferior to PlayStation and Xbox in the same period. However, Nintendo chose to maintain a stable iteration for a longer period, mainly upgrading the control and interaction methods, as well as rich game software content.
For example, the Switch OLED model, which was released in mid-2021, mainly adds a larger OLED screen, but the other hardware specifications are not improved. This allows it to keep its selling price low in line with Nintendo's product philosophy that values price accessibility. At the same time, a number of exclusive star games such as "New Pokemon" have been launched to promote the vitality of products with content.
Therefore, it can be seen that Sony pursues technological leadership and iteration speed, while Nintendo attaches more importance to product value and content upgrades. This difference provides gamers with more diverse options and drives the diverse development of the entire console market.
4. Sony's hardware division pays more attention to the sales of self-produced consoles, and Nintendo's revenue mainly comes from the sale of its own game software.
From the perspective of revenue structure, Sony's game business mainly relies on the sales of PlayStation series consoles independently developed and produced. In fiscal 2022, Sony's gaming and web services division generated hardware sales of 350.9 billion yen, accounting for nearly 50% of the division's total revenue. This is mainly due to the hot sales of the flagship console, PlayStation 5.
In contrast, more than 70% of Nintendo's revenue comes from digital content and services, including software sales from star games such as Mario, Zelda, and Animal Crossing, which are developed and published in-house, as well as subscriptions to online services and licensing tariffs. Sales of its console hardware, such as the New Nintendo Switch, accounted for less than 30% of revenue.
This is directly related to the business strategy of both companies. Sony is well aware of the value of content platforms, but it is relatively lacking in self-developed world-class game IP. As a result, it relies on its self-developed PlayStation console as a content platform to maximize profits. Nintendo, on the other hand, has many index IPs that can continue to drive high software sales through the long-tail effect, so console hardware is only the carrier of content display rather than the core.
In the end, both companies were hugely successful, albeit with different models. Sony's PlayStation is leading the current generation of console sales, and many of Nintendo's classic game characters continue to drive high revenues. This provides positive inspiration for the development of the industry, and content and user experience are at the core.
5. Sony's console platform has a mature online game and online service system; Nintendo's console connectivity and networking capabilities are still evolving.
PlayStation has supported online games, digital downloads, and the PlayStation Network online service system since the PS3 3rd generation. PSN allows users to connect with friends online, download indie games or DLC downloads, subscribe to PlayStation Plus memberships, and more. This online system has been continuously improved by multiple generations of consoles, providing players with a strong social connection and rich download content. At present, the total number of PSN users has exceeded 100 million.
In contrast, Nintendo's online service network construction started late. It was not until 2017 that the Nintendo Switch console was officially connected to the network and established the Nintendo Account system when it was launched. The number of games available online and digital downloads is also significantly lower than on PlayStation 4. However, in recent years, Nintendo has also accelerated the pace of construction. The Switch Online service, launched in 2019, has made great strides, providing online trials of classic games such as Super Nintendo, and is also actively enriching the online game category of Switch consoles.
Therefore, Sony's PlayStation has established a very mature online game and online service system through years of accumulation, which is an important part of the core competitiveness of its products. Nintendo, on the other hand, is in the accelerated stage of network construction and is increasing investment in cooperation with third parties to enrich network content. This disparity provides options for players and is driving networking across the industry.
6. Nintendo's game IP is richer and more charming, with many classic series such as Super Mario and Zelda.
Nintendo has long established an extremely deep accumulation in independent game software development, and has a number of billion-level game IPs that have existed since the era of red and white consoles. This is Nintendo's unique core competency.
Its flagship IP "Super Mario" series has sold more than 630 million copies so far, making it the world's best-selling single game series. Mario the Cardinal has become almost synonymous with the game and is a memory for many players growing up. "The Legend of Zelda", as another iconic IP of Nintendo, has attracted new players in all generations through continuous innovation, with cumulative sales of more than 128 million copies. These two IPs are recognized as Nintendo's most valuable assets.
In addition, "Pokemon", "Animal Crossing", "Pikmin" and so on all have extremely high popularity and influence. Nintendo's large number of successful star-level IPs provide it with a strong backing. Not only do these games attract new purchases, but they also generate significant revenue through ongoing sales and porting. IP operations have become an important part of Nintendo's business.
In contrast, there is still a big gap between the visibility and influence of Sony's first-party studios. Series such as "Tomb Raider" and "Uncharted" have been successful, but not enough to compete with Nintendo IPs. This is a shortcoming that Sony urgently needs to improve.
Therefore, it can be seen that in terms of game IP accumulation, Nintendo has an obvious first-mover advantage and rich resources, which is the source of the core competitiveness of its products. This difference has also driven the development of the market, enabling flagship IP to drive higher sales and attention.
7. Sony's main game genre is mainly action games, while Nintendo's game genre is more casual.
From the perspective of the main game genre preferences, Sony's PlayStation platform has a higher proportion of action games; On the Nintendo platform, casual games are more prominent.
Among the console exclusive games developed by Sony's first-party studios, most of them are high-quality action-adventure games. Such as "Uncharted", "Red Dead Redemption", "God of War" and other key AAA masterpieces. This type of game pursues a cinematic narrative style and excellent graphics, emphasizing a sense of immersion and substitution. At the same time, action games and shooter games are also relatively high in the games ported and exclusive to the PlayStation platform by third-party manufacturers.
In contrast, the more prominent genre of games on the Nintendo platform is casual. For example, "Animal Crossing" and "Mario Maker Master" do not have a clear goal, and the gameplay is easy to play games occupy a large proportion. This type of game focuses on creativity and fun, has no complicated mechanics, and is suitable for all ages, which is related to Nintendo's consistent positioning as "family entertainment".
Of course, there are other types of boutiques on both platforms. There's no shortage of great racing and sports games on PlayStation. Nintendo also has action-adventure games like Zelda, Pokémon. However, regardless of the overall layout of first-party and third-party games, the difference in preferences between the two is relatively obvious. This stems from their different definitions of the game's philosophy and audience.
This differentiation provides players with richer choices, and also makes the entire game market present a more diversified ecological pattern. The different playstyles of both platforms have a large following of loyal fans. They complement each other and jointly promote the development of this cultural industry.
8. Nintendo has launched many peripheral innovations, such as nunchucks and Wii motion sensing. Sony console peripherals have undergone fewer changes.
In terms of console control methods and peripheral innovations, Nintendo's game consoles have always been more prominent, and they have frequently introduced new ones. This is a difference compared to Sony's PlayStation series.
Nintendo's epitome is the Wii and Switch, which combine innovative interactions with novel sensor controls and swappable ones, respectively. Wii has opened up a new blue ocean market with product innovation by enabling the whole family to participate in motion gaming with the Wii Remote, a motion control. The Switch adopts a new form of interactive Joy-Con controller, which supports a variety of gameplay, which is a strange thing in today's game consoles.
This type of peripheral and control innovation became a major feature of the Nintendo platform. Historically, Nintendo's nunchucks, pointing devices, and somatosensory balance boards have revolutionized the way games are played. In recent years, the LABO series of paper sets are even more imaginative. These hardware creations open up more possibilities for featured game content.
In contrast, the standard controller of Sony's PlayStation console hasn't been much renovated since the dual shock, and basically follows the controller-like design. There is also less investment in the development of host peripherals. Sony is more focused on improving the internal technical specifications of the console than on the way it is controlled.
Therefore, from this point of view, Nintendo's open-mindedness and innovative spirit are more prominent, providing a model for the progress of the industry. Sony, on the other hand, has adopted a more pragmatic strategy of technological iteration. This difference has led to the diversification of the industry.
9. Nintendo relies on hardware exclusivity to make profits, and Sony consoles are universally compatible with games.
From the perspective of game compatibility strategy, Sony's PlayStation series adopts a more open and compatible model, while Nintendo's models are more closed and exclusive.
For example, during the transition period between the old and new consoles, in order to take care of the transition of the user base, Sony implemented a large number of compatibility support from PlayStation 4 to PlayStation 5. More than the vast majority of PS4 games can be played directly on PS5. This lowers the barrier to entry for users to upgrade their hosts. However, Nintendo's Switch is not directly compatible with games on the Nintendo 3DS or Wii U platforms, and users need to re-purchase the adapted version, which brings repeated consumption to a certain extent.
At the same time, for third-party developers, PlayStation also provides a more open free distribution policy and development tool support, and the development cost is also lower. This makes it more supported by indie game studios. The approval and distribution rules of the Nintendo platform are more strictly closed.
This is directly related to the business strategies of both companies. Sony attracts more game platforms to enrich its ecosystem through open support, and profits from it. Nintendo, on the other hand, leverages the tight binding of hardware and software to achieve higher profit margins. This creates a difference in their compatibility and openness.
This differentiation brings more diversity to the market. Both modes have their pros and cons to better meet the needs of different players. Together, they drive diverse advancements in the industry.
10. There are also differences in game content moderation policies between the two companies. Sony is more lax, Nintendo is more stringent.
There are also differences between Sony's PlayStation and Nintendo's enforcement of game content moderation policies. Overall, PlayStation is more open and relaxed about game content restrictions, while Nintendo's moderation scale is more traditional and conservative.
On the PlayStation platform, players have access to more open game content. Some games that involve sexual and violent elements, such as the various 18-banned games and the direct depiction of brutal plots in The Last of Us series, are released exclusively on PlayStation. This is in line with Sony's product positioning more adult style.
On Nintendo's console and mobile game platforms, due to its brand image of "entertainment for all ages", works that need to pass its game content review must not contain bloody, pornographic and other elements, and the overall review regulations are relatively strict and traditional. As a result, some adult-oriented content games will not be available on Nintendo platforms.
Of course, each platform is appropriately relaxing its policies in this regard. Nintendo's Switch began to accommodate more adult games. Sony's audits are also slowly becoming stricter. But the difference in style between the two is still obvious. This also provides users with options to meet the needs of players with different tastes.
Therefore, in terms of game content restrictions, Sony PlayStation is more open and compatible with diverse game content; Nintendo is more conservative and traditional, maintaining its image of home entertainment. It's a direct reflection of their brand personality. The two models can complement each other and inject a more inclusive and open atmosphere into the industry.