six generation
This era is currently drawing to a close; it appears to be a sales victory for the PlayStation 2, with the Xbox, made by Microsoft, coming in second, and with the Nintendo GameCube coming in a close third. Also included in this era was the Sega Dreamcast, which arrived prior to all of the others (1999). However, the impending and much-hyped PlayStation 2 competed with the Dreamcast before it was even released; this, combined with the shadow of the Saturn's downfall and the vast piracy problems it suffered all led to the Dreamcast's early demise. The brand Sony had established with the original PlayStation was a major factor in its victory, both in terms of securing a consumer base and attracting third party developers; the gradual increase in one tending to reinforce the other. The PlayStation 2 was also able to play DVDs and was backwards-compatible with PlayStation games, which many say helped the former's sales. Any user considering buying a DVD player or PlayStation could view the PlayStation 2 as a sensible alternative, and the system effectively had a back catalogue available before it even went on sale.
The Xbox, despite the formidable financial backing of Microsoft and despite being more powerful than the PlayStation 2 due to its later release date, has failed to significantly threaten the PlayStation 2 place as market leader. However, it has attracted a large fanbase in the United States and Europe and has become a recognisable brand amongst the mainstream. In Japan its sales are far poorer, possibly due to the physical size of the console, and Microsoft's inability to acquire many major Japanese developers for their franchises as exclusives for the platform (contrast with Microsoft's multi-million dollar acquisition of UK developer Rare). However, there is a niche fanbase, particularly as the online services for the console, "Xbox Live", offers more to users than Playstation 2's non-centralized online system and Nintendo GameCube's near total lack of online games.
Nintendo is still struggling with its own conflicting brand images, particularly the family-friendly one developed during the 1990s. Nintendo's arsenal of franchises and history in the industry, though earning it a notoriously loyal fan base, have failed to give it an advantage against the Xbox and PlayStation 2. The Nintendo GameCube sits comfortably in second place in Japan, and in a close third place in the United States and Europe. Overall, it has pulled in slightly behind the Xbox. Nintendo develops far more first party games than either of the other companies, and many more second party ones so its profits were increased based on this.