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So I looked at Futureshop's flyer today (Canada's largest consumer electronics chain) and saw that they are selling an Xbox 360 60GB Pro package with 4 games (Lego Indiana Jones, Kung Fu Panda, Dark Sector, and Stranglehold) for the same price as a Wii with NHL2K9 (and Wii Sports by default).  Considering what exactly is inside the 360 it just goes to show what competition can do as far as pricing is concerned. 

If the Wii really did have competition (in the new demographics that the Wii has attracted) you can bet we would be seeing more of an effort on Nintendo's part in terms of both first and third parties and in prices.  If the Wii was struggling do you really believe all we'd be seeing for first party this Christmas would be basically Wii Music and Animal Crossing?  A big reason the Gamecube got one of its best games last generation (Resident Evil 4) was because of competition.  Nintendo now seems comfortable with sitting back and waiting for third parties to come to them (something that because of the fierce HD competition may not ever happen in ways that some Wii fans are hoping for).

Anyways some Wii fans can laugh at the competition between the HD consoles and their sales compared to sales of the Wii but I honestly feel that if things were somewhat closer then they would likely be playing even more of the first party games they like as well as seeing Nintendo work harder for third party games.