The Wii isnt competing with next gen consoles, its competing with last gen

[Sqrl]

Words Of Wisdom said:

Sqrl said:

In your first sentence you ask us to think and then you cease to do so yourself. Plain and simple the economics of the situation are clear. People who own a Wii buy Wii games...and money spent on a Wii and Wii games is the same type of income (ie disposable income) that is spent on PS3 and 360 games. So what you have is gamers...buying games from all the consoles ...using the money from the same source....so what do you have??? COMPETITION! Each console competes for the cash in every gamer's wallet, they are competing for the same $$$ and thus they are competing. I'm glad we thought about it and came to the right conclusion....don't feel bad you had the right idea just needed better follow through.

The problem with this is that you do not distinguish direct and indirect competition. If I eat out at Taco Bell so much I don't have spare change left over to buy a video game, does that prove that Taco Bell is competing with Nintendo? In the sense that all products/services are competing with each other for money, yes. However, Taco Bell is not in direct competition with Nintendo.

I'm not saying they're not in direct competition (they most certainly are), but the argument that all the money for them comes from the same source so they're in direct competition is a bad one.

 I think you missed that, and no I didn't go out of my way to differentiate it.  But that had more to do with not feeling it worthy of the effort in this case.  

Disposable income is not Taco Bell money, thats is filed under "Essentials - Food".