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@DJmeister
I would agree with you if all the systems offered the same functionality or were going after the same demographic. Wii offers a completely different gaming experience and Nintendo is going after the non gaming crowd.

It's sort of like going to a car lot specifically to buy a 6 person passenger car or minivan for your family but since everyone is sold out for a while you buy 2 person pick-up truck instead. Sure it's going to happen but not enough for the manufacturers to stop making cars because everyone is buying trucks now or even enough that trucks become the dominate mode of transportation.