Nintendo's Wii console will outship and outsell the Xbox 360 and the PlayStation 3 throughout 2007 and 2008, according to market research firm IDC.
But although the Xbox 360 has enjoyed a full year's head start over rivals, and the Wii is likely to perform well over the next two years, the company believes that this home console cycle will see no clear-cut dominant hardware.
"IDC believes hardware shipments of Nintendo's Wii will capture a little more than a third of the worldwide market by 2008, rising slightly above Sony's PS3 and Microsoft's Xbox 360," reported the firm.
"Nintendo is the only one of the three manufacturers working to grow its accessible market for its hardware and software by broadening its audience beyond the traditional market," observed the company.
IDC believes that Nintendo will be responsible for capturing consumers new to gaming, while Sony and Microsoft continue the obsession with higher specifications and digital home entertainment packages.
Billy Pidgeon, program manager at IDC added: "With the Wii, Nintendo is abdicating the specification war, leaving Sony and Microsoft to slug it out between themselves for the hardcore market."
"We believe concerted efforts to broaden the appeal of videogames beyond the traditional enthusiast base will deepen the industry's penetration."
"This is good news for an industry that seemed to be receding last year due to over-saturation of the core base," he added.