"So when you mention the HD consoles fighting it out, are you saying that if 360 sales increase ps3 sales with decrease and vice versa as the market demand for a HD console stays the same, just split betwene the two?"
I would say that the moves Sony and Microsoft make will have a bigger effect on each other. That is because their consoles are so similar.
The unique qualities of the Wii keep it somewhat insulated from the other two, but I would not say that it is impervious. It would just take a whole lot more for Sony or Microsoft to cut into Nintendo's sales.
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