I think they their issues with xbox/ps3 are with the people they are marketing it to. There have been a number of uDraw ads here in NZ and they basically show mom and kids playing with the uDraw, drawing stuff, playing games etc. However, the publicity hasnt been enough (or the device isnt innovative enough) that parents are aware of this product, and since the ads focus on family fun, hardcore gamers (especially prevalent on xbox/ps3) arent going to buy them either.
Add to that, the games that the uDraw supports on Wii are very kid-centric and there is no functionality for the uDraw to support normal ps3/xbox games similar to a 3rd party controller and there is no incentive for a hardcore gamer to buy it.
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