It seems that there is an assumption that since everyone in the world did not abandon the Wii the second that Grand Theft Auto 4 was released then the Wii must be in a different market ... The people who make this assumption seem to forget that the Grand Theft Auto games have only ever sold to (at best) 10% of the market. There are other games people are using to make this claim, but there is a lot of overlap in the people who are interested in these types of games, and these games represent about 25% of existing gamers.
Even though the Wii doesn't have HD graphics it does have games that apeal to these same 25% of gamers, but it doesn't focus on them exclusively like the XBox 360 and PS3 does. Any argument that the Wii doesn't compete with the PS3 and XBox 360 can easily be seen as Nintendo has decided to create a videogame system which directly targets the whole gaming maket (as well as new gamers) with their Blue-Ocean strategy, while Sony and Microsoft have decided to create niche products which appeal to the small segment of core gamers.
