Can Anybody Compete with Microsoft, Nintendo, and Sony in the Home Console Market?

Nintendo, Microsoft, and Sony currently dominate the home video game console market with the Wii, Xbox 360, and PlayStation 3, respectively. Undoubtedly, the "big 3" are already hard at work coming up the follow-ups to these consoles. The last company to be a major player in home consoles prior to these three companies was Sega, which produced the company's final console, the Dreamcast, until it pulled out of the console business in 2001. Will any other companies ever enter the home console arena again, or will the big 3 rule unchallenged into the next decade? Here are a few possible competitors and their chances at making the big time in the home video game console market.

Apple. Apple has legions of followers who will purchase virtually anything the company produces, so what about the possibility of turning the Apple TV device into a gaming system? This may happen, but if it does, don't expect anything on a scale comparable to the current generation game consoles. Instead, expect a machine that plays simpler fare, such as what might be found in the WiiWare channel. Apple iPhone users and iPad users seem to love these sorts of games, so a game-enabled Apple TV does seem like a reasonable possibility. My guess is that the next generation Apple TV will have at least limited gaming capabilities, but will not be a true competitor to the current home game consoles.

Sega. Rumors always seem to be circulating about Sega returning to the console market at some point during the next few years. A lot has been made of Sega's announcement that they are working with Imagination Technologies in the United Kingdom to produce a "very high-tech image of the next generation console"(2). Only time will tell if this means Sega is actually working on their own console or simply advising another company about them. With the dismal sales of the Dreamcast, I would be surprised if Sega tried to return to the console market, especially as the company seems to be doing just fine producing software.

Zeebo. Unknown in the U.S., Zeebo is already sold in Brazil and Mexico(3). It is a console without any physical media like discs or cartridges that instead downloads games wirelessly. This is done in an effort to avoid piracy that can occur, as physical media can always be copied by those with the right equipment. The system is a good idea and is looking to find more markets to expand to, but if it wants to get into the American market, it needs to hurry. The prices on consoles in the U.S. are already pretty reasonable, and a budget-themed system like the Zeebo would have to come in around $100 or less to have a shot. I don't think the current generation Zeebo will make it to the America in time to have much of an impact on the big 3, but a media-free console is a great idea and perhaps a second generation Zeebo could enjoy success when and if it is made.

In short, the big 3 don't have anything serious to worry about just yet. There are no clear enemies on the horizon, and the only competition they have to worry about at the moment is each other.

Sources:
http://en.wikipedia.org/wiki/Sega_dreamcasthttp://gamerant.com/rumor-sega-making-console-ryanb-25984/http://en.wikipedia.org/wiki/Zeebo