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The Wii U is in the same market as PS360, but it has a different target audience. Consumers buying PS360 today are most likely not interest in buying next gen systems around launch. It's hardcore gamers buying the Wii U and eventually the PS4 and XBOX GOLD while casuals are stuck in last gen. The Wii U is having problems because last gen Nintendo sacrificed a lot of its hardcore audience in order to resonate better with casuals. The Wii was always in competition with GameCube, PS2, and XBOX.

Once PS4 and XBOX GOLD arrive the hardcore gamers will have a choice. "Do I buy a Wii U or a PS4? Maybe I'll go GOLD." That's when the battle starts.