In a recent podcast, former PlayStation executive Shuhei Yoshida revealed that Sony viewed Xbox as its main competitor, particularly in markets outside Japan. He explained that while Xbox offers high-end consoles similar to PlayStation, Nintendo is seen as catering to a distinct audience. Yoshida indicated that this perception means Nintendo is often excluded from Sony's competitive analyses, even though Sony respects Nintendo's contributions to gaming. He noted that the competition in Japan differs, where Sony acknowledges Nintendo's significance due to Xbox's poor performance in that market.
PlayStation's perception of their competition is always Xbox. They see Microsoft being the competition because Xbox is very similar in terms of performance hardware.
Nintendo is family friendly; games for everyone; not about technology, more about having fun with friends and families... So inside Sony, even when they do a business analysis, Nintendo doesn't show up.
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