The encyclopedia · Software & IT · Product decision · 1993–1996
3DO: the $700 console that sold 2 million against PlayStation's 100 million
The 3DO Company launched a $699.99 console in 1993 backed by Time hype — and sold 2 million units against Sony's 100 million.
The 3DO Company · 1993-10-04
What happened
The 3DO Interactive Multiplayer was a 32-bit CD-ROM home console launched on October 4, 1993, at $699.99. It was founded by Trip Hawkins, who had left Electronic Arts to start The 3DO Company. 3DO was designed as a licensing standard — Panasonic, Goldstar (LG), and Sanyo manufactured the hardware. Time magazine named it Product of the Year for 1993.
The console failed for several compounding reasons. At $699.99 — nearly $1,500 in 2025 dollars — it was the most expensive console on the market while the Super Nintendo and Sega Genesis cost $150. 3DO's licensing model prohibited manufacturers from selling hardware at a loss, a standard console-market practice where companies subsidise hardware with software royalties. The launch lineup included only one game. The Sony PlayStation and Sega Saturn arrived in 1994–1995 with lower prices and stronger libraries.
Total 3DO sales reached about 2 million units worldwide. The Sony PlayStation sold over 100 million. The 3DO Company exited hardware in 1996, sold its technology, and became a game publisher. It filed for bankruptcy in 2003. The console is remembered as a cautionary tale about pricing and market timing in the video game industry.
Why it happened
- At $699.99, the 3DO cost over four times the competing consoles (SNES was $150). The licensing model prevented manufacturers from subsidising the price, so it never dropped fast enough to compete.
- The launch lineup included only one game. Sony and Sega secured strong developer support for the PlayStation and Saturn; 3DO's licensing fees discouraged third-party developers.
- Designing 3DO as a licensed standard with multiple manufacturers fragmented marketing. No single company championed the brand, and consumers were confused about who made the console.
- The PlayStation launched in 1994 at $299 and the Saturn at $399 — both cheaper, both with better games. 3DO had an 18-month head start and squandered it on high pricing and a weak library.
The lesson
A licensing model bars manufacturers from subsidising prices, meaning your console cannot compete. 3DO proved specs and awards cannot save a product at five times the competition price with one game.
Aftermath
The 3DO Company exited the hardware business in 1996 and sold its technology to Panasonic and Samsung. It became a multi-platform game publisher, releasing titles for PlayStation and PC. The company filed for Chapter 11 bankruptcy in May 2003 and was liquidated, with its game catalog sold to other publishers. Founder Trip Hawkins founded Digital Chocolate, a mobile game company. The 3DO is frequently cited alongside the Philips CD-i and Atari Jaguar as one of the biggest console failures in gaming history.
Sources
- Wikipedia — 3DO Interactive Multiplayer (32-bit CD-ROM console; launched October 1993; $699.99; Time Product of Year; Panasonic/Goldstar/Sanyo; 2M sold; PlayStation 100M; Trip Hawkins; bankruptcy 2003)
- The New York Times
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