why companies arent considering nintendo direct competition?

[kylohk]

ElderScrollsFan said:
the only reason wii is pwning this gen is because, basically the Wii is a cheap Ps2, but of course the ps2 is better then wii and always will be, i bet if sony dropps the ps3 price down to $299 by this christmas, things will be different and sony will be back in #1 place just like it should be.

Forum goers almost always fail to put themselves in the companies' shoes. The main question is, is it even economically viable? A company's decisions are not just about "winning" in the market. The primary objective is to please the shareholders (so they get more dividends). If you do something that increases your losses in that sector, the shareholders will get upset, stock prices will drop, and the company will suffer even more.