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Honestly, I work at EB and I don't get many people coming in the store asking asking for a Wii and when I tell them nos they ask for a 360 instead.

People who want a Wii know what it does and how you play games. They also know that the 360 doesn't do the same things. The only people that will by a 360 instead are the ones who are going to buy a 360 eventually anyways and they will still buy a Wii when they can find one.

Thus Nintendo only looses sales in the short-term.