The generation opened early for handheld consoles, as Nintendo introduced their Nintendo DS and Sony premiered the PlayStation Portable (PSP) within a month of each other in 2004. While the PSP boasted superior graphics and power, following a trend established since the mid 1980s, Nintendo gambled on a lower-power design but featuring a novel control interface. The DS's two screens, one of which was touch-sensitive, proved extremely popular with consumers, especially young children and middle-aged gamers, who were drawn to the device by Nintendo's Nintendogs and Brain Age series, respectively. While the PSP attracted a significant portion of veteran gamers, the DS allowed Nintendo to continue its dominance in handheld gaming. Nintendo updated their line with the Nintendo DS Lite in 2006, the Nintendo DSi in 2008 (Japan) and 2009 (Americas and Europe), and the Nintendo DSi XL while Sony updated the PSP in 2007 and again with the smaller PSP Go in 2009. Nokia withdrew their N-Gage platform in 2005 but reintroduced the brand as a game-oriented service for high-end smartphones on April 3, 2008.[39]Apple Inc. entered the realm of mobile gaming hardware with the initial release of the iPhone and iPod Touch in the summer of 2007. The greatest shift brought by Apple's entry was to abandon the traditional reliance on "brick and mortar" retail sales for software purchases; instead, the iPhone platform relies entirely on digitally-distributed content.
In console gaming, Microsoft stepped forward first in November 2005 with the Xbox 360, and Sony followed in 2006 with the PlayStation 3, released in Europe in March 2007. Setting the technology standard for the generation, both featured high-definition graphics, large hard disk-based secondary storage, integrated networking, and a companion on-line gameplay and sales platform, with Xbox Live and the PlayStation Network, respectively. Both were formidable systems that were the first to challenge personal computers in power (at launch) while offering a relatively modest price compared to them. While both were more expensive than most past consoles, the Xbox 360 enjoyed a substantial price edge, selling for either $300 or $400 depending on model, while the PS3 launched with models priced at 500USD and 600USD. The PlayStation 3 was the most expensive game console on the market since Panasonic's version of the 3DO, which retailed for little under 700USD.[40]
Nintendo was not expected to compete credibly at all, with most industry analysts predicting a distant third place finish for its new Revolution console, later renamed Wii, introduced a couple days after the PS3, and one even going so far as to predict a market exit similar to Sega.[citation needed] Instead, Nintendo pulled off an industry turnaround in business. Wii had lower technical specifications than both the Xbox 360 and PlayStation 3.[41] Nintendo refused to publish or confirm technical specifications, instead touting the console's new control scheme, featuring motion-based control and infrared-based pointing. Many gamers, publishers, and analysts dismissed the Wii as an underpowered curiosity, but were surprised as the console sold out through the 2006 Christmas season, and remained so through the next 18 months, becoming the fastest selling game console in most of the world's gaming markets.[42]
In June 2009, Sony announced that it would release its PSP Go for 249.99USD on October 1 in Europe and North America, and Japan on November 1. The PSP Go was a newer, slimmer version of the PSP, which had the control pad slide from the base, where its screen covers most of the front side.
