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I actually think another system is causing a dip in Wii sales -- but it isn't the 360 (or PS3).

The DSi is IMO.

March 2009 Hardware NPD:

March 2009:
Nintendo Wii – 601,000
Nintendo DS - 563,000

April 2009: (DSi launch)
Nintendo DS - 1.04M
Wii - 340K


May 2009:
Wii 289.5K
Nintendo DS 633.5K

I mean it's a pretty strange coincidence that Wii sales go down pretty sharply after the DSi launch? Now I know some people will say well one's a portable the other is a console .... but with a chunk of this new casual audience, the only alternative a lot of these consumers look at to Wii is actually the DS -- not the 360 or PS3. It's the only other machine hitting those same demographics, and Nintendo has marketed the DSi *a lot* since launch with those face-mapping commercials and the Beyonce/Rhythm Heaven spots.

We'll see if Wii Sports Resort will get excitement back with the Wii.