This is a discussion which is almost entirely hypothetical.

Essentially what I am asking is whether sales of the PS360 have any effect on Wii sales or whether if they were different to what they were now would the rate of Wii sales be any different.

 If the PS3 had launched at the expected rate (as the third dominant console in the series) would the Wii sales be slowed down by the hype for the PS3 or would the Wii be in a seperate enough market to travel through largely unscathed and still have sold around the same number of consoles? Same question for the 360. 

Also if the PS360 sales suddenly picked up through 2008 would Wii sales be affected by the sudden rise? 

I'm not entirely sure I understand what you're asking, but if I'm right, you're wondering if the sales of one console affects another? Of course it does!

The question doesn't exactly work, though (I know you said 'hypothetical'). It would be like being in 1998, and saying "If Playstation stops selling, will N64 benefit?" Of course it would, but it didn't happen.

you've been around long enough... should know by now ps360 sales has relatively little impact on wii sales.

of course, that's assuming ps360 continues to churn out games like halo3, mgs4, and FFXIII. i don't know about things like LBP, but one game isn't going to make a big difference. maybe if sony or microsoft releases a wiimote clone, then we can start talking again.

Urgh sorry I'm having trouble getting my thoughts across here.

You were right about what I was asking but the reason I was asking is because I do not believe I have ever seen major consoles in the same generation aimed at such different markets. I was wondering whether the Wii sales would be significantly affected by PS360 sales due to the fact that the consoles have different markets and also due to the fact that many people that buy two consoles will always buy the Wii as one of them.

(I need a sleep =\)

I've never bought this 'different markets' thing. Yes, you occasionally see some grandparents buying a Wii, but that's just not representative of the average owner. Further, consoles aren't for just one person - an entire household has access to each one purchased. How much of this 'expanded market' is just different members of households that already game? If the parents want a Wii and the kid wants a console, the household gets a Wii and MS/Sony just lost a Christmas sale. Of course, we also need to keep in mind that, to date, most Wiis (in the US, at least) have only been sold to people willing to pay a premium on eBay or who were willing to wake up early and stand in line. How many new gamers would do that in order to get a Wii for personal use? That's the sort of thing you do if you're a dedicated gamer and really want the system or if you're getting it as a present for someone else that games.

You can see the competition more clearly from the other side. How many people on this forum or elsewhere would have bought a 360 or PS3 had there been no Wii to choose? No one believes that any significant number of Wii fans on gaming forums are entirely new to video games - the Wii clearly appeals to a significant segment of core gamers.

And the numbers bear this out. If we assume that Wii sales don't have much to do with the sales of the other consoles, it follows that, had the Wii not launched, 360/PS3 sales would be almost identical to what they are now. Yes, these new consoles are more expensive than past consoles have been, but there's no way that that would lead to the market shrinking as much as this would indicate it has.

- content :

PS360 are very different from Wii
they dont aim the same crow
except the Xbox360arcade that is bundled with Viva Pinata maybe.

- price :

PS360 have both a higher price than the Wii
But the Xbox360arcade is definitely very close to the Wii price

Conclusion :

Is the Wii competing versus the PS360 ?

I believe no for the PS3
and yes for the Xbox360 but only versus the Xbo360arcade offer.

Is the Wii suffering from this competition ?

No, it is still the more appealing console to casual.
In fact, this the Xbox360 that is suffering.
2 years that it is selling to hardcore gamer, it now needs to begin to sell to casual too. MS knows it and has created the Xbox360 arcade in this purpose but it is not able to do it because the Wii is "stealing" all the casual market.