Ok, so you say they are competing, but they aren't direct competitors. That seems to be the gist of the difference in opinion.
What in your mind is directly competing? I could say the PS3 and 360 aren't directly competing because the PS3 acts as a blu-ray player as well thusly targeting an additional audience that the 360 isn't. It would be silly, but it could be done, and argued that PS3 sales are boosted by people buying blu-ray players.
What in your mind would mean directly competing? If one takes sales from the other and can be directly correlated as such (rather than in a vague abstract way in which food competes with videogame systems because they both require money) which is obvious that the wii does take, and they compete directly for shelf space (which an Iphone doesn't compete for shelf space with a PSP), and they compete for the attention of 3rd party companies, and compete for consumer attention. The differences in which they are not competing are minuscule compared to the numbers of ways they are competing.
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