Video game market research and strategic analysis company DFC Intelligence recently posted an intriguing article about the PlayStation 3, discussing how the price cut may finally allow Sony's platform to shine in the marketplace. But of particular interest is that the article suggests that the reason that the PlayStation 3 has managed to survive in the market for as long as it has is because of the Wii.

Following are some relevant excerpts from the article:

While Sony's strategy was to crush Microsoft, and ignore what it considered to be an out-of-the-race Nintendo, consumers had other ideas. The lowest priced system, the Nintendo Wii far outsold the others. In North America, the PlayStation 3 was soundly outsold by the Xbox 360. Even in Europe, a market normally dominated by Sony, the Xbox 360 slightly outsold the PlayStation 3. The past few years, Sony's very existence in the game business seemed to be in peril.

However, DFC has also argued that the video game console market is a marathon, not a sprint. Keeping a game platform around for the long term is an ongoing and difficult task. The main danger Sony faced was that the Xbox 360 would become embedded as the system of choice. Instead consumers flocked to the Nintendo Wii. The Xbox 360 had solid sales, but they have not been enough to give Microsoft anywhere near a breakout market position. In many respects, Sony was saved by the success of the Wii.

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The sales performance of the PlayStation 3 has been less than stellar, but Sony has survived. The Xbox 360 was unable to take advantage of Sony's struggles to build the type of large lead needed to maintain a long-term advantage. The PS3 survived the onslaught of AAA Xbox 360 titles that hit the market from late 2006 through 2007. Halo 3 had great sales, but it did very little to enhance the Xbox 360's overall position in the marketplace. The Xbox 360 is the system of choice for fans of high-action first-person shooter (FPS) games. However, for the 80%-plus of game consumers that DO NOT play FPS games, the Xbox 360 is not the system of choice.

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For holiday 2009, both Microsoft and Nintendo have first-party titles that primarily target the converted. These are extensions to established franchises like Halo, Wii Fit and Super Mario. There is really nothing new for these systems that would attract users that have not already purchased the system.

In contrast, Sony has some relatively new franchises that are either 1) not very familiar to non-PlayStation 3 owners or 2) upgrades to existing PlayStation 2 franchises. In the former category is LittleBigPlanet and Uncharted 2. These two products are stellar new franchises that have not gained their full acceptance due to the limited installed base of the PlayStation 3. With new releases in these series for fall 2009, they should get a fresh look from consumers.

The full article can be viewed here, as DFC looks back upon the trials which Sony has struggled to overcome to reach its current position in the marketplace.