Summary

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.

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 ofthe industry’s greatest gameswere launched during this exciting, revolutionary time.

mario floats through the sky in galaxy

1The 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, untappedaudience of casual gamersand achieved remarkable success as a result. Motion controls became a standard for the industry moving forward, influencing future Nintendo consoles for the foreseeable future.

sonic, knuckles and amy standing in front of a pyramid in sonic adventure 2

2Dreamcast Failure Leads To Sega Exiting The Hardware Business

Sega Abandons Hardware To Become A Third-Party Developer

Despite a strong launch line-up andan amazing software librarythat included the likes ofSonic Adventure,Shenmue,Jet Set Radio, andSkies 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.

the original xbox logo

3Microsoft 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.

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 ofThe Elder Scrolls 3: MorrowindandStar Wars: Knights of the Old Republic, as well asJet 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.

two cars driving towards the camera in gt3 intro

4Sony 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 ofArmored Core 2,Smuggler’s Run, andSSX, 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 thatboasted titles likeMetal Gear Solid 3,Grand Theft Auto 3, and more, the PS2 was easily one of the most important hardware launches of the decade.

first steam client from 2003

5Valve Launches Steam

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 Steamwas Valve’s ownHalf-Life 2, which would become one of the best games of the decade.

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.

the heroes of dq in a collage image with cloud from ff7

6Former 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, asFinal FantasyandDragon Questsought to maintain dominance in a market that wasbeginning to become even bigger. JRPGs dominated the 90s and were still ravenously popular at the time.

But after the failure ofFinal Fantasy: The Spirits Withinand an uncertain financial future, Square looked to merge with Enix and in 2003 the impossible happened. Cloud and the heroes ofFinal Fantasywere no longer enemies of Erdrick fromDragon Quest. Instead, it led to the creation of a company that became one of the modern era’s most consistent and popular RPG developers.

claude from gta3 firing a weapon

7Grand 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. AlthoughGrand Theft Autohad 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.

It sparked a renewed interest in violence in video games, while later titles such asManhunt,Bully, andPostal 2continued 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 itsrole in 3D open-world design.