Next-Gen Gaming Cheat Sheet

Can't keep your PS3s and Wiis straight? We cut through the game-battle babble to give you all you need to know before buying

by Kenji Hall

Trojan horses. Blu-ray. First-person shooters. The way video game industry executives talk about next-generation living-room consoles, you'd think they were plotting a military invasion. You'd make combat references, too, if you had as much on the line as Sony (SNE), Nintendo (NTDOY), and Microsoft (MSFT). Five years of research and billions of dollars in spending go into each generation of gaming machines.

All three game makers are hoping for a big payoff this holiday season, as millions of hardcore gamers await their first crack at consoles from Sony and Nintendo, while others opt for Microsoft's Xbox360, which has already been out for a year.

For many the trick will be finding a state-of-the-art console in time for the holidays. For the uninitiated who plan to give a gaming machine as a gift, the challenge will be sifting through all the tech babble. Here's a primer on picking the right gaming console—and knowing where to find it.

When will all three next-generation gaming consoles be available and how much will they cost?

Microsoft's $399 Xbox 360 has been in stores for about a year. Sony will release two versions of its PlayStation 3, a $499 entry-level and $599 higher-end machine, in North America on Nov. 17. Two days later, Nintendo will launch its $250 Wii.

What's the main difference between the three consoles?

At the most basic level, the consoles can be divided into three categories. The Xbox 360's online gaming service, called Xbox Live, is the most advanced, with a full lineup of game downloads and multiplayer options. The PS3 comes with the ultrafast Cell microprocessor and a high-definition Blu-ray DVD player, which will help programmers improve on 3D images and add artificial intelligence so games will look and feel more realistic. Sony recently has been beefing up its online gaming platform, PlayStation Network, to compete with Microsoft's service.

The Wii packs the least power of the three machines. But Nintendo says the Wii's lower-tech specs will make it less energy-hungry. And while you won't be able to play the visually vibrant games of rivals, its remote controller has cutting-edge motion and pointing sensors that allow it to be swung like a golf club or aimed like a gun. Nintendo is targeting people who might not normally play video games and want a user-friendly system.

Will the consoles let you do more than just play games?

Yes. In addition to playing games, all three machines will let you tap into the Internet over a high-speed connection, send instant-messages and connect with others using the same system, and store and view digital photos. Sony and Microsoft are also billing their machines as entertainment systems for the living room. One bonus: You'll be able to play high-definition DVDs or Web downloads. The PS3 includes the Blu-ray disc player, while Xbox 360 owners can buy a separate HD DVD player. (The Wii initially will only play optical discs for games, though the company says a standard DVD player is planned for a later version.) The Wii lets you create avatars—digital look-alikes of real people—that can make cameo appearances in friends' machines and some games.

How easily will the consoles tap into other devices around the home?

It's not clear yet. But both Sony and Microsoft are clearly hoping their machines will act as a hub for the digital home. Sony wants the PS3 to oust the PC as consumers' main access point to the Net. It's also hoping the PS3 will become a Trojan Horse of sorts—a channel through which Sony can also sell you movies, music, and all sorts of other digital content. The company is also betting you'll want to upgrade to a high-definition TV to make the most of the Blu-ray DVD player.