Without competition from the different game companies making good games wouldn't be needed. Each company has to find something to rise up from the others. Microsoft got cheaper consoles and a well rooted online network. Sony counters that with a powerful console at a higher price, but it can be used as a media center and a game system. Then of course you got the exclusives to attract the masses.
Competition is needed to make game companies keep wanting to impress you with new things and games, but it's also good for a price reduction. Let's say hat when Xbox GamCube and Playstation 2 were the giants. The Gamecube suffered from poor sales because most would rather have a PS2. Because of this both Microsoft and Nintendo lowered the price on the console and even put in some games with no extra charge.
Competition is needed to make game companies keep wanting to impress you with new things and games, but it's also good for a price reduction. Let's say hat when Xbox GamCube and Playstation 2 were the giants. The Gamecube suffered from poor sales because most would rather have a PS2. Because of this both Microsoft and Nintendo lowered the price on the console and even put in some games with no extra charge.