As the games console market continues to make headline news around the world (often for the wrong reasons) it appears that there are two more heavy weights looking to join the fray. 

If the rumours are correct, it seems that both Nokia and Dell may move into the console market in 2007.  But why would Nokia and Dell be looking to enter this market, with the massive investment and enormous risks involved?

Those in touch with the games console market of late will have realised the move from traditional games consoles to a more multi media based device, something that offers online access, improved graphics, great music, interactive play and many more multi media services.  It seem to many market observers that the cross over from games console to mutli media services has prompted a defensive response from “competitors”.

The current games console market is dominated by Sony (Playstation), Microsoft (Xbox 360) and Nintendo (Wii) although they have all experienced numerous delays, cost over runs and negative press comment of late.  As they continue to fight for the number one spot, its seems that they may have left a gap for high profile new entrants with a loyal customer base and a clean image in the industry - Nokia and Dell fit the bill perfectly, well financed, loyal customer base and the marketing power to make an impression. 

While it has been inevitable that the mobile phone, internet and games console markets would converge at some stage, many had hoped for some form of partnership between complimentary industry leaders, such as e.g. Sony and Dell, Microsoft and Nokia - this has not happened.  We now have a situation where hundreds of millions of dollars are being ploughed into an industry with a track record for “black hole” investment requirements.  As seems highly probable (if the rumours are correct) we could see five major players in a market which enjoys high profile media coverage.

While the likes of Sony, Microsoft, Nintendo, Dell and Nokia are massive companies in their own right, there are very few leading industries in the world with five major leaders - it would not be unreasonable to expect at least two of the five to suffer from the expected increase in competition.

After leading the sector for so long, many are now starting to question the long term future of Sony’s presence in the market place.  Beset by much publicised delays, cost over spends and negative feedback, the once loyal Sony customer base seem to be wavering a little.  Whether they can pull back from the brink of the current financial crisis remains to be seen, but many are predicting that Sony’s stay at the top may soon be over, with Microsoft primed to move to number one in the US market.

Who else will be able to stay the pace remains to be seen, but with intense competition we should see a win win situation for the consumer.