I would say that the Wii is targeting a broader audience. The PS3 and 360 go after the "hardcore" crowd, while the Wii has lots of casual games while not leaving the hardcore gamers out in the cold.
Basically, I'd say that it is not directly competing because it is not an HD console and many people seem to go PSWii or Wii60 while less seem to go with PS360, but is directly competing because it goes for the same crowd as the HD consoles in addition to casual gamers.








