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The Mercury News discusses the next-gen graphics race between Sony and Microsoft and why Nintendo has apparently pulled their Wii out of the race…

With its upcoming video game machine on display this week, Nintendo has decided to drop out of the game technology arms race. A few years ago, the Japanese company made a gargantuan gamble that gamers would appreciate creativity more than eye-popping graphics…

Did Nintendo have to sacrifice graphics for gameplay innovation? Can the console overcome it’s technical inferiority? Will the Wii’s lower development costs and lower selling price result in cheaper games and more console sales? What portion of gamers will own two consoles during this generation? It’ll be some time before we know the answers to these questions.

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The New York Times has an excellent article up previewing this week’s Electronic Entertainment Expo, the upcoming Wii and PlayStation 3 consoles, and the future of the gaming industry. The authors seem very high on the direction Nintendo is taking…

Nintendo’s apparent lead in development reflects a fundamental difference in how the company is approaching this next generation of systems. While Microsoft and Sony have been pushing to give their systems as much sheer graphics and computing power as possible, Nintendo has focused more on developing innovative games. So while Wii games may be a bit less graphically dazzling than those for the Xbox 360 and PlayStation 3, they will be more individually distinctive.

The next eighteen months will be critical to the entire video game industry. Can Nintendo and Sony’s new hardware meet expectations and can they produce enough units to meet demand? And can all three next-gen systems release games that will create excitement with the average consumer? We’ll find out a little more this week.

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