Who’s winning console wars?

The modern video game console market is dominated by three companies: Sony, Microsoft and Nintendo. Sony’s current-generation consoles include the handheld PS Vita and the PlayStation 4. Microsoft’s home console is the Xbox One, and Nintendo sells the handheld 3DS, the Wii U home console and a new hybrid handheld and home console called the Switch.

The longevity of Nintendo’s 6year-old 3DS is impressive, since smartphone games were expected to render handheld consoles obsolete. The PS4 and Xbox One offer high-end games, but Sony is differentiating its console with the new PlayStation VR headset. Sony launched the PS4 Pro last autumn, and Microsoft plans to launch a more powerful Xbox One, codenamed Project Scorpio, later this year.

The video gaming market likely will be fragmented this year, with casual gamers favoring the Switch and hardcore gamers focusing on 4K and VR gaming with Sony’s and Microsoft’s updated consoles. Investors will be watching carefully to see if Nintendo’s attempt to merge the handheld and home console markets helps it reinvent the market it revolutionized three decades ago.