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The wii has many features that together have created it's demand.

1. innovative controls that are not intimidating to new users
2. wii sports and a great library of other games targeted at the casual family orientated audience
3. price advantage
4. a ton of good press/hype about being good for your health and mind

now considering the price of the wii has constantly been selling for $350 or more I somehow think that the price advantage is the smallest effect to the wii's demand. g'luck on that $300 price tag ps3.
http://www.news.com/8301-13772_3-9843250-52.html