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This argument is ridiculous. There aren't X numbers of consumers out there who each have to choose one system. Wii is growing the market, and it's inventing a new kind of gaming (well, really the DS pioneered it). New casual gamers and old hardcore gamers may both be drawn to the Wii, but in the end the latter will have to turn to PS3/360 to find the types of games they've been enjoying until now. As long as these people exist, there will be a market for "hardcore" consoles. Wii's success doesn't diminish them one bit. You can start the doomsaying when PS3/360 actually themselves sell poorly, not when they just fail to match the sales of an unprecedented success story like Wii.

and it is plausable that this could be the PS3's best year

Possible... extremely unlikely. PS3 is universally considered a failure this year (except for the holiday season) because of its high price and poor game selection. The price issue is now largely corrected, and virtually all the games that got people excited over it in the first place are scheduled for release in 2008/2009. It's really hard to see them going anywhere but up from here.