@kn
I agree that within a market there can be niches where there is not competition. Your example of the car market is a great example of that.
It is only because of the market strategies of Sony and Microsoft that I am not willing to admit they are not competing.
The loss-leading strategy *requires* game sales to make a profit. It is more as if Shell gave away cars (just for a brand name, say Ferraris) for huge discounts that required a Shell-specific gasoline that was marked up a lot, and moved all Shell stations to only distribute that gasoline: If people decide to buy Hondas that are not discounted that only use gas that is sold at Amoco/BP, Shell loses. And while they are not in direct competition (possibly, I am not convinced on that argument) you cannot say they are not in competition.
However, I do see your point and I am fully willing to admit that the overlap between potential (exclusive) Wii buyers and potential (exclusive) PS3 buyers is small, at least right now. As the PS3 gets cheaper it will start to overlap more, though -- and when it gets larger they will certainly be in DIRECT competition.
Please, PLEASE do NOT feed the trolls.
fksumot tag: "Sheik had to become a man to be useful. Or less useful. Might depend if you're bi."
--Predictions--
1) WiiFit will outsell the pokemans.
Current Status: 2009.01.10 70k till PKMN Yellow (Passed: Emerald, Crystal, FR/LG)
