As the world entered a new millennia, new consoles were being released, pushing game consoles into the next generation. The first arrival of the next generation consoles was the Playstation 2. The Playstation 2 arrived with DVD playback and full backwards compatibility with the Playstation 1. This in itself, helped to driver the sales of the consoles as it had the huge back lot of previous generation games available. In total, the Playstation 2 became the best selling games console of all time surpassing 150 million units as of 2011 with over 10,800 games in its collection.
Soon after the arrival of the PS2, the Xbox and GameCube arrived in 2001. These two consoles were the individual companies attempt at toppling Sony's success they saw with the Playstation 1 and there arrival of the new Playstation 2. Despite never achieving the sales of the PS2, they did however, bring new revolutionary features to gaming. The Xbox for example arrived with a dedicated online service "Xbox Live" which defined the way console games were to be played and developed. The GameCube however, was more ill fortuned thaN the other two consoles. The reason for this was the lack of third party support, a rather lacking online service and Nintendo's focus on the family genre of games and because of this, came last in that generation of consoles. despite this, Nintendo released the GameBoy Advance which saw incredible success and went on to sell over 80 million units including the GameBoy SP which was released in 2004. Subsequently because of this, Sony introduced its handheld to the market in the form of the PSP. with its LCD widescreen, a collection of top games and full media capabilities, the PSP seemed a guaranteed success, however, the portable has never matched the unrivalled success of the Nintendo handhelds.
In 2005 the seventh generation of games consoles arrived with the Xbox 360 and its fully overhauled Xbox Live service. 2006 saw the PS3 arrive along with Nintendo's new and rather different console in the form of the Nintendo Wii. This console alone has transformed the way the games industry has been functioning with a turn to social gaming. despite this, and the highest sales of this generation, the Wii console is severely outdated and is slowing significantly in sales in recent months. The PS3 arrived with a disastrous launch which crippled Sony and lost them billions. This was because of the lack of quality first party games and its high cost "£425" at the UK march 23rd Launch. despite this, Sony has been able to transform the image of the ps3 by introducing the ps3 slim in 2009 along with some of the highest quality first party games available.
The seventh generation of games consoles has seen a major change for the games industry as a hole. the advent of social games has in a way, changed the face of the games industry's public image to the masses which of course is a very positive event. However, social gaming success has led to new unconventional platforms such as apples iPod Touch/iPhones and iPad which now has a huge collection of games and users. This along with the hugely popular Nintendo Wii, created enormous strain on the games industry's usual approach of developing games for a rather similar audience. this led to a rather dangerous period of high profile studios creating cheap, quickly made games for the Wii in order to earn a quick a profit. this damaged the quality of games and led to an uncertain period for the Xbox 360 and PS3. In order for Sony and Microsoft to cash in on the social gaming success, both company's developed there own products to match the Wii. This led to the Xbox Kinect and Playstation Move. Both have seen great success with the Kinect selling over 8 million units.
Although the seventh generation of consoles has seen great change and a huge rise in development costs, there is already news and info about the 8th generation of consoles on the horizon such as tech demos of proposed next generation graphics and job listings for the development of Microsoft consoles.