It seems almost like a Christmas ritual: there is a next big thing in the world of video games almost every Christmas season. Last year saw some particularly interesting competition between new gaming hardware brought to market by Nintendo and its main competitor, Sony with its PlayStation series.

Sony’s PS3 is the high-end option between the two. It includes high-definition graphics, a hard drive, and a Blu-ray disc drive that offers great picture quality. The top-tier version with a 60GB hard drive also includes a hefty $600 retail price. Nintendo’s Wii (pronounced “we”) costs $250 and is built with Wi-Fi (but not Ethernet). Like the PS3, it has an SD card slot and can display photos, but its standard-definition DVD drive still can’t play movies (Nintendo and Sonic Solutions are working on that).

What Nintendo has that keeps you in the game is a unique gaming remote (the Wiimote) and a huge library of games. The PS3 enters the market with much more power and better graphics, but its gaming options are, at the moment, quite limited. Wii came to market with 62 games available; the PS3 opened with an inventory of 20 games.

The PC World review provides a clear description of the difference between the two systems. The PS3’s graphics are state-of-the-art 1080p HD, bringing a new level of quality to gamers. The Wii’s graphics capabilities are limited to standard definition, which is equivalent to the PS2, Sony’s latest (and very successful) video game console. However, the Wii has a gaming remote that uses motion-sensing technology, so that players’ movements with the remote are mimicked in-game. If you’re playing soccer, a pass requires a passing motion with the remote. A sword fight will require some aerial fencing as part of participating in the game.

The intuitive nature of the Wii Remote is its strength, along with the relatively cheap cost compared to the PS3. Wii also has an additional controller called the Nunchuk, which is a joystick-like device that works in conjunction with the motion-sensing remote.

The graphics and multiple uses (the PS3 includes a Blu-ray HD DVD player) are what make Sony’s product appealing. When both appeared on the market, the fact that each relied on separate characteristics to define its value created some interesting market competition.

The PS3 is the high powered (and high priced) option on the market. It can handle HD DVDs, play your digital photos, and connect to the Internet with a built-in browser. Its graphics are unparalleled and it comes with a decent game inventory that will at least get you started. It also has a new controller, one that uses a tilt function that is a token effort at motion sensitivity.

With the Wii, Nintendo decided to forgo the digital video wars and focus on a simple box with unique controls that’s designed for fun. The Wii can play GameCube games (Nintendo’s latest offering) and has been introduced with a new addition to the chart-topping Zelda series of games. While the Wii hasn’t done much to improve the visual quality of the gaming experience, it has added a substantial new dimension to the gaming process itself. It can also be used for web access.

Nintendo’s decision to target so-called “casual gamers” seems to have paid off in the short term. It’s too early to pick a long-term winner; both companies limited their issuance of Christmas products to ensure full sales and high demand for products. The PS3 definitely has a price breakout problem that will offset some gamers’ desire for the best graphics out there. On the other hand, it is a system with a lot of future. The future of the Wii is now, for the most part, and the product issues an intriguing invitation for a substantially new gaming experience, even if it happens using last year’s graphics.