Nintendo has had a dream run this year with the Nintendo DS reaching sales figure of 20 million and Nintendo Wii reaching 3.5 million in such a short run. What's so extraordinary is the fact that both of them had a stiff competition from the SONY camp during launch and were touted as underdogs who overhauled the superior products from SONY and set great examples of how understanding the target audience is so important for success.
Nintendo DS had to take on the technologically superior PSP. PSP was leaps and jumps ahead of any handheld console till date. It had amazing games, wifi, ability to watch movies, Mp3s etc. A truly revolutionary handheld console, but SONY's arrogance and bad marketing saw it lose against the DS.
History repeated itself when the Nintendo Wii was released against the over hyped SONY PS3.
Wii has been unanimously voted the gadget of the year.
We will have to wait and see, if SONY can learn from it's mistakes and come back strongly in 2007.