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Is the Wii really eating into the demographic which buy PS3's, is it really?

Are you going to see someone who will buy Killzone 2 sell his PS3 and buy a Wii for The Conduit? The 360 is the PS3's main competition, it is what is taking hardware and software sales from them, not the Wii.

Sony are not going to start saying "yeah so we lost to Nintendo and MS as well" and piss off shareholders, it is not possible to give up and accept 3rd place when you come from 1st place for 10 years.

I always thought Nintendo fanboys were the most pleasant but damn, this site has showed me that is most definitely not the case. :/