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GodofWine said:

How in the world would an in stock Wii cause someone who wanted to buy a PS3 to not buy a PS3 exactly?

Besides the fact that these two systems both spin shiny disc and output on to a TV, there is very little competition in people's minds on whether "Hmmm, do I want a PS3 and its type of game (shooter / driving / etc), or do I want a Wii and its unique game play and style of game?"

 Everyone I know with a Wii, never considered a PS3 / 360, and everyone I know with a PS3 / 360 does not have any inclination to play Mario Kart over Gran Turismo / Forza.  (only the truly hardcore game system owners who post on websites like this typically own 2-3 consoles, normal (no offense meant!! ) people have one)

Wii just found a new group of buyers (casuals), and is priced well / with the right SW to connect to parents with young children. But Super Smash will never compete with MGS4 or GoW directly.

All are great machines that do amazing things, but I think the Wii is unto a new category of its own and all this Wii vs. the others is not a perfectly valid comparison.

 ^^ and thats my opinion as a marketing guy.

It's not that Nintendo is trying to persuade every potential PS3 buying to purchase a Wii, but to let people who want to buy a Wii have the possibility. And by doing this, it will increase the sales of the Wii to hopefully pass that of the PS3.