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Ehm, let me see: cause a) it's "stealing" potential costumers and therefore loses marketshare and b) because it's "stealing" exclusives from them. Seems to me they are competing...


That would be the definition of competition. And yes for the Japanese market and Japanese developers it is definitely true. The Wii gets exclusives that would have otherwise come to the PS3 and therefore most likely gets sales that normally would have gone to the PS3. In Japan Wii and PS3 are directly competing.

In the rest of the world they barely do. The games developed for Wii and PS360 are completely different. I am pretty sure that the same is true for customers. If you are interested in FPS or if you like GTA the Wii is not even an option. If you want a cheap fun game box to play with friends you will not buy a PS3. The PS2 also had parts of the casual market the Wii now owns, on the other hand with the exception of Singstar the PS3 almost hasn't made any attempt to get this market this gen and with the current price it would be a stupid attempt anyway. In the rest of the world the Wii is much more competing with the PS2.