BUT- think about this, The compete for a huge pile of money that PS360 don't. The Wii competes for the casual $, this is against movies, toys, ect.
For a gamer they do compete, like I stated in the last sentance of my last post. They compete for gamers $. What I believe confuses most people is the fact the Wii competes to for millions of consumers who would not even think of getting a PS360... unless it is for Blu-ray. So therefore the Wii does not really compete.
HOWEVER, when it comes to HW I do not believe that the Wii compete with regards to core gamers. Most core gamers on a limited budget are going to get an HD console regardless. So if the Wii did not exist I do not believe the sales of the PS360 would look THAT different.
End of 2009 Predictions (Set, January 1st 2009)
Wii- 72 million 3rd Year Peak, better slate of releases
360- 37 million Should trend down slightly after 3rd year peak
PS3- 29 million Sales should pick up next year, 3rd year peak and price cut