Combination of a few things.
1. Sega and Nintendo dropped the ball: Nintendo refused to support CDs, which ran away third party companies. Then Sega fucked up, but they had the marketing legacy of "Sega does what Nintendont!" Basically, Sega started the whole Nintendo being kiddy thing, and Sony just picked up where they left off. It wasn't really Sony beating them, more like Sega committing suicide and Nintendo pull an Xbox One, shooting themselves in the foot.
2. No competition for PS1: This set up the strong fanbase going into the PS2. Microsoft eventually entered for the PS2, which translated into the Xbox 360.
3. PS3 spending: They dropped the ball hard with the PS3. When they announced that $599 shit, the Internet had a field day with memes. You even had people advocating for a 'Wii60'. They realized that they dropped the ball and lowered prices while cooking up new exclusives.
4. Formulaic: At this point, they just have to follow the formula. Heavy third party support, reasonably priced powerful machine, and quality exclusives that appeal to their fanbase.
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