The PS3/360/Wii all are videogame consoles. They DO compete with each other but the METHODS of competition are different.

You first claim that "2 products that play music" don't compete, then you use "Microwave" sales as some sort of sarcastic counterpoint?  AAA rhetoric for the win.

Wii is a gaming console only, the others are gaming consoles with multimedia capabilities. The multimedia was btought to the others as an extra selling point and now that they are failing getting their costumers with that extra selling point the say that they are not competing with the Wii since it only play games.

If the PS3/360 were multimedia machines first and gaming second they wouldn´t compete direcly but since they are gaming consoles with added functionality they are competing and using the added functionality that was added to improve sales of the gaming machine as proof they are nopt competing is the ultimate proof that it´s fanboy talk.

@your comment about not being able to have a serious disscusion. Of course we can´t have a serious disscusion since you expect every one to agree with you even when you are dead wrong wich is another mark of fanboy talk.

yes, the are competing, because:

- they all play games :P
- the audience is the same, teen-males on both system, core games on both systems
- all released at same time
- all try to attract casuals, Microsoft with the "you are in the movie" thing and Arcade version of Xbox360 and so on, and Ps3 with "blu-ray player" and movies etc....

also, games are not the same, not just because of the graphics, but because of the controls as well....
if you think core games like SSBB, Mario Galaxy, Metroid, Zelda, Redsteel are selling, it means the audience is similar, so they are obviously competing!!

*the compete since people ask "which is the best" or "which shall i get for Christmas", including all 3, and in the end buying the Wii!

i pretty much agree with jlauro....

IPod wasn't in a new market. It simply destroyed the CD player market and expanded it. The Wii is doing the same in the gaming market but isn't totally destroying the market like the Ipod did.

*rolls eyes* ugh..

when i want to buy a console i look at which console will give me games that my pc doesnt give.
so yes the wii does compete with other consoles
and hand held does compete with consoles.. i dont have a "infinite money" cheat so i buy what ever i want.
if i wanna buy a game or a console i need to consider what i wanna get

This reminds me of one of Iwata's statements that they weren't only competing against other video game companies, but other entertainment like movies, books, music, etc.

A consumer has a limited budget on what they will spend on entertainment. Nintendo wants to compete for a piece of that consumer budget.

Your last sentence Bigjon is the answer.  The PS3 and the Wii compete for comsumer dollars, no matter what you might wnat to believe.  Joe Blow has 100$ to spend on video games.  That money can be spent on one of the various platforms.  both the PS3 and the Wii are part of that list so they are competing, end of story.

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.