I don't know the Kinect itself is selling very well, however sales of the 360 hardware aren't too much higher then Wii. Sales of hardware is great for Microsoft but it doesn't appear to be blowing Nintendo away. I think sure their might be alittle market share being lost but Nintendo was loosing that share before Kinect it was bound to happen that Wii would begin to loose momentum. As for the 360 it has been selling consistantly for years it has less market saturation and their for more room to expand then Wii does.
Of course a console with less user base has more room for expansion then Nintendo's Wii which has sold tens of millions more. Based on how high the sales of 360 are compaired to Wii I think that this is the natural decrease in Wii's sales. Wii is selling better then PS2 was at this point in its life.
Kinect will help keep 360 sales above Wii's probably for the rest of the generation. But I don't think it is having any more of a negative impact on Nintendo then before it launched. This is just the natural progression!
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
