Seventh generation of video game consoles
The seventh generation of home video game consoles began on November 22, 2005, with the release of Microsoft's Xbox 360 home console. This was followed by the release of Sony's PlayStation 3 on November 17, 2006, and Nintendo's Wii on November 19, 2006. Each new console introduced new technologies. The Xbox 360 offered games rendered natively at high-definition video resolutions, the PlayStation 3 offered HD movie playback via a built-in 3D Blu-ray Disc player, and the Wii focused on integrating controllers with movement sensors as well as joysticks. Some Wii controllers could be moved about to control in-game actions, which enabled players to simulate real-world actions through movement during gameplay. By this generation, video game consoles had become an important part of the global IT infrastructure; it is estimated that video game consoles represented 25% of the world's general-purpose computational power in 2007.
Joining Nintendo in releasing motion devices and software, Sony Computer Entertainment released the PlayStation Move in September 2010, which featured motion-sensing gaming similar to that of the Wii. In November 2010, Microsoft released Kinect for use with the Xbox 360. Kinect did not use controllers, instead using cameras to capture the player's body motion and using that to direct gameplay, effectively making the players act as the "controllers". Having sold eight million units in its first 60 days on the market, Kinect claimed the Guinness World Record of being the "fastest selling consumer electronics device".
Among handheld consoles, the seventh generation began somewhat earlier than the home consoles. November 2004 saw the introduction of the Nintendo DS, and the PlayStation Portable came out in December. The DS features a touch screen and built-in microphone, and supports wireless standards. The PSP became the first handheld video game console to use an optical disc format as its primary storage media. Sony also gave the PSP multimedia capability; connectivity with the PlayStation 3, PlayStation 2, other PSPs; as well as Internet connectivity. Despite high sales numbers for both consoles, PSP sales consistently lagged behind those of the DS.
A crowdfunded console, the Ouya, received $8.5 million in preorders before launching in 2013. Post-launch sales were poor, and the device was a commercial failure. Additionally, microconsoles like the Nvidia Shield TV, Amazon Fire TV, Mojo, Razer Switchblade, GamePop, GameStick, and more powerful PC-based Steam Machine consoles have attempted to compete in the video game console market; however they are seldom classified as "seventh-generation" consoles.
The seventh generation slowly began to wind down when Nintendo began cutting back on Wii production in the early 2010s. In 2014, Sony announced they were discontinuing the production of the PSP worldwide, and the release of new games for the DS eventually ceased later that year with the last third-party titles. Microsoft announced in that same year that they would discontinue the Xbox 360. The following year, Sony announced that it would soon discontinue the PlayStation 3. Around that time, the remaining Wii consoles were discontinued, ending the generation as all hardware was discontinued. The final Xbox 360 physical games were released in 2018, as FIFA 19 and Just Dance 2019. Despite this, several more Wii games were released, including a few more annual Just Dance sequels, as well as a limited 3,000-copy print run of a physical release of Retro City Rampage DX. The eighth generation had already begun in early 2011, with the release of the Nintendo 3DS.
Home video game consoles
Xbox 360
The Xbox 360 gained an early lead in terms of market share, largely due to its established Xbox Live online gaming system, and its early launch date, which was one year before its rivals. Sales in North America and Europe continued to be strong, even after the release of the Wii and PlayStation 3. Like its predecessor, the Xbox 360 received a muted reception in Japan, attributed to the lack of content aimed at Japanese gamers, which was a key reason why its predecessor underperformed in that country. Despite its early launch date, the Xbox 360 finished in 3rd place behind its competitors.This early launch did come with some trouble, as technical problems appeared in a portion of Xbox 360 units sold. The most well-known problem is the "red ring of death" and Error E74, which received a great deal of attention due to some users having to replace their consoles multiple times. Microsoft attempted to address this by offering a three-year warranty on all affected consoles and repairing them free of charge. It also retroactively reimbursed owners of affected systems who paid for repairs, and ultimately made several adjustments to the console's design to improve reliability, consulting with "an established ASIC vendor".
As they share many cross-platform games and competed for the same audience as their predecessors, frequent comparisons are made between the Xbox 360 and PlayStation 3. The PS3 uses the Blu-ray format, while the Xbox 360 uses a standard DVD9. The Xbox 360 was less expensive to produce and broke even on manufacturing costs earlier than the PS3, while industry consensus was that the Xbox 360's conventional architecture is easier to develop for.
At the end of the first half of 2007, the console stabilized at 11.6 million units shipped as sales dropped 60% while its rival, Wii, gained momentum and Sony announced a competitive price drop on the PlayStation 3. Microsoft's strategy to boost sales with the release of the highly anticipated Halo 3 in September 2007 paid off, outselling the Wii that month in North America. Microsoft's Entertainment and Devices Division experienced a huge increase in revenue, largely driven by the release of Halo 3, and posted a quarterly profit for the first time in two years.
The Xbox 360 focused on the release of high-profile games, such as additions to the Halo franchise. The 2007 Game Critics Awards honored the platform with 38 nominations and 12 wins – more than any other platform. At the 2008 Game Developers Conference, Microsoft announced that it expected over 1,000 games available for Xbox 360 by the end of the year. The Xbox 360 has managed to gain a simultaneous release of titles that were initially planned to be PS3 exclusives, including Devil May Cry, Ace Combat, Virtua Fighter, Grand Theft Auto IV, Final Fantasy XIII, Tekken 6, Metal Gear Rising: Revengeance, and L.A. Noire.
In November 2010, Microsoft released Kinect. Kinect did not use controllers, instead making the players act as the "controllers". Having sold eight million units in its first 60 days on the market, Kinect claimed the Guinness World Record of being the "fastest selling consumer electronics device". At E3 2010, Microsoft revealed a new Xbox 360 SKU known officially as the Xbox 360 S and referred to as the "Slim" by various media outlets. At E3 2013 Microsoft revealed the Xbox 360 E, the final iteration of the Xbox 360 series, to be succeeded by Xbox One. The 360 E featured a new square design with a simplified exterior akin to the Xbox One.
PlayStation 3
Sony's PlayStation 3 was released on November 11, 2006, in Japan and November 17, 2006, in the United States and Canada. The system's reliance on new technologies such as the Cell microprocessor and Blu-ray format caused difficulties in manufacturing, especially the Blu-ray diode, leading to shortages at launch and the delay of the PAL region launches; however, by early December 2006, Sony announced that all production issues had been resolved. Market analysts and Sony executives noted that the success of the PlayStation 3 and the Blu-ray format were dependent on each other; Rich Marty, VP of New Business Development at Sony Pictures Home Entertainment stated that the "PS3 is critical to the success of Blu-ray", while Phil Harrison stated that the PlayStation 3's success would be ensured by "the growth of the Blu-ray Disc movie market".Sony would provide support for its console with new titles from first-party franchises such as Gran Turismo, Ratchet & Clank, and God of War, while establishing series such as LittleBigPlanet and Uncharted. Sony also secured a number of highly anticipated third-party exclusive titles, including Metal Gear Solid 4: Guns of the Patriots, Yakuza 3 and Valkyria Chronicles. Titles that were originally exclusive or recognized with the platform, such as Devil May Cry, Ace Combat, Virtua Fighter, and Monster Hunter, have been released on other platforms. The previous Grand Theft Auto titles were originally timed exclusives on the PlayStation 2, before making their release on other platforms, such as the Xbox, months later; however, Grand Theft Auto IV, the latest installment, was released simultaneously on the Xbox 360 and PlayStation 3. Titles initially announced as PlayStation 3 exclusives, such as Assassin's Creed; Bladestorm: The Hundred Years' War, and Fatal Inertia, were ultimately released on Xbox 360 as well, with the latter making its appearance on Xbox 360 before the PlayStation 3 version. Sony blamed lower-than-expected sales of the PS3 on the loss of exclusive titles in its software library, its higher price, and stock shortages.
The high launch price of the PlayStation 3 was considered a major drag on its popularity. In July 2007, Sony announced a drop in the price of the already-discontinued 60 GB models of the console by $100 in the United States and Canada. On October 18, 2007, Sony announced a US$100 price drop for the 80 GB model and a new US$399 40 GB model to launch on November 2, 2007, with reduced features such as the removal of backward compatibility with PS2 games. Within weeks, Sony announced that sales of the 40 GB and 80 GB models by major retailers had increased 192%. In November 2008, Sony launched a 160 GB model, and on August 18, 2009, Sony announced the PS3 Slim. The PS3 slim sold 1 million in under a month. It was then announced that a 250 GB slim model was to be released. It was released on September 1.
In September 2012, Sony announced a new slimmer PS3 redesign, commonly referred to as the "Super Slim" PS3. It was released in late 2012, available with either a 250 GB or 500 GB hard drive. The "Super Slim" model was the last model to be produced by Sony before the system was slowly discontinued around the world. Shipments of new units to the United States were terminated in October 2016 and Sony officially discontinued the system in Japan on May 29, 2017, the last territory where it was selling new units up until then.