Ultimately, I think it is fairly optimistic to expect the Wii to break into a range of sales which is larger than the combined sales of Consoles and Handhelds in the previous generation. I was very careful not to use the word impossible though because there are reasons to believe that the Wii could encourage growth in the industry in both existing and new markets.
In the current market around the world the primary demographic videogames are sold to is young single males between the ages of 13 and 35. Within this narrow demographic videogame usage is not ubiquitous, and lots of young males choose not to play videogames because they're too inactive and not social. What this means is that videogames are really only selling to (roughly) 20% to 25% of people in existing markets.
Over the past couple of years there has been massive growth in India and China which has resulted in more and more households having the money to be able to afford "Expensive" ($100 to $200) electronics; and many of these households have a desire to own these electornics as a way of showing off. Piracy is a huge issue in these markets but this would impact software sales far more than hardware sales (and it is possible that a company could reduce the quantity of piracy).
