Yes because if they had had the success Wii is having then we would be left with very little variety in games. If you are not a fan of racing games, FPS, Madden, FIFA there would have been nothing left for you to play as that would be all developers would be making. Also the high cost of making games would mean no risks being taken ever. I think the prices of consoles would have been totally unacceptable.
I'm particularly glad to see PS3 being thrashed by Wii as I feel it is totally unacceptable for companies to force its fans to pay for what they don't want so that you can win a disc format war that has nothing to do with games.
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