Where did the fallacy that every Wii owner must also own a PS3 or 360 come from? There's no stats to back it up, it's just your completely biased opinion.
Wii, 360, and PS3 all play video games, therefore they're competing for the developers who make those games. If Wii is far and away selling the most hardware and software do you think everyone's just going to say, oh they're a different market we're not gonna bother with that and keep making HD games that lose money?
Your Ferrari example is also stupid because they don't sell Ferrari's at a huge loss to try to make up the money on gasoline, and the 360 and PS3 aren't intentionally selling to a niche market, they're just getting their mainstream market stolen by the Wii.
At this time last generation there'd been about 50-55 million systems sold, if you count the Wii then we're at about that amount. If you don't count the Wii then the video game market is dying because it's only selling half of what it should be.
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