Highlights
- The 2000s saw significant shifts in the gaming industry, including the entry of Microsoft into the console market and Sega's exit from hardware.
- Nintendo's Wii console captured a new audience with its innovative design and motion controls, becoming the best-selling console of its generation.
- Sony's PlayStation 2 became the best-selling console of all time, with a strong software library that included popular titles like Metal Gear Solid 3 and Grand Theft Auto 3.
While the previous decade was keenly focused on shifting from 2D to 3D and with an increased eye on content responsibility, the 2000s was a time of some pretty radical changes for the gaming industry. It saw new players such as Microsoft enter the console space, as well as major figures like Sega exit hardware. Nothing seemed safe.
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Everything about the 2000s in gaming felt like some sort of massive shift in both technology and business, as new distribution platforms such as Steam came into existence and many old rivalries went out the window. Meanwhile, new rivalries were being born and some of the industry's greatest games were launched during this exciting, revolutionary time.
1 The Wii Captures The World's Attention
Nintendo Cultivates A New Audience
Through two previous hardware iterations, Nintendo had faced stiffer competition than they were used to. Sony and Microsoft had altered the playing field, as Nintendo placed behind their competitors in prior console generations. As a result, Nintendo looked to do something different with their next console by appealing to the widest audience possible.
Thanks to its innovative design and perfect timing, the Wii launched in 2006 and became the best-selling console of the generation with 101 million units sold. It captured a new, untapped audience of casual gamers and achieved remarkable success as a result. Motion controls became a standard for the industry moving forward, influencing future Nintendo consoles for the foreseeable future.
2 Dreamcast Failure Leads To Sega Exiting The Hardware Business
Sega Abandons Hardware To Become A Third-Party Developer
Despite a strong launch line-up and an amazing software library that included the likes of Sonic Adventure, Shenmue, Jet Set Radio, and Skies of Arcadia, the Dreamcast was doomed almost from the start. Previous hardware disasters such as the Saturn and 32X put consumer trust in new Sega hardware at an all-time low, which led to them abandoning the Dreamcast and the console business altogether in 2001.
As one of the most iconic console giants of the 80s and 90s, Sega's departure from hardware was massive. It meant that any of Sega's beef with Nintendo and Sony was null and void, meaning that Sonic would find his way to rival platforms for the first time. Although it seemed dire, it allowed Sega to become one of the industry's most important software developers of the modern era.
3 Microsoft Enters Gaming With The Xbox
Tech Giant Becomes Industry Player With First Console
Although Microsoft was no stranger to the gaming industry, as Windows had become a firmly established home for PC games, their expansion into the home console market was one of the most fascinating moments of the 2000s. Competing directly with the PlayStation 2, it gave birth to one of the modern era's most heated rivalries that is still ongoing to this day.
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As a result of high developer interest in the machine, Microsoft was able to nab some pretty high-end console exclusives for the Xbox as well. Securing the likes of The Elder Scrolls 3: Morrowind and Star Wars: Knights of the Old Republic, as well as Jet Set Radio Future. Their partnership with Sega was strong, leading to some of the console's best titles and cementing Microsoft in the home console market.
4 Sony Launches The PS2 To Massive Success
Sony's Next Generation Successor Becomes The Best Selling Console Of All Time
Although they were seen as underdogs who didn't belong when they launched the PlayStation 1, Sony managed to defeat both Sega and Nintendo in the fifth-generation console war. So it was no surprise that a successor to the PS1 would happen, but little did anyone know just how much of a watershed moment it would become.
With an impressive launch line-up that featured the likes of Armored Core 2, Smuggler's Run, and SSX, the PlayStation 2 would become the most popular console of its generation. It also became the best-selling video game console of all time, with a staggering 155 million units sold. With a software library that boasted titles like Metal Gear Solid 3, Grand Theft Auto 3, and more, the PS2 was easily one of the most important hardware launches of the decade.
5 Valve Launches Steam
Valve Creates The Most Popular Online Marketplace
Although it doesn't seem possible thanks to the existence of the Epic Games Store and GOG, there was once a time when one major game launcher existed. Launched in 2003, Steam began as a way for Valve to update and release their games. Appropriately, the first game to be released on Steam was Valve's own Half-Life 2, which would become one of the best games of the decade.
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But as time went on and the value of having a place to launch games became apparent, more and more games not made by Valve made their way to Steam. As a result, Steam became the leading digital storefront and still maintains that to this day. It's become the home for many PC gamers to play games, buy games on sale, and connect with friends, all crucial elements of gaming as fans know it today.
6 Former Rivals Square And Enix Merge Into One
Square And Enix Put Rivalry To Rest In Historic Moment
As high profile as the console wars of the 80s and 90s were, one of the more forgotten rivalries was the one between Squaresoft and Enix. These two battled for JRPG supremacy during the previous decades, as Final Fantasy and Dragon Quest sought to maintain dominance in a market that was beginning to become even bigger. JRPGs dominated the 90s and were still ravenously popular at the time.
But after the failure of Final Fantasy: The Spirits Within and an uncertain financial future, Square looked to merge with Enix and in 2003 the impossible happened. Cloud and the heroes of Final Fantasy were no longer enemies of Erdrick from Dragon Quest. Instead, it led to the creation of a company that became one of the modern era's most consistent and popular RPG developers.
7 Grand Theft Auto 3 Reignites Controversy Around Violent Video Games
Rockstar Games Courts Controversy In First 3D Grant Theft Auto Game
Despite the formation of the ESRB in the 90s due to the excess of violent video games, that still didn't stop the industry from attracting the eye of the outside world. Although Grand Theft Auto had debuted as a top-down 2D title on previous consoles, the very first 3D iteration of the open-world crime thriller attracted quite a bit of attention.
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It sparked a renewed interest in violence in video games, while later titles such as Manhunt, Bully, and Postal 2 continued to stir up the heated debate. Although Rockstar tended to lean into the controversy and was often on the winning side of any legal action, it was an important game not only in the conversations it started but also for its role in 3D open-world design.
