Nintendo's Role in Sony's Fall

11.) Sony introduces the PS3, sporting far more powerful hardware than either alternative system, limited online system support, and a fairly solid launch line-up. Nintendo introduces the Revolution. At the same time that the Revolution and PS3 hit the store shelves, Microsoft reduces the price of the Xbox 360 and releases Halo 3. Halo 3, combined with the price reduction, effectively undercuts the momentum of the PS3 launch. Customers have to decide between the 360 with Halo 3, the PS3 with a potentially high price tag, and the Revolution, priced near current generation game consoles. 12.) Nintendo succeeds in co-existing with the Xbox 360 and the PS3, effectively separating themselves from Microsoft and Sony and scoring will with the casual gamer. Continued innovation on Nintendo DS titles produce a game system that does not become out-of-date as quickly as the PSP, whose features face competition from a growing number of products from companies outside the video game industry; items such as cell phones begin playing movies and music. Sony pulls out of its slump and begins producing good games for the PSP. The PSP stays competitive, but ultimately takes second place to Nintendo.