If you look at the entire picture, you notice the gaming industry being a factor only in a short time period, since the 70's. It took them around a decade until they made a name for themselves, and people started to know who companies like Nintendo were.

The times of the games where you ate mushrooms and stomped turtles are long gone now. They were great times for the game industry, as it exploded and became popular. It fast became a billion dollar industry, and Nintendo started to launch a lot of games each month. It might've been a fringe industry at some point, but it's no longer that. At least not since Microsoft and Sony started making games as well.

Right now, the gaming industry is a huge behemoth, which tries to improve itself with each new game it releases. They keep trying to improve their games and their marketing techniques, so they sell more. They launch new consoles which are more powerful, they use better soundtracks and bigger game worlds, with incredible new graphics.

As Microsoft and Sony keep improving their games, Nintendo tries to change the technology behind their games. They decided that rather than boost their cars, they would rather build a new vehicle, which would revolutionize the industry.

Microsoft and Sony target the older player demographics with their games and consoles, but the game industry was built on the base of the young people. Nintendo instead tries to bring new technologies to the table and win over the young generations, which are the future.

Nintendo now tries to get a console on the market that will make parents think that it's cool and buy it for their kids. The success of the Nintendo Wii console is due to the fact that it's a cool technology and because parents want to see their kids exercise. The fact that the Wii makes exercising fun can only help with the sales. Even older players like this console, especially if they want to change their sedentary lifestyle, or if they want to lose some weight.

This is why Nintendo has the advantage when it comes to the race between them and their two other competitors, Microsoft and Sony. They will probably come up with their own innovations in time, but for now, Nintendo has the advantage when it comes to the console technology. Some companies like Sony rely mostly on their reputation, but the ones that win the race in the long run are the ones that innovate.

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