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... with 3 games before a profit is made. This larger production cost for Microsoft is due to superior technology and innovation. Sony Playstation has been the clear market leader in consoles since 1996, was replaced in November 2000 by Playstation 2 (PS2). In 2001 Nintendo's latest console the GameCube was launched a full 18 months after the PS2, the other console Microsoft's X-Box was launched at the same time as Nintendo's GameCube. These new generation of consoles have had an effect on the PC games market, with the home computer increasingly being used for other functions such as education, e-mail and the internet. The software sector is fairly fragmented across small, creative developers and publishers, with the outstanding corporate names Eidos PLC and Electronic Arts who design games for all three consoles. Introduction This report shows the current situation within the electronic gaming industry. This industry is a multi billion-dollar industry, which is ...