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cleveland124 said:

I actually think I'm an example of why they do compete.  I love video games and I can't stand to miss good ones.  That's why I grabbed both.  But both of them compete for my monthly gaming budget, so I see them in very direct competition although I support both of them.


They compete for your dollar, yes. But that's because you bought both of them. A majority of Wii and PS3 owners own only one console.

And it is my guess, that if the Wii never existed, a very large % of it's owners would not own a PS3 or a 360. That's why I say they don't compete directly.