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Recently EDGE magazine (via CUBED) conducted an interview with Microsoft's VP of the Interactive Entertainment Business. The VP, Chris Lewis, had a discussion on how the Wii is not a direct competitor with the Xbox 360. While sounding quite condescending, he mentions that it (according to his standards) "Isn't an online connected platform," and for the hundredth time "isn't high definition."  

He then went on to mention how the Xbox 360 can cover a wider audience, because of its superior online service, and diversity of games. He ends by saying that the Xbox Live service is the heart of a 360.