One more comment on the "not competing" debate - see PSP vs. DS. Nintendo and Sony both insisted for the longest time that the two handheld weren't competing, but I don't think anyone would argue that now. In fact DS literally "stole" sales from PSP last year when Sony had to lower sales projections and Nintendo cheekily raised its own sales projections by the same amount a couple of weeks later.
The fact is, if you're making a video game and I'm making a video game system, we're competing. Consumers have a finite amount of money to spend on video games, and third parties have a finite amount of resources to commit to game development. DS taking Dragon Quest IX from Sony goes to show that even the cheapest systems on the block are in competition with the most expensive ones.
Edit @Soriku: I'm not sure if you were talking about PS3 and Wii costing the same amount at the same time - I agree that will never happen, but I do think it's possible for PS3 to reach the $250 mark in its lifetime. Probably not until 2010 or 2011, though.
