Originally Posted by barrelbelly
They did it with Windows and DOS. With windows ultimately replacing DOS.
You're assuming a "beefed up"
model can't be made that is backward compatible to the XB360 slim. Certainly not the case. In fact, the true NexGen better be BC or they will pay for it big time IMO. Also, Nintendo just showed how simple it is to do just that. I don't see any "fracturing" of the market at all. It's just a "line extension".
Sega's problems were mostly cash flow and financial related. Not product. False equivalency.
I can see from your response that you really don't know what you're talking about. False equivalence is comparing a game console, which is by definition a closed hardware system with a single set of specs, with an operating system, which is software, the hardware running it is irrelevant.
Backwards compatibility doesn't keep the market from becoming fractured. You will still have two sets of hardware with two different standards to develop for. While developers could overcome this challenge, it takes away development time that could be used for more important things like bug fixes, QA and game balance. It also creates a quandary in the development process. How much time do you spend on effects or features that won't be available to everyone who buys the game? But if you don't push the best version of the hardware to its limits will you be outdone by a competitor?
The Wii U is a completely different console from the Wii. It's a next generation console for Nintendo, which ironically, puts them into the same generation as Microsoft and Sony. Maintaining peripheral support from one console to the other doesn't mean it's not a next gen console for them, just as not changing the basic shape of the Playstation controller from PS1 to PS2 to PS3 doesn't mean those consoles were simply "line extensions".
*sigh* Sega's cash flow and financial problems were directly related to poor product decisions and their poor transition from 16-bit to 32-bit. They spent a lot of money on bad hardware that didn't sell very well, on R&D, on manufacturing and on marketing (not to mention unsold cartridges in the case of the 32X). They spent a lot of money surprise launching the Saturn in the U.S., after spending a lot of money changing the design of the Saturn at the last minute to add a second processor so that they could do 3D (they originally envisioned the Saturn as the 2D console to end all 2D consoles and it was). They went from splitting the market with Nintendo 50/50 to having only a marginal market share and a mountain of debt to show for it. They went from being the biggest software house on the planet to being out of the console business because of the hole they dug with the Saturn transition. They are the object lesson in the console space of what NOT to do.