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SpartanFX said:
I honestly think it's due to different audiences these companies are targeting,,,,,nintendo is exploring audiences that Sony/Microsoft had no intention of (or didn't think about) exploring it.

for example ,Honda is exploring different market audience than say jeep ,despite both being cars.( jeep does not consider Honda as a direct competition ,,,, the reason being different market audiences)

But nintendo is still targetting their same audience, but expanding on it. So yes they are still competing.