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I didn't read though the entire thread so forgive me if this has already been said.

Even if Sony and MS come up with their own controller it won't stop the Wii, slow it maybe but not stop it.  The Wii has been created for a different market, from the colour, to the size, design, channels, etc. have all been designed to appeal to a different market that what the PS3 or 360 were designed for.    Basically the Wii was made to appeal to women (and men) and the PS3 and especially the 360 were made for gamers - ie: young men.

So controller notwithstanding, that means Sony and MS must work against their entire design strategy to attract new users whereas Nintendo just continues as planned from before launch.  Sony & MS 'casual' Wii-motish offerings will always therefore come off as 'me-too' or half-assed because that's just not the original intent of their systems.

Worse, it'll annoy the hell out of their dedicated base who love them for what they are and will hate them trying to be what they're not.