in late 94 after a completely wild development Journey Sony releases the PlayStation in Japan followed by launches in the United States and Europe a year later despite a rocky start the console gains traction benefiting from an extensive promotional campaign the piracy rampant and more importantly sega's numerous missteps with the Saturn and the lack of games on the Nintendo 64 gradually the PlayStation establishes itself eventually dominating the market and overshadowing the competition thanks to omnipresent third-party Publishers and a continuous stream of game releases however after this resounding success Sony faces an even more challenging task than Conquering the video game market doing it a second time in the most competitive context in history Sega gains ground with the Dreamcast Nintendo continues its streak of legendary games that revolutionized the industry on its previous console and a new player enters the scene Microsoft with its highly anticipated and promising new console this marks the epic journey of the wildest console in history the one that completely redefined the standards of a gaming console this is the story of the PlayStation [Music] 2 [Music] at the end of 1994 Sony releases the PlayStation in Japan and the initial sales are not that great it lags behind Sega Saturn sparking a fierce competition almost immediately Ken karagi the man who oversaw the project from the CD player for the Super NES to a new console starts considering the next console however he quickly encounters resistance from Sony's leadership which sees things differently if the PlayStation doesn't become a commercial success there might not be a next console remember a significant portion of Sony's Executives vehemently opposed the making of the first PlayStation and didn't want the company to focus on video games to make matters worse karagi a controversial figure is driving the project forward some of his colleagues describe him as manipulative insolent stubborn provocative and disrespectful of hierarchy this behavior is deemed unacceptable even more in Japan and a substantial number of them wish for only one thing the failure of the PlayStation it lands in the United States and Europe a year later in September 1995 and the beginnings are more convincing it catches up with and gradually surpasses Sega Saturn in 1996 the Nintendo 64 arrives like a rocket quickly reaching the PlayStation's level thanks to Super Mario 64 that shatters all sales records but PlayStation sales remain strong and there you have it the project for a Next Generation console is truly launched karagi had been working on it on his own anyway whether authorized or not in 1997 after the Nintendo 64 had the upper hand for a few months PlayStation sales literally explode this is fueled by a price drop from $299 to just $199 taking advantage of a quiet year for Nintendo's console with many game delays and the eagerly awaited 64dd PlayStation also benefits from prevalent piracy on the console which skyrocketed the console on some territory mainly Europe the introduction of a joystick equipped controller and major releases from thirdparty Publishers Final Fantasy 7 Tomb Raider Oddworld Crash Bandicoot Final Fantasy Tactics Resident Evil Tekken Twisted Metal 2 and the start of Grand Turismo promotion the place station outshines its competitors validating kari's vision and choices to create a straightforward console with easy game development an affordable price point and a significant focus on marketing while collaborating with thirdparty Publishers instead of trying to sell in-house developed games in the middle of 1997 following the convincing sales of the PlayStation Ken karagi is promoted and directly catapulted into the position of CEO of Sony Computer Entertainment the Department responsible for video games this marks the beginning of the karagi show earning him the nickname crazy Ken this isn't the first time he's caused a stir during the development of the PlayStation 2 his former colleagues recall his behavior he asked the engineers for a cuttingedge cost-effective architecture and every morning he yelled at them whenever they explained that something was not feasible he would respond impossible is not an option I want it done in every meeting he would forcefully assert his ideas and and whenever someone contradicted him he would bark for an hour over a minor disagreement to the point that no one dared to contradict him anymore he used his hierarchal superiors to translate his ideas into English in meetings which is highly frowned upon in Japan and can be interpreted as humiliation sometimes specific points had to be addressed in meetings but karagi explained that he already made his decision and use the meeting to talk about something else he made very important decisions on his own which greatly annoyed a portion of Sony's Executives one day I made an appointment with him and his team to discuss the piracy issue and he denied everything so he demonstrated how people were pirating the console right in front of him and he continued to say there is no piracy problem with the PlayStation his behavior is questionable and some employees even refuse to answer questions about him stating if some things were known today it would cause a huge Scandal but despite that what stands out significantly from these former employees is how Visionary he was an enormous worker the first to arrive and the last to leave he had an office on each of the 12 floors of Sony's headquarters in order to let employees on every floor approach him if needed and leave notes on his desk he played The Negotiator with all kinds of companies never giving up an inch to let Engineers solely focus on the console's architecture even though it wasn't his original job in reality he is admired as much as he is feared and will impose his own vision of a gaming console much more than with the PlayStation 1 where he had to make concessions his vision revolves around a Home console that is not just for playing in one's room but rather turning it into an entertainment device for the entire living room the end of 1997 beginning of 1998 marks the acceleration of a new medium the DVD Sony has just finalized its own new DVD format created in partnership with Phillips the dvdrw capable of storing 4.7 GB it's enormous and Ken karagi sees exceptional potential he wants the next console to use the DVD medium for games but more importantly he insists that it must be able to play video DVDs however Sony's Executives disagree making the PlayStation 1 compatible with playing audio CDs led to a significant decline in the company's CD player sales with massive projections for the DVD Market turning the PS two into a DVD player would be an extremely risky gamble for Sony karagi fights tooth and nail for months he believes that the PS2 must be able to play DVDs for the success of the next console even though a good portion of the top Executives rejects The Proposal Sony CEO noro AA who likes karagi personally approves the decision the PlayStation 2 will also serve as a DVD player marking a first victory for karagi as he sees the project gradually Tak taking shape the heart of the console is very challenging to design Because by the late '90s technological advancements in the gaming world are staggering every 6 months significant technical revolutions hit the scene leading to a real war between graphics cards and processors involving video logic with its pcx2 and the exceptional 3D Hardware acceleration of 3D fx's Voodoo graphics cards the battle intensifies month after month making it a very difficult ch challenge to design a console in a period where the world of computing is evolving so rapidly remember that Sega developed two consoles in parallel with different architectures using different components leading to the Dreamcast for the same reasons Sony decides to partner with a Japanese giant Toshiba and invest $2 billion in semiconductor companies to design a processor called the emotion engine its theoretical power is simply monstrous and it is named so because it's supposedly has the mathematical power needed to simulate emotions because according to Sony this means they can create 3D models and faces with clearly visible emotions moreover it is supposed to manage artificial intelligence so effectively that it eventually gives the impression of having genuine feelings the question of the console's name arises and as karagi wants it to be in line with the previous one the name PlayStation 2 is chosen despite some reservations from some team members and other proposals however Sony has a lot of difficulty designing the appearance of the console the look of the original PlayStation is highly appreciated and a big selling point of the console making it challenging to follow up te goo the man who designed the PlayStation in very close collaboration with karagi and who also designed the first controller and the famous symbols that have become popular takes on the task of Designing the Playstation 2 for this new console kari's only instructions are create a design that appeals to every everyone which is too vague to provide any specific guidance goto struggles immensely to Envision what a successor to the console would look like and the initial designs are rejected by Sony's higher ups because they resemble the already announced and showcased Dreamcast by Sega the PlayStation 2 needs to stand out goto is somewhat at a loss for inspiration unable to produce a convincing prototype strangely he finds the inspiration in a prototype of atari's latest PC the Falcon 30 micro box which never made it to Market Sony seemed to have acquired the patent during atari's bankruptcy goto essentially picks up its design creating something similar and it's even explicitly mentioned in the console's patent the only thing left to change is the color he opts for black representing the universe with a blue logo symbolizing the Earth in the midst of this universe karagi announces the console as the entry into a new universe one of the most annoying issues for players with the play PlayStation 1 is the fragile game cases that easily break upon opening consequently Sony decides to create new ones for the PlayStation to to achieve this Sony America hires an artist hawo who has collaborated with various Publishers on significant games his task is to design special game cases with peculiar shapes pyramids trapezoids that introduce movement an artist creating something completely unique that significantly helps the games using his cases stand out hawwai yo designed several case models including this highly exotic one that truly convinces Sony America however during the Prototype stage Sony Japan decides to cancel the project and opt for conventional and cheaper DVD cases instead as for the controller the question doesn't really arise because Sony which was lagging behind the competition especially Nintendo which introduced an analog stick and vibrations among other features in its controller described by journalists as as a gem has just released the Dual analog controller and more importantly the dual shock even though some players and journalists especially in Japan and America initially complained because the sticks are quite low on the controller and the grip is less natural than with directional buttons goo and karagi decide to stick with the same model to maintain continuity with the previous console they believe that over time everyone will get used to it consequently the dual shock 2 for the PlayStation 2 it's very similar model to the first one slightly improved with sticks that offer better grip and are slightly more precise than before it is lighter and will be available in Black matching the console and one day during a trip to South Korea karagi meets several Publishers and developers who explained to him that in South Korea players prefer computers cyber cafes or arcades for those who don't have them they play online MMO RPGs something surprising and not very widespread globally in the video game industry at the time time South Korean players pay a monthly subscription in order to connect and access content to download via the Internet seeing this karagi gets the idea to do the same for Sony instead of adding content to a video game Sony could provide a service for music images and videos featuring popular songs from Sony music or movies produced by Sony Pictures users would pay a monthly fee turning the PlayStation 2 into more than just a gaming console but a device encompassing all aspects of entertainment with this in mind the console is equipped with a PCM CIA Port that could accommodate accessories including one that is in development an ethernet adapter however the issue is that file formats are evolving and as it's not yet fully defined Sony makes the somewhat risky choice to integrate a method that allows updating the console's operating system through special memory cards which will have implications later on and remember while Sony is preparing its new console the year 19 1998 marks a Revival for Sega which introduces its Dreamcast a new Next Generation console that outperforms all current consoles and is 12 times more powerful than Sony's Playstation the Dreamcast has an architecture very close to that of a PC making ports of games on the console much simpler than before throughout this time rumors about a new Sony console are everywhere with images seemingly appearing out of nowhere speculations about a potential DVD player a supposed new Final Fantasy in the works it's mind-boggling the console is already everywhere even though it hasn't been officially announced but the sales of the PlayStation are exploding the year 1998 is an exceptional year for Sony's Playstation it's truly the year when Sony's strategy of partnering with numerous thirdparty developers pays off as they finally deliver an astonishing number of highquality games the excellent racing simulation Gran Turismo the Pinnacle of 3D fighting games with Tekken 3 the outstanding Metal Gear Solid Resident Evil 2 Tomb Raider 3 Parasite Eve and many others all within a few months as a result Sony can't announce the PlayStation 2 it would significantly impact the sales of the PlayStation and the recently released Blockbuster games throughout the year Sony gives interviews and states that there is no new console in development only the PlayStation which they will continue to support for a good while however sega's early entry into the new console generation poses a problem because the Dreamcast is much more powerful and featur since there is no response from Sony the company stock takes a hit after sega's announcements a bit panicked and to stem the bleeding terisa tokona confirms to America's Business Week Magazine that a new console is in development and will likely use DVD support this takes the rumors to a whole new level Sony's announcement of the PlayStation 2 is supposedly planned for November 1998 and the rumors become extremely persistent every month new speculations emerge everywhere interestingly the absence of an official statement from Sony generates so much buzz and rumors that it partly overshadows the promotion of the Dreamcast everyone is so curious about what Sony is preparing that it inadvertently promotes a console that hasn't even been announced something quite unprecedented for any other gaming console at the same time it's understandable the graphics of the PlayStation 1 are dated and Sony managed to release the PS1 around the same time as the Saturn now everyone is wondering what they will do next and in late 1998 a new console is announced Project X designed by VM Labs promising significantly better graphics than the PlayStation 1 and Nintendo 64 but more importantly they announced that the console will be able to play DVDs something quite revolutionary Additionally the console will be sold at an affordable price Sony is being overshadowed by this new console even though Project X is not exactly a console but rather a DVD player that can run some games some major Publishers like Electronic Arts and Ubisoft are very interested Motorola even announces that they will license the console and launch a product based on it the Project X is becoming more and more serious after all this everyone is convinced that Sony will announce its console in November which seems logical because they are being overtaken by their competitors moreover acarina of time is about to land and launch one of the biggest storms in the history of video games everyone sees it coming it has been the most anticipated game for months and the first reviews are extraordinary announcing the PlayStation 2 in November would also overshadow the launch of the Dreamcast which would be great for Sony it almost seems like a no-brainer the rumors persist claiming features such as backward compatibility with PS1 games DVD playback 10 million polygons per second and it continues to attract a lot of attention however 1998 is the year when the PlayStation sold the best in its entire history surpassing the already staggering figures from the previous year Sony cannot afford to break this momentum by announcing the next console so they decide to remain silent about their next console then in late 1998 the Dreamcast arrives in Japan and has a rather respectable start however two major problems arise first the Dreamcast Falls victim to a global semiconductor short quickly leading to stock shortages sales are below expectations secondly the Ocarina of Time storm hits the gaming world at an astonishing speed it's absurd it becomes the bestselling Home console game of 1998 despite being released in late November facing shortages and being out of stock worldwide it receives perfect scores in almost all magazines with many calling it the greatest game of all time putting Nintendo up front under these circumstances it's clear that Sony cannot announce a new console that would be too risky since everyone has their eyes on the Dreamcast and Ocarina of Time in the end the PlayStation 2 remains a mere fantasy and speculation for the general public some journalists even wonder if a console is really in development while internally at Sony preparations are underway for the biggest promotional campaign in the history of video games in early 1999 Sony will send the First Development kits to a select group of developers but the information leaks and now anticipation Begins for a release in a few months probably by the end of the year the PlayStation 2 is once again capturing everyone's attention even though nothing official is announced then in February 1999 the prestigious and very reputable UK magazine Edge announces that they have gathered a lot of information about the PlayStation 2 indeed they disclosed its launch date price and some technical specifications this announcement generates a lot of attention because much like famitsu Edge holds significant influence in the gaming World further heightening expectations then in March 1999 Sony invites hundreds of journalists from around the world to a special press conference well they will present the technical specifications of the upcoming console it's mindblowing the presentation focuses on the emotion engine and it is simply monstrous Sony announces that they have developed the most powerful consumer processor on the planet exclusively for their next console better than words they showcase nine technical demos of the console that leave a huge impression on the attending journalists it seems to outperform the PCS of that time and the journalists are impressed they even invited many well-known developers to give a positive image to the console greatly enhancing its credibility Sony also announces that it will be backward compatible with the entire PlayStation 1 game live Library something very rare at the time but which worked well for Nintendo when they released the Game Boy Color compatible with Classic Game Boy games this announcement has a bombshell effect in addition to that Sony announces compatibility with Dolby Digital sound potential DVD playback via an accessory to be obtained later and that the games will initially come on CDs and later on DVDs they explain their new vision for the console aiming for a connected device with the internet and an entertainment device for the whole family rather than just a gaming machine with a possible service for movies music and images with a monthly subscription they conclude by revealing that they have built new factories specifically to produce the emotion engine aiming to avoid shortages and announce a release for winter 2000 in Japan followed shortly by the rest of the world it's mindboggling and the PlayStation 2 is on everyone's mind even though the console hasn't been revealed yet people are in shock due to its announcements which have already made the Dreamcast theoretically obsolete as the PlayStation 2 is much more powerful some journalists even refer to the Dreamcast as a console from a previous generation which will severely impact Sega since the console has just been released in Japan and is about to arrive in the rest of the world the countdown has begun the PlayStation 2 is coming to Japan in a year Nintendo sensing the shift in momentum is forced to announce that a new console is in the works even though the Nintendo 64 has been on the market market for Less Than 3 years Sony has dealt a significant blow to Sega and Nintendo with these announcements alone and then we reached May 12th 1999 it's the start of the E3 and it's one of the most anticipated e3s in the history of video games Sega is set to announce an international release date for the Dreamcast the PlayStation 2 is expected to make an appearance and Nintendo has declared that they will unveil the technical capabilities of their next console all eyes are on the event taking place in Los Angeles it's a real war that the manufacturers are about to engage in Nintendo's Booth focuses on the Pokemon Mania which has just exploded worldwide and on visually impressive demos like Perfect Dark sega's Booth reserves a significant space for Sonic adventures and Sony's Booth showcases the famous and highly impressive technical demos to the general public then the conferences arrive and Nintendo drops a massive bombshell they announc project dolphin the code name for the new console produced in partnership with matsua IBM and Panasonic Nintendo declares it will be the most powerful console ever created even more powerful than the PlayStation 2 along with that they reveal that the games will use DVD as the storage medium Nintendo is officially abandoning the cartridge format and on top of that they announce a new DVD format that will be impossible to copy and pirate they conclude by announcing that it will be available by the year 2000 just a few months away it's incredible then Sega announces an international release for its Dreamcast in September for the United States and Europe accompanied by games like Sonic Adventure that will be available simultaneously with the console and also announces multiple games and a huge promotional campaign on the other hand Sony repeats somewhat what they have already announced for the PlayStation 2 emphasizing once again those famous technical demos that are once more breathtaking the market is buzzing and a huge breath of fresh air sweeps through the industry however while Nintendo has just announced its new console thereby jeopardizing the sales of games for the Nintendo 64 Sony with backward compatibility makes purchasing PlayStation games just as crucial since they can be played on the next console Now All Eyes Are Fixed On The Dreamcast and its Global release with Sega hoping for a better outcome than the Japanese launch the summer is marked by an extensive promotional campaign for the Dreamcast worldwide even allowing Americans to rent the console before its official release to get a feel for it advertisements continue Non-Stop and the console arrives in the United States on September 9th 1999 priced at $200 against all expectations the launch is a huge success notably due to the 18 games available most of which are published by Sega itself in Just 2 weeks over 500,000 units are sold surpassing sega's initial predictions unfortunately a manufacturing def effect in the Dreamcast GD ROMs the game CDs creeps into one of its factories tarnishing the console's image despite its overall positive momentum however that's not the only hiccup as due to the shortage the European release had to be delayed by a month and finally arrived in October 14th 1999 despite this setback the launch in Europe is also a massive success thanks to its affordable price robust promotional campaign and most importantly the excellent games already available with a diverse lineup imagine all of a sudden a new more powerful console than the others is hitting the market at just $200 with around 20 highquality games including Soul Caliber The House of the Dead 2 and especially Sonic Adventure causing quite a stir in just one month Sega sells 500,000 Dreamcast units in Europe too surpassing their initial goal of 500,000 in 3 months it's an utterly wild success and the sales continue to soar for weeks Sega makes a triumphant comeback stronger than ever and also announces an online gaming service for the following year and then comes the Tokyo game show at the end of 1999 and the event that everyone was waiting for Sony finally gives a major presentation for its new console the PlayStation 2 starting with an endless speech ironically Sony announces that the console is at the center of Sony's renewal that it will be closely associated with the Sony name which they intend to prominently feature everywhere this is ironic because for the first PlayStation they were so concerned about potentially damaging their corporate image that they created an entirely new brand the PlayStation brand a new division they called Sony Computer Entertainment with no mention of video games and in the early advertisements and models the Sony name wasn't even present now it's a different story indicating that the console is shaping the future of the company they move on to showcase the console's features and it's mind blowing in again first the highly significant backward compatibility which was already confirmed then the introduction of the new controller the dual shock 2 with very few changes except that the sticks are more precise and all buttons are pressure sensitive capable of measuring the four supplied theoretically translating it into gameplay ideas next the new memory cards are presented containing 8 megabytes of data eight times more than those of the PlayStation finally the console is revealed with a design that everyone describes as very modern and sober not resembling a typical console and that can be placed either vertically or horizontally the first words concern it somewhat high price but Sony is confident as they announce a launch of 1 million PlayStation 2 units exclusively in Japan the largest console launch in the country's history they also announced the PlayStation 2 can process up to 60 million polygons per second to put it in perspective recall that the Dreamcast can display up to to 8 million polygons per second making this announcement seem utterly astonishing but also too good to be true right after that Sony announces that not only will PlayStation 2 games indeed use DVD as their medium right from the release unlike what was stated a few months earlier but also that the console will be able to play DVDs without any additional accessories or add-ons all included in the console's remarkable price internet connectivity is also announced along with the much anticipated music movie movies and image service that Sony aims to launch instead of technical demos playable demos await the mesmerized audience the announcement has the impact of an earthquake in the gaming World everyone is captivated by the PlayStation 2 and its new game demos but at this point it becomes apparent that the game demos are far from as convincing as the technical demos from several months ago which in fact did not really run on a real PlayStation 2 Hardware however this doesn't diminish the hype generated by these an announcements as everyone overlooked the graphical downgrade Sony drives the point home by declaring that no less than 100 games are currently in development and will be released in the first year 100 games an enormous number in a similar vein Sony Computer Entertainment America reveals that they had allocated a budget of $150 million for the promotion of the console in the United States alone it's the most expensive promotional campaign in the history of video games at the time for comparison Nintendo had spent $15 million on the promotion of the Nintendo 64 over 2 years in the US Sony is planning to spend 10 times more in just a few weeks it's absolutely staggering the Dreamcast whose sales are declining is forgotten and the only one still managing to attract some attention is Microsoft there are rumors suggested that Microsoft might be preparing a game console and everyone is wary because it is estimated that Microsoft has five times more money than Sony this could potentially shift the current Dynamics where Sony is much larger than its competitors and is using its resources to stifle them few months later at the beginning of the year 2000 square organized a massive event the square Millennium to present the upcoming developments for the company they announced the play online project emphasizing online services Square began developing its tools including an internet browser compatible with the PlayStation 2 and focused on creating online games a substantial list of games was was planned starting with a special episode of Final Fantasy which would be a MMO RPG released on the PlayStation 2 along with two other Final Fantasy games planned exclusively for Sony's consoles this announcement was a significant win for Sony Square being one of the world's largest game Publishers and the largest in Japan provided exceptional support just weeks before the console's release Square not only showcased its console but also undermined Sega stance on internet connectivity a position Sega was vigorously defending Square delivered a strategic blow to Sony promoting its console over Sega and doing so with one of the most popular franchises in the gaming world as I mentioned in the documentary about the Nintendo 64 when Square snub Nintendo Square truly serves as a role model in Japan influencing many Japanese companies to naturally turn towards the PlayStation 2 with its choices and then begins a rather peculiar Japanese marketing campaign take a look at this they are simply short Snippets of daily life with the PlayStation 2 Logo at the end of the advertisement and a number which seems to indicate a countdown it's quite strange and Abstract because you don't even see the console that much and you don't even know what product they're trying to sell on the other hand just the act of embedding it into everyday life Snippets anchors the console in daily life as if it naturally belongs there and it pequs a lot of curiosity the these advertisements were broadcasted on a large scale and bombarded at an insane frequency showcasing various scenes of everyday life for everyone mothers office Executives high school or college students on their way to school it's an extreme extensive promotional campaign targeting a massive audience and it's going to work like a charm because the PlayStation 2 is eagerly anticipated by thousands of Japanese who have set up camp in front of stores sleeping with extremely long cues there are so so many people in front of stores waiting several days before the release in freezing weather that the police have to disperse them for their own safety Sony even offers pre-orders online on their website and in literally 2 minutes their server crashes due to an overwhelming number of connections Sony has planned for 1 million consoles but it might not even be enough given the tremendous anticipation finally we arrive at March 4th 2000 and Sony is gearing up for the biggest launch in the history of video games but of course nothing is as simple in the gaming world and nothing will go as planned we arrive at March 4th 2000 at 600 a.m. the PlayStation 2 is finally available in all stores it's about time because there are so many people in the streets and in front of the stor is blocking the passage that the console's release is supervised by the police and it's completely insane throughout the week again the streets are filled with people queuing for hours and hours in the freezing cold and even in the rain all that just for a Playstation 2 the event is covered by the Japanese TV channels some even using helicopters for easier mobility in Just 2 days Sony has already sold a million PS2 units the biggest launch in history the worst part is that a significant number of people won't even manage to get the console leading to tragedies like a man who jumped off a building after being told there were no more PS2 units available or gangs attacking individuals who bought it to snatch it away it's such Madness that even Sony is surprised by this unbelievably Wild start as they initially plan to sell a million units in 6 days not two and the console goes out of stock and strangely the PlayStation 2 is prohibited from export to other countries because it's so powerful that it's considered a supercomputer by the Japanese government hence it could be used against Japan's interests many interpret this as anti-terrorism protection leading to later false rumors such as one claiming that Saddam Hussein then president of Iraq at war with the United States is building a supercomputer by connecting dozens of PlayStation 2 units this of course is a completely untrue rumor unfortunately the release of the console in Japan is marred by numerous issues firstly the joysticks of the new controller are too stiff and require excessive force to move coupled with some connectivity problems more significantly there are frequent crashes and freezes occurring not only during PlayStation 2 games but also when playing PlayStation 1 games listening to CDs or watching DVDs the console faces numerous technical problems in various situations including graphical glitches sudden disappearance of 3D models and issues with the console's operating system especially concerning the memory card it's a launch severely tainted by technical problems far more prevalent than the Dreamcast launch or any other console before furthermore strangely enough a secret code is discovered in the console's DVD player through a simple manipulation with a controller the CD and DVD player of the console becomes region free meaning it can now play DVDs and CDs from other countries it may not seem like a big deal but it poses a significant problem because an international agreement among CD and DVD player manufacturers prohibits the resale of DVDs in a country before its theatrical release essentially this means that for example Japanese consumers can import a DVD of a major Hollywood film before it's even release in Japanese theaters and watch it on the PlayStation too Sony finds itself in a predicament and is exposed to substantial sanctions as a response they release numerous updates in the form of a CD to be inserted into the console installing the update on the console's memory code however as you might suspect hardly anyone bothers with this update why would a user go out of their way to get the CD and prevent themselves from playing foreign DVDs perhaps the most significant problem with the console is that it launches with 12 games which is decent and more than the Dreamcast however the console's launch games are absolutely disastrous they include uninteresting titles like maang games which have already been released on all previous consoles fantavision a firework game that showcases the console's particle handling but lacks any meaningful gameplay it's supposed to be a video game not a technical demo and it's produced by Sony themselves on top of that there are poorly rated games and magazines such as the O story an uninteresting FMV game produced by Enix American arcade a lackluster pinball game on the PS2 Konami jyu World Soccer 2000 a soccer game far from International Superstar Soccer also produced by economi an IQ remix plus which looks more like a technical demo than a real new game the games are truly bad and completely Unworthy of a new generation especially from the self-proclaimed most powerful console in history moreover at the same time Final Fantasy 8 Grand Turismo 2 Silent Hill and vagrant Story 't released on the previous console but it gets even worse because in addition to the lack of Interest they are riddled with technical problems loading time times of 2 minutes for some of them Visual and audio glitches and some are completely buggy for instance a train a train simulation which were common in Japan crashes from time to time with no apparent reason Street Fighter EX3 has disappearing polygons during fights and worst of all Ridge Racer 5 has disappearing scenery and includes a bug in its save system that destroys the user's memory card and crashes the console every time it reads data from it adding to all of this the graphical appearance of the games is not pleasing and it's light years away from what is available on the Dreamcast at the same time the PlayStation 2 earns reputation as a console with no interest in games a significant setback for a new console supposed to revolutionize the world of video games Sega takes advantage of the situation as during the TGs they announce impressive games for the Dreamcast including Soul Caliber 2 samb di Amigo the outstanding virtue of tennis and especially Jet Set Radio which Wows with its almost unseen cell shading Sega even announces a significant Improvement in its online service demonstrated by Marvel versus Capcom 2 but ultimately none of that matters for one simple reason the PlayStation 2 is not selling well because it's a gaming console it's selling well because it's a DVD player capable of being used as a game console all Japanese consumers flock to it due to the hype and its excellent DVD player and this becomes evident not only because they largely ignored the games mentioned earlier but also because its release significantly boost DVD sales in the country in fact the DVD of Matrix becomes the bestselling item in Japan for weeks after the console's launch creating a societal phenomenon so the outcome is mixed on one hand Sony has just achieved the biggest launch in the history of gaming consoles on the other hand no one bought the console for its games and more importantly the games are not selling well this eventually becomes a problem because Sony is supposed to make profits from game sales and not from the console sales but it's time to bounce back as we reach June 2000 and the E3 2000 is finally here with Sega supporting its Dreamcast Nintendo set to announce its new console the project dolphin and Microsoft possibly unveiling its Xbox Sony asked to show strength with the PlayStation 2 and overcome the somewhat lackluster launch this is a Clash of the Titans and the E3 2000 is the first first E3 with four major players in a moment when the video game industry is changing entering a new era Microsoft presents some technical demos of games for its upcoming console and it's mind-blowing the technical demos are extraordinary and surpass the competition by a significant margin to the extent that many wonder if these demos are misleading as Sony did with its PS2 however Xbox developers confirm that everything will indeed run the same way on the upcoming console but the Xbox is scheduled for late 2001 an eternity for gamers eagerly anticipating Sony's Playstation 2 on the Nintendo front an avalanche of games is set to debut on the Nintendo 64 banjo Tui Resident Evil Zero Pokemon Stadium conquer Bad Fur Day Paper Mario Mario Party 3 Mario Tennis and two titles that will stand out perfect dark the spiritual successor to Golden Eye that left a massive impression on everyone and Majora's Mask which reuses the engine of Ocarina of Time for a completely new adventure promising to be unique and original however while everyone expected a big presentation they didn't even show the project dolphin which is supposed to be released this year still everyone understands that it's likely not going to be seen in 2000 giving Sony a clear field for a while well not entirely because Sega delivers an excellent E3 following the trend set by the previous TGs with titles like alone in the dark Fantasy Star online and especially Jet Set Radio which impresses everyone along with Sonic Adventure 2 sega's E3 is exceptional on Sony side there isn't much the PlayStation 2 will rely on Metal Gear Solid too but it won't be a PlayStation 2 exclusive Sony's Booth barely showcases PlayStation 2 games instead it features mostly PlayStation 1 games even though the new console is set to launch worldwide in a few months even worse many developers start complaining about the console but to sweeten the deal Sony does what Sony does best throwing a massive party right in the middle of the Sony picture studios in Los Angeles complete with unlimited food and drinks this extravagant party cost $2 million and is extended to the journalists attending the show however this doesn't change the fact that the console is losing momentum due to Fierce competition Sony starts feeling the Heat and decides to enlist the help of David Lynch a filmmaker known for his distinctive work and exent personality they want him to produce an advertisement for the PlayStation 2 in Europe and the United States granting him complete creative freedom and an almost unlimited budget the only given theme is that of a new world and here is the PlayStation 2 advertisement produced by David Lynch before its [Music] release sh up down not all not waking not there sleeping where [Music] we welcome to the third place PlayStation 2 the third place it's a very strange ad completely opposite to the ads Gamers were accustomed to at the end of the 9s an adult man walking down a corridor regardless of the direction he looks before his head attaches from his body then reattaches before ending up in front of a mummy and a duckhead man who says welcome to a new world no game footage or images of the console unlike in Japan but even more abstract it generates a great deal of curiosity about the console many people not interested in video games come across this ad and others like it and it inevitably sticks in their minds prompting them to inquire about the console Sony succeeds in an exceptional promotional campaign as interest in their console keeps growing overshadowing competitors and even eclipsing the launch of Sega net the online service initially in the United States and later in Europe it's incredible despite dreamcast's amazing E3 with plenty of big games the PlayStation 2 grabs all the attention and Dreamcast gradually Fades from everyone's Minds as sales continue to decline the sales figures for PlayStation 2 games in Japan are released at the same time and it's bizarre in 6 months more PlayStation 2 consoles were sold than PlayStation 2 games it's ridiculous most people who bought the console in the last 6 months still haven't purchased any games it's completely astonishing even though the console technically sells incredibly well 5 million in 6 months is mindblowing these are loss making sales for the console because the money they're supposed to recover from game licensing isn't coming in and Sony has been losing a significant amount of money since the console's release developers who made substantial investment to release PlayStation 2 games are also in danger consequently many of them will take advantage of the release of the PS1 a new model of the PlayStation 1 to focus on reproducing PS1 games leaving the PS2 without a substantial game library and then comes Nintendo spaceworld 2000 and Nintendo finally announces and showcases its next console the Nintendo GameCube it's incredibly impressive seemingly more powerful than the PlayStation 2 though no further details are provided several game demos are presented including one featuring Luigi a technical demo of a Mario game the introduction of their new portable console the Game Boy Advance which can connect to the GameCube additionally new Mini DVDs are introduced addressing the major issue of long loading times associated with regular DVDs with the mini DVD games may contain less data but load much faster also making piracy and game copying more challenging alongside this a new controller is on unveiled described by journalists who have tried it as an ergonomic Masterpiece however a significant drawback of the console is revealed contrary to previous announcements the GameCube won't be able to play DVDs providing a huge Advantage for Sony and on Microsoft's front they start gaining momentum firstly because they've just acquired Bungie the studio developing a game that has been grabbing attention for months with a game called Halo that impressed everyone last E3 moreover developed velers who receed the development kits are utterly amazed and one over in addition to its monstrous capabilities it's easier to develop games on it even more so than on the PS2 everyone begins to see Microsoft and its Xbox as a serious threat to Sony in addition Sony struggles to produce as many PlayStation 2 units as planned especially since the demand in Japan remains high and they need to replace units with technical issues consequently Sony announces the postponement of the European release of the console originally set for October 26th now arriving on November 24th in Europe to prioritize the American Market Sony is in a precarious situation and the Allure of the PlayStation 2 is diminishing simultaneously they lack compelling games to launch the console creating a bit of a deadlock as a solution they come up with the idea of leveraging the PlayStation 2 supply issues as a marketing strategy repeatedly claiming everywhere albeit falsely that there won't be enough for everyone this turns out to be a brilliant move that completely reverses the situation generating a massive Global hype for the console several days before the American release much like in Japan thousands of people camp outside stores in anticipation Sega attempts to salvage its console by significantly lowering its price and capitalizing on the frustration of players unable to get a PS2 hoping they will opt for the Dreamcast both in the United States and Europe but it's not going to help a genuine cultural phenomenon is emerging around the PlayStation 2 greatly aided by an utterly wild marketing campaign and this orchestrated scarcity Sony seizes the opportunity to announce that 29 games will be available at the American launch of the console 29 is mindboggling adding to all the hype and everyone eagerly awaits the arrival of the console which promises to be absolutely insane and [Music] exceptional [Music] [Applause] on the eve of the PlayStation 2 release and in an attempt to overshadow Sony Nintendo provides a wealth of information about the GameCube and The Game Boy Advance microsof follows suit finally revealing details about its upcoming console and announcing support from 156 development Studios however it's all in vain everyone is clamoring for the PS2 on October 26th in the the United States a new frenzy ensues as the 500,000 units produced are snapped up within hours it's absolute Madness with people spending the night outside stores only to be left without a console as it arrives in Europe and France the scenes speak for [Applause] [Music] themselves [Applause] [Music] [Applause] it's incredible never before had the release of a console triggered such hysteria similarly to Japan DVD sales significantly surge in the United States and Europe right after the consol's release priced at only $300 in the US the PlayStation 2 serves as both a DVD player and a gaming console it's incredible even though it is sold at a higher price in some European countries like France and the United Kingdom the results are the same concerning the console Sony has addressed many technical issues observed in the Japanese versions such as the dual shock 2 joysticks and numerous crash and glitch problems although several issues particularly with DVD playback persist so how can they sell the console at such an affordable price well they are selling it at a loss and Sony has a strong financial position to absorb these losses however the major source of Revenue comes from the accessories which are sold at exorbitant prices $50 for the stand $60 for the multitap which was thought to be outdated since Nintendo introduced the four ports on the Nintendo 64 5 years earlier $60 for the memory card $60 for the controller and $40 for the almost indispensable RGB cable these prices might seem outrageous but once you've invested in the console you have to go along with it and Jim Smith who worked at Sony remembers how the DVD player Sav the console I bought my first DVD player a few months before the console was released for $400 that was still the price they cost at the console s's release which itself was priced at $300 this means that the PlayStation 2 is one of the cheapest DVD players which completely boosted the console's launch and once again the only downside is that the games are not selling despite a 30 game lineup already available players are overlooking the games and once again it is used more as a DVD player than as a console and that remains a significant problem but then why are the games being ignored well it's the same old story games lacking in interest riddled with technical problems and not graphically impressive at all especially when Nintendo and Sega are releasing hit after hit Majora's Mask Jet Set Radio shenmu Paper Mario Super Smash BRS Etc the PS2 games look ridiculous in comparison David Reeves president of Sony Computer Entertainment Europe recalls the game lineup I must admit it wasn't very convincing we had promised everyone from months that the PlayStation 2 would offer Toy Story level Graphics but that was absolutely not the case but then why do developers struggle so much to deliver quality games for the console well quite simply because development on the PlayStation 2 is very complex and light years away from what developers were used to mainly due to the emotion engine which is purportedly twice as powerful as the Pentium 3 found in PCS of that era and incidentally what we'll find in the first Xbox well this emotion engine will introduce what's called parallel programming in simple terms on other consoles you send instructions to the processor and the graphics chip which perform their calculations and then cach the necessary data temporarily and all of that goes directly into the ram advancing the game on the PS2 there's actually several co-processor working together so developers need to distribute which co-processor does what and when and what to do with the process data sometimes they must wait for the co-processor to finish its processing before continuing this requires much more work and money because it's much longer and more complex to program Additionally the caches have very small sizes preventing developers from storing data in them this implies that they need to constantly recalculate data since for example they are too small to store a detailed 3D model meaning the 3D model must be constantly recalculated for display it doesn't mean it's not good it's just that the console has an exceptional architecture that allows for incredible things but is challenging to use requiring a lot of learning and experience and this many people will complain about whether at Namco Konami or squaresoft remember that development on the Saturn was extremely complex due to a chip added at the last moment of the conception well for developers it's even more complex on the PlayStation 2 Shinji Mami the producer of Resident Evil and many other games at Capcom explains for the first PlayStation Sony provided an excellent programming Library the library did a lot of work on its own but with the PS2 there's no more Library we have to create our own Library which poses a lot of problems because there are a lot of choices to make to achieve the same result as a result games struggle to arrive and those that do are subpar in addition to that Nintendos seas and Microsoft consoles are all platforms where development is easy Sony fears that developers will turn to these consoles and will continue to approach Studios offering them very advantageous deals a lot of advertising and sometimes even technical support to help them understand this emotion engine Chris Dearing who was in charge of this remembers we were approaching Studios like crazy to get exclusives I had meetings all day where I offered a lot of economic benefits like free promotion for example and I remember a meeting with Kelly suner CEO of Take 2 I managed to secure exclusivity for a game called state of emergency then I asked him if he had anything else in stock he replied I have a new Grand Theft Auto game in the works the Grand Theft Auto series was starting to make a name for itself so I said okay and what comes out of all this is that Sony will pay Studios not only to fuel its PlayStation 2 but especially to abandon their projects plan for the GameCube Xbox and Dreamcast and it will work very well Microsoft will follow suit and finally unveil its new Xbox with the technical specifications of the console and they are monstrous it surpasses the PCS of the time it surpasses the PlayStation 2 it surpasses the GameCube it surpasses the Dreamcast the Xbox is now the most powerful console in the history of video games and by a very very wide margin it is estimated to be two to three times more powerful than the PlayStation 2 added to all this are the developers they have hired and the games that are supposed to arrive coupled with a monstrous commercial budget even bigger than Sony's Microsoft is gearing up to dominate the world of video games and to make matters worse for Sony they release a revision of the PlayStation 2 in Japan but it has very serious technical issues with games that simply do not work Sony is saved by one thing Microsoft announces that its Xbox will not play DVDs without the purchase of an accessory the PlayStation 2 is therefore the only console that will be sold as an entertainment product bringing together video games movies and music in one device and in February 200 1 Sega announces that they are withdrawing from the video game console Market Sega will only publish and develop games and will no longer produce any console which means this is the end of the Dreamcast Sega was completely suffocated by debts and since the release of the PlayStation 2 the sales of the Dreamcast which were already insufficient have completely collapsed pushing the company to the brink of bankruptcy it's an earthquake in the world of video games after so many years so many consoles so much success Sega will never be a major player in the video game industry again this decision will make everyone realize that the world of video games has changed and now it is an industry dominated by the largest companies in the world except for Nintendo the fall of Sega will have a huge impact on mentalities and many people will decide not to buy Nintendo's next console because they already see them as dead against these two giants they fear that after buying the GameCube the company will go under a few months later and the console will be left abandoned the PlayStation 2 has so stifled the Dreamcast that it has eventually knocked out Sega even though it has almost no good games and this is a windfall for Sony which was facing Fierce competition from Sega in Japan and will even start welcoming games developed and published by Sega it's incredible for them they lose a competitor and gain a huge publisher a few weeks later Crazy Taxi developed by Sega will arrive on the PlayStation 2 and become one of the bestselling games on the platform Sony who was suffering from a lack of quality games has just struck the deal of the century and this happens just as Sony releases Grand Turismo 3 finally a great game on the console a very Nic looking one at that and everyone begins to see the potential in the console which is finally starting to become a gaming platform as Gran Turismo 3 surpasses a million units fairly quickly and it's in this context of a gaming war that the e32 one takes place which promises to be completely wild Nintendo kicks things off with a conference on the Nintendo difference and a trailer for a new Smash Brothers [Music] [Applause] game [Music] a totally crazy reveal that has the journalists won over then they follow up with I quote the new game in the Mario series and here Nintendo shoots itself in the foot this is the game that's supposed to convince everyone to buy the console now I love Luigi's Mansion and I'll talk about it soon on the channel but it's very different from what everyone was used to remember that the Nintendo 64 was was represented by Super Mario 64 which had actually managed to overshadow the other consoles but Luigi's Mansion cannot take the same role they showcase the game discs emphasizing that they are impossible to Pirate as if it were a marketing Point whereas the opposite might have been more convincing for players then they present the Panasonic q a special edition of the GameCube that can play DVDs but will be very expensive and only released in Japan and finally they show a few third-party games and some uninteresting demos before revealing the console's launch dates at the end of the year it's not impressive nor convincing this is the mist of a real war Sega has just died and Nintendo needed much more than that to make an impact Sony is rubbing their hands they had feared Nintendo would pull a rabbit out of their hat but in the end there will be almost no games at the launch of their console and then comes Sony's conference where they announce a remote control for the DVD mode of the PlayStation 2 which is weird for a game console conso they show a few seconds of games here and there where you can't see much then they promote the PS1 with a built-in screen we get a few game titles scrolling by a 10-minute demo of Madden the famous American football series it continues with the trailer for The Final Fantasy movie because yes squaresoft was working on a movie at that time a technically impressive but commercially unsuccessful film then it goes on with a lengthy presentation of Devil May Cry and a fast-paced trailer of Metal Gear Solid 2 and then the accessories the ethernet adapter for the console and a pack to turn your PS2 into a PC which is once again weird for a game console Sony's conference is not great either even though they had everything to finish the job given the number of mind-blowing games in development for the console they chose to showcase the PS1 with a screen a DVD remote it's very disappointing just a few weeks before the release of the GameCube in the Xbox and then it's Microsoft's turn and theid presentation is catastrophic there are technical issues some misplaced jokes and the only game that will save the presentation is Halo which looks truly impressive they announced that they will launch the Xbox in Japan before Europe something everyone had anticipated as the worst idea ever but excellent news for Sony since Europe is its playing field and they'll have time to establish themselves there without competition the manufacturers conferences are disappointing very disappointing in such a crucial year for the gaming industry but E3 is not just about the conferences it's also a massive Expo where games are showcased a festival of games on display Metal Gear Solid 2 Luigi's Mansion Grand Theft Auto 3 Halo Pikman Final Fantasy 10 iiko max pain Crash Bandicoot Devil May Cry and the list goes on the grand winner of E3 in fact is Sony because a vast majority of the game showcased at the event will be released exclusively on the PlayStation 2 Ken karagi breaks his silence to claim that Microsoft has already lost the console war criticizing them for showing almost no games and not understanding the video game Market Microsoft responds timidly but hostilities are underway and Sony's attitude betrays nervousness about such a massive company as Microsoft diving head first into the gaming industry their anxiety might be justified the GameCube and the Xbox could pose a significant challenge to the console [Music] the arrival of Microsoft and its Xbox is causing a lot of concern and even Panic for Sony and Nintendo just imagine one of the world's largest companies suddenly entering this market and investing tremendous amounts of money inevitably making everyone nervous Sony particularly anxious about Microsoft's arrival does something incredible to slow down Microsoft they threaten retailers saying they won't Supply them with PS2 units if they sell the Xbox in their stores it's a crazy move that leads many retailers to choose to boycott the Xbox and focus solely on the PlayStation 2 Sony solidifies its dominance by using its power to control the market and karagi has many reasons to be optimistic about what's coming the PlayStation 2 has just lowered its price but more importantly the big games are finally starting to arrive on the console Final Fantasy 10 arrives like a messiah in the early game drought and having a new visually stunning Final Fantasy is going to make it take off like a rocket it's followed by Grand Theft Auto 3 the graphically exceptional Metal Gear Solid 2 Jackson Dexter by Naughty Dog Devil May Cry by the creators of Resident Evil Max Pain by Rockstar Silent Hill 2 Tekken 4 even time Splitters a multiplayer online game The Games took time to arrive but they all came at once right before the the release of competing consoles and they address the PlayStation 2's biggest flaw the console sales are going to literally explode even before the Rival consoles hit the market and before knowing exactly what they'll offer the PlayStation 2 has taken a considerable lead and on top of that all these games are going to overshadow the promotion of the two competing consoles which I remind you lack a solid lineup we reached September 14th 2001 and the Nintendo GameCube is finally available in Japan the sales aren't fantastic well that's what one might think if we only look at the sales figures which are five times lower than the PlayStation 2 launch but in reality Nintendo sold everything It produced Nintendo lacks both Sony's production capabilities and a strong game lineup not to mention a DVD player so selling that many units in this context especially over a year and a half after the PlayStation 2 launch is a discreet but decent debut and while the GameCube was supposed to arrive on November 5th in the United States it will be delayed by 2 weeks due to production issues and will therefore will be released 3 days after the Xbox in the same week GTA 3 Metal Gear Solid 2 and Spider-Man a highly popular hero are released on the PlayStation 2 setting the stage for an enormous battle and right after comes November 15th 2001 and the Xbox is finally on the scene shortly after the GameCube arrives in the United States the sales of both machines are very close with a slight Advantage for Nintendo however overall we are far even light years away from the release of the PlayStation 2 the simultaneous release of the two consoles casts a shadow on each other and neither manages to stand out many thought that the Xbox would outshine the GameCube because it comes with Halo while there isn't even a Mario game available at the GameCubes launch however the GameCube will distinguish itself with a huge advantage of its more affordable price of $199 compared to the $299 from Microsoft's machine it's an initial setback for Microsoft despite their enormous and more expensive promotional campaigns than the competition nevertheless they claim to be satisfied with the consoles launch but the big winner in all of this is once again Sony who will sell more PS2 units than the Xbox and GameCube combined in fact Nintendo and Microsoft clearly stepped on each other's toes and once again Sony is rubbing their hands together emerging as the big winners of the end of 2001 however this Victory won't last long because Nintendo announces some major releases for 2002 a 3D Metroid the highly anticipated new Mario game Super Smash Brothers Melee that captivates everyone's imagination and Nintendo even manages to secure exclusives from Capcom such as the Resident Evil series on Microsoft side they also announced significant releases like Jet Set Radio Future Splinter Cell and most importantly the introduction of online gaming in a much simpler and more polished way than the competition the year 2002 shapes up to be the Pinnacle of this console war the year that will decide everything despite Sony's considerable lead the competition seems armed to bring it down from its pedestal it's the first real year where Sony will have to fight especially considering both Sony and Microsoft are selling their consoles at a loss losing about $100 per unit which is astounding the risks are enormous whereas it's only $20 for Nintendo and its GameCube according to famous French magazines and then Microsoft kicks off its massive marketing campaign for the Japanese release of the Xbox in February 2002 the promotional campaign is enormous and at the same time it becomes public information that Microsoft doesn't plan to turn a profit on its Investments right away because they anticipate Financial losses of1 billion doar over the next 3 years it's absurd and it gives you an idea of just how much Microsoft operates on a whole different level but at the same time Square announces and unveils Final Fantasy 11 an online MMO RPG for consoles exclusively on the PlayStation 2 this announcement generates significant attention especially in Japan just before the Xbox release to compete Microsoft decides to lower the price of the console in Japan even before its launch and at the same time Nintendo is delaying the release of its GameCube by 2 months in Europe pushing it to may already the middle of the year on February 22nd 2002 the Xbox lands in Japan resulting in a catastrophe sales are abysmal only half of the produced units find buyers which is truly inadequate for Microsoft having invested millions in the promotional campaign this campaign incidentally was quite clumsy and on top of the console's poor performance it sold even worse than the GameCube on its first day which already didn't Bast Stellar sales games also perform poorly and Jet Set Radio Future supposed to be the flagship for the console in Japan only sells 15,000 units microscopic we're far from the wildly successful launch of the PlayStation 2 2 years prior we'll dive into these details more in the Xbox video documentary Sony will further solidify its dominance there with a partnership with Sega giving priority to its console in the coming months featuring plenty of new games as usual the following month the Xbox is released in Europe at the exorbitant price of €480 the equivalent of $580 us with games costing €70 each the equivalent of $84 the scenario repeats itself the start is challenging and very disappointing the PlayStation brand is so dominant in Europe and even more so in key European countries like France and UK that there's hardly any real competition additionally soccer games are thriving in Europe and are almost exclusively available on Playstation too the console is everywhere and the competition doesn't stand a chance well that's what Sony would like but then the GameCube arrives while Nintendo's promotional campaign in Europe is weak oddly enough there is high anticipation to maintain its dominance Sony decides to drop the price of its console to $199 worldwide causing sales to Surge once again however this doesn't impact Europe as the price Remains the Same given the excellent sales and the competition being crushed without the need for this effort Microsoft tries to compete by also lowering its console to €299 but it's already too late the damage is done in this context the GameCube arrives in Europe with 21 available games but still no sign of Mario however this doesn't prevent the console from making a good start with 400,000 GameCubes sold and more importantly an average of 2.3 games purchased with each console which is quite impressive but not as much as expected as not all the stock was sold indicating that Nintendo anticipated better sales given that the number of consoles sent to retailers is typically the expected sales volume it's still very encouraging meanwhile Microsoft does something quite bold it lowers the price of its console in the US to $199 just like the PS2 even though the production cost of the console is much higher Microsoft abandons Japan and Europe focusing all its efforts on the United States the world's largest market while Nintendo aims to challenge the ps2's dominance in Europe and Japan and here Sony does something somewhat questionable feeling Invincible but selling its consoles at a loss Sony finds that players aren't buying enough games and they would like to recoup some money so they turned to the most sold accessory of the console the memory card and decid decide not to renew the licenses of the companies that manufacture them leaving only their own on the market and thus securing the entire Market however this strategy completely backfires because the demand is so high that they can't produce enough and for months PS2 memory cards become completely unavailable this situation is what was referred to as the great memory card famine hundreds of thousands of players find themselves in a situation reminiscent of the 1980s having to play games like fin fin Fantasy 10 without a memory card and leaving the console on for days on end on to e302 and this E3 is utterly crazy first Microsoft announces an incredible flood of games for its console Psychonauts Dead or Alive Panzer draon project ego Steel Battalion dox 2 Splinter Cell 2 and the list goes on Microsoft doesn't get discouraged despite the poor numbers for its console but Nintendo's E3 is even more insane with lots of games announced for the Game Boy Advance and plenty for the GameCube Star Fox Adventures the exceptional Metroid Prime Mario Party 4 and most notably the successor to the Legendary [Music] [Music] game then mamoto takes the stage and shows journalists Why Super Mario Sunshine is fantastic with the use of different nozzles and water with flood then moves on to the presentation of Wind Waker which leaves the journalists in awe and then something quite crazy happens not only do they showcase four sword Adventures a Zelda game for four players but Sega also takes the stage and announces a new game F0 GX developed in Partnership between Nintendo and Sega something completely crazy given the Rivalry between the two companies in the 9s and Sony's conference well it's one of the most boring they boast about being the best about the PlayStation 2 selling incredibly well Etc which is not the best especially when the competition is making a strong comeback at this point everyone starts thinking that it's possible for Nintendo and Microsoft to gain ground on Sony in some regions especially Nintendo after the announcements of Mario Zelda and the upcoming release of Metroid and then Super Mario Sunshine releases just after the Expo and the hype dissipates as quickly as it built up the game is good but critics and players aren't as enthused it's challenging to get the hang of especially following the excellent Super Mario 64 Additionally the artistic direction of the new Zelda also disappoints many as they find it too childish compared to the Beloved look of Ocarina of Time for the first time in history Mario and Zelda franchises fall short of expectations leaving Sony with a clear field as Nintendo seemed to be the only one capable of posing a real challenge to Sony in Europe and Japan even more than the previous year 2002 is a year filled with major games for the PlayStation 2 new franchises like Kingdom Hearts Ratchet and Clank as well as the return of big series such as Medal of Honor proevolution soccer Mortal Combat Need for Speed Tekken Gran Turismo Hitman and games with well-known licenses like Dragon Ball Z buai James bond007 Harry Potter it's an incredible Avalanche of games and on October 27th 2002 a game called Grand Theft Auto Vice City lands on the console it's an incredible success that significantly boost console sales which didn't even need it besides being excellent it gives a somewhat rebellious image to Sony attracting a lot of teenagers and young adults just when Sony was losing momentum and struggling to renew Itself by City arrives as the Catalyst that propels the console to another dimmension and nothing can compete during Christmas the PlayStation 2 flies off the shelves leaving the other two consoles in the rear viiew mirror its Total Domination in 2002 with Sony leading the way and Microsoft and Nintendo trailing far behind however they haven't said their last words yet Nintendo plans a big year with Mario Kart Double Dash Zelda Wind Waker F0 GX all coupled with a console price drop Microsoft has just acquired rare an extremely prestigious studio and has launched Xbox Live promising that Grand Theft Auto will soon arrive on its console the year 2003 promises to be a crazy one that will leave a mark on the world of video [Music] games the year 2003 begins and the holiday sales figures are out unbelievably Nintendo managed to over Shadow Sony in Japan throughout the Christmas season thanks in large part to Mario party and the Legend of Zelda The Wind Waker which significantly boosted console sales for the first time in Japan despite its considerable lead the PlayStation 2 is losing momentum Furthermore with the upcoming releases of Mario Kart Double Dash and FZ GX later in the year console sales are expected to rise even further this marks the second episode of The Price War Nintendo introduces the Platinum Series somewhat reminiscent of the Player's Choice on the Nintendo 64 a selection of games at half the price Sony follows suit with its essential the best or Platinum Series depending on the region of the world most importantly after this slowdown in Japan they lower the console price twice in the same year they are determined not to seed ground to Nintendo however this strategy doesn't quite work as sales stabilize only temporarily and begin to decline again fortunately for Sony right on Q once again Final Fantasy 102 is released and Dragon Quest 8 is announced exclusively for the PS2 suddenly console sells Skyrocket in Japan at the same time square and Enix merge into a single entity Square Enix which decides to expand its game releases Beyond Sony consoles Microsoft throws its final efforts into the battle launching Xbox live worldwide and initiating a massive marketing campaign focused on this new service in the United States and even in Europe they introduce numerous compatible games and secure significant solo exclusives like the inaugural Fable similarly Nintendo releases the Wind Waker worldwide receiving an extraordinary critical Acclaim with perfect scores in numerous magazines and websites a rarity at the time but players are still complaining about the artistic direction of the game too childish in their eyes they also unveil the Game Boy Player an affordable accessory enabling Gamers to play Game Boy and Game Boy advanced games on their GameCube in better quality it truly seems like Nintendo is making a strong comeback meanwhile Microsoft announces even more substantial Investments while Sony surprisingly doesn't do much and remain surprisingly silent and it's in this context that we reach E3 2003 one of the worst e3s in history on Microsoft side the emphasis is once again on online gaming but with ads everywhere for online play it's clear there's no need to dedicate half the presentation to it the other half is filled with interludes and trailers for secondary games fortunately Halo 2 even though criticized for its overly scripted sequences by journalists who got to try it manages to elevate the overall presentation on Nintendo's front they announced that Mario Kart Double Dash won't support online play a massive disappointment for gamers most significantly satoru iata revealed feels that Nintendo is already working on its next console and Promises not to lag behind anymore acknowledging their history of releasing consoles later than the competition the GameCube is no longer at the Forefront of Nintendo's plans as they gear up for what's next similarly Microsoft discusses its next console Sony on the other hand boldly declares the war is over the PlayStation 2 has one surprisingly Sony doesn't even bother to support the PlayStation 2 in the presentation Focus ing instead on the PlayStation Portable a new handheld console touted as the biggest revolution in the gaming world and the 21st century Walkman reflecting the tone of this E3 the year 2003 is a remarkably quiet one for home consoles just barely two years into the console war the PlayStation 2 has surged so far ahead that it's beyond anyone's reach even Microsoft's billions can't bridge the gap Sony is Untouchable the manufacturers are already gearing up for what's next it's incredible and for the first time in history the dominance is so extraordinary that everyone's mindset has already shifted away from the current generation even though the war has only been in full swing for about a year and a half the PlayStation 2 doesn't even need Sony's active support to shine it can confidently pave the way for what comes next and it will shine thanks to another of its features the USB ports included on the front Sony releases I toy play a game sold with an accessory a webcam that enables somewhat rudimentary motion recognition and plugs into the USB port well the issue is that while it's fun to explore its practical use is a bit ridiculous the Motions aren't always accurately recognized the game and accessory are sold at a high price and the mini games are too lightweight leading to boredom fairly quickly even if the idea is rather intriguing but that's not the only accessory singstar is set to launch with a microphone that also connects to the USB port just a few weeks before the release of Mario Party 6 which will also utilize a microphone on Nintendo's console but generate less buzz and what's incredible is that in reality Sony doesn't have to do much to support its console anymore the sales are so strong that all third-party Publishers prioritize releasing games on it due to its massive player base even though 2003 is a relatively weak year compared to the previous one titles like Need for Speed underground Pro Evolution Soccer 3 Ratchet and Clank going Commando The Simpsons hidden run Dragon Ball Z budai 2 and Naruto Ultimate Ninja keep the platform alive even without much additional support at the end of the year Mario Kart Double Dash arrives and just like Mario Sunshine it doesn't Garner unanimous a claim like its predecessors this time it's Crystal Clear the PlayStation 2 stands alone in its realm and will remain so until the end even if the console sales decline a bit in in 2003 it's because Sony is too busy preparing for the launch of its PSP and the year 2004 is also a transitional year primarily because Nintendo has just announced a new handheld console with two screens and a touchscreen grabbing quite a bit of attention Sony will have to struggle to establish the existence of its PlayStation Portable consequently 2004 resembles the previous year a price drop but ultimately Sony doesn't have to do much more to support its console however towards the end of the year Sony announces and releases a new model of its console called the PS2 or Playstation 2 slim here Sony does what it knows best biting off more than it can chew and undermining itself they decide to stop producing the old models of the PlayStation 2 and exclusively manufacture the more profitable slim versions however the new model faces design and Manufacturing issues resulting in a shortage of consoles to meet the demand for no apparent reason initially a PlayStation 2 scarcity ensues in response Sony lowers the factory testing standards to produce consoles more quickly and meet the demand this inevitably leads to thousands of malfunctions prompting a legal action that forces Sony to compensate all individuals who purchased a defective PlayStation 2 and the demand was exceptionally high due to a single game that would create a new storm that game is Grand Theft Auto San Andreas San Andreas is an outstanding game larger more beautiful crazier and more polished than its predecessors it's a massive achievement for the GTA series delivering a colossal impact and achieving astonishing success in a very short time it explodes the sales of both the console and its new model pushing them into shortage the San Andreas earthquake is utterly astounding to the extent that it would eventually become the bestselling game of its generation despite not being popular in Japan at the end of of 2004 Sony releases the PlayStation Portable in Japan and gradually the focus shifts towards promoting this portable console and the upcoming PlayStation 3 the Year 2005 is significant because it marks the time when Microsoft turns the page announcing and presenting its new console the Xbox 360 which is already ready and set to be released by the end of the year meanwhile Sony still in the process of Designing the PlayStation 3 has to rely once again on its PlayStation 2 which Bears the heavy responsibility of buying Sony time for its next console and here we go again massive promotional campaigns rolled out with a significant emphasis on games fortunately for Sony the Year 2005 is a completely insane year in terms of games for its console developers have finally mastered the complex architecture of the console and are using the emotion engine in the right way resulting in visually stunning games for their time additionally the year brings forth well-developed games series such as the excellent Kingdom Hearts 2 Need For Speed Most Wanted Devil May Cry 3 the extraordinary Resident Evil 4 proevolution soccer 5 the highly anticipated Dragon Quest 8 the visually stunning Grand Turismo 4 Tekken 5 and newcomers like the first installment of the Yakuza series the debut of God of War Shadow of the Colossus and the introduction of Guitar Hero with its guitar-shaped accessory once again it's a wild year for the place Station 2 hosting an incredible number of outstanding games and then the Year 2006 Sony shifts the promotion around the PlayStation 3 which will be explored in detail in its dedicated documentary however the PlayStation 3's disappointing debut and high price tag lead to the continued soaring of PlayStation 2 sales throughout the PlayStation 3 era the PlayStation 2 continues to sell remarkably well because the PS3 is expensive and fails to meet expectations the huge player base convinces developers to keep creating games for it including titles like Final Fantasy X proevolution Soccer Dragon Ball Z Budokai ten kaii God of War II and many more games keep arriving for years even after the release of the PlayStation 3 and the PlayStation 2 is also released in some Latin American countries or African countries at a low price poorer countries that in Sony's eyes could not afford the console before this huge price drop over the years the PlayStation 2 refuses to fade away and continues production until 2012 an incredible 12 years after its initial release its longevity in an era where Technologies evolve rapidly demonstrates how exceptional this console is and the impact it had the failure of the PlayStation 3 certainly contributes to its extended success especially since most PS3 models were not Backward Compatible it's remarkable that over a third of its sales occurred after the PlayStation 3's release usually consoles tend to decline rapidly when their successor enters the market for example with the PlayStation 1 only 177% of its sales occurred after the release of the PlayStation 2 the PlayStation 2 is a console that completely revolutionized the world of video games from its highly complex development under the leadership of Ken karagi to the brilliant idea of orchestrating scarcity as a selling point leading to its explosion in 2001 the console had everything it needed to dominate its competitors after a challenging start saved by its integrated DVD player developers gradually adapted to its intricate architecture the result was several completely wild Years of Gaming with major releases every month a truly astonishing feat the PlayStation 2 is one of the consoles that profoundly changed the landscape of the gaming World it introduced the notion that gaming consoles should do more than just play games they should serve as comprehensive entertainment tools with various functions it brought the concept of orchestrated scarcity as a selling strategy established retro compatibility as a norm even though it had been done before and played a significant role in sega's demise prompting Nintendo to completely change its strategy with the Nintendo Wii after that moreover it introduced USB ports making it easier to connect various accessories compared to the proprietary ports Nintendo had used previously PlayStation 2 stands as a truly unique console in the history of video games no other console had so thoroughly crushed the competition and dominated the market since the NES in the 1980s it is also the console that cemented video games in the global cultural landscape thanks to its penetration into households with its integrated DVD player all of this is attributed to the vision of karagi whose eccentric controversial personality did not overshadow the fact that he foresaw what was going to happen he understood that the Consol architecture was complex and that developers would face challenges but the inclusion of a DVD player would allow the console to establish itself subsequently games would arrive when the console was already ubiquitous leaving the competition with no viable Solutions despite the fact that his vision for offering film music and image services with the console was never fully implemented and some of his promises remained unfulfilled in 2004 Time magazine named karagi one of The 100 most influential people on the planet a remarkable acknowledgement for someone from the gaming world the PlayStation 2 is a console that will never be replicated an exceptionally versatile platform that achieved unprecedented success I'll be creating a documentary on the GameCube and the Xbox and you'll see that their stories are quite different don't hesitate to subscribe to not miss the upcoming videos I genuinely hope you enjoyed this video I poured my heart into it honestly I love creating these in-depth videos that delve into the crazy history of gaming consoles even though each time it's a completely wild challenge given how dense and complex these videos are to produce sincerely thank you for your support likes comments subscriptions and shares it always brings me great joy to see that you enjoy my videos take care
