Matsushita has launched its GameCube-based home entertainment system, the Q.

Japanese electronics giant Matsushita has finally launched the Q – its own version of Nintendo’s GameCube, which also allows CD, DVD and VCD playback. First shown at the E3 show in 2001, it is now on sale in Japan for $300.

Back in 1999, Nintendo realized that it needed a cheaper storage medium than traditional cartridges if its new GameCube console was to compete with Sony’s Playstation – so it signed a deal with Matsushita to develop a proprietary three inch DVD disk and exchange related technology.

The Q fits both companies’ interests. Nintendo has often been accused of focusing too much on the children’s market, while ignoring the 18-25 year old market that Sony has cashed in on. The Q offers next generation gaming with a design to appeal to the older market. For Matsushita, it is the perfect entry-level home entertainment device, introducing young consumers to its range of products.

Nintendo will also benefit from the extra games software sales that Q sales will generate. Admittedly, it will gain less from sales of Q units than from GameCube sales, but at least the alliance shows that a company without the muscle of Sony or Microsoft can expand its market beyond its traditional audience.

Matsushita is taking full advantage of the 1999 deal: the Q may be the first in a range of GameCube-based products. In particular, the Matsushita/Nintendo deal also included options concerning digital network related products and services. When the GameCube eventually explores an online or multiplayer presence, it may well be hand-in-hand with Matsushita.

There are risks attached to the multi-device strategy. If there were too many such devices on the market, consumers would be confused by the mixed messages and branding. Q users are also likely to buy much less software than traditional GameCube owners, curtailing the potential of extending the GameCube user base.

However, the technology-focused Japanese market is sure to enjoy this small, fashionable and functional device from two much-loved companies.