Ummmm no.

They are all of the same game console generation, therefore they are all direct competitors.

It's as simple as that.

READ http://malstrom.50webs.com/birdman.html

Actually, Malstrom has written now a number of articles.  They go a bit far in his flights of fancy, but the part that I thought was the most interesting was quotes from Nintendo themselves.

To say that they are going after 'casuals' or  'everybody' or even 'disruptive', isn't quite accurate I hear it.  What I hear them saying is they are going after the dissatisfied.  The disenfranchised.  The 'I-could-care-less' ones.  The 'I can't do it' ones.  Which right now means the young, the old, the female, the 'I don't have the time', the 'I'm tired of the same old format of games' ones.

Which, for now, means casuals, with a good dose of hardcore as well.  The ones that probably bought a X360 or PS3, but also bought a Wii, because it gave them something more.  That is, it gave some satisfication that the X360 or PS3 did NOT.

Of course, for now, casuals only buy a game here and there.  So the Wii has to do a lot of console sales to get the same amount of software sales.  Until some of the casuals become less casual.  And  as they get more interested in gaming they do buy more games, IF the games that they like are there and decently made ones.  

@Million

"I'd argue that the Wii's in a league of it's own , it's not in direct competition with the 360 and PS3 . Many Wii owners( who are also hardcore gamers) are PSWii or Wii360. I can't imagine anyone settling with the Wii alone for current gen gaming."

I think you are partially right.  360 and PS3 markets are too small for Nintendo.  They are basically going after the satisfied hardcore gamer that wants everything to be as it was, only more so.  That is more graphics, more online, more of the same.  

But partially wrong as well.  Why would those dissatisfied with how the last generation of gaming was, want any other console but the Wii? 

 "The greatest trick the devil ever pulled was convincing people he didn't exist."

I've gotta agree with superchunk.  They all play games, they all cost money, they are in competition, no matter how Microsoft, Sony or Nintendo try to spin it. 

I liked Crazzyman better when his alias wasn't Million. At least back then he was genuinely funny for his insanity, instead of just plain old insane.

Of course the Wii is in direct competition with the Xbox360 and the PS3. To suggest otherwise is just a convenient excuse. The success of the Wii has a direct impact on the sales performance of the other two consoles. The PS3 is a relative failure when compared to its predecessors. To imply that the success of the Wii has not in some way influenced this outcome is rediculous. It is an arbitrary distinction with no relevence to the real world of consumer behaviour.

What the hell..? The Wii is a video game console, the PS2, PS3, and 360 are video games consoles.. Of course they should be compared! Nice cop out for trying to dismiss the Wii kicking the other consoles' asses.

It may be a game console, (In some people's minds) but it is catering to an entirely different group of people. Maybe this is a reason why some don't think it's competing with the 360 and PS3.

When I had a Wii, it was fun, for a bit. But when it came to the games, the PS3 and 360 took up most of my time. Not that I hated the wii, It's just that it rarely had the games that I wanted to play.

By the way, I don't understand why people become so defensive over the Wii or any other console when someone "bashes" it. Instead of arguing about it maybe you could play the system you like,(since X console is the best and stuff) instead of defending it on internet forums.

Where did the fallacy that every Wii owner must also own a PS3 or 360 come from? There's no stats to back it up, it's just your completely biased opinion.

Wii, 360, and PS3 all play video games, therefore they're competing for the developers who make those games. If Wii is far and away selling the most hardware and software do you think everyone's just going to say, oh they're a different market we're not gonna bother with that and keep making HD games that lose money?

Your Ferrari example is also stupid because they don't sell Ferrari's at a huge loss to try to make up the money on gasoline, and the 360 and PS3 aren't intentionally selling to a niche market, they're just getting their mainstream market stolen by the Wii.

At this time last generation there'd been about 50-55 million systems sold, if you count the Wii then we're at about that amount. If you don't count the Wii then the video game market is dying because it's only selling half of what it should be.

The Wii is a video game console, just like the 360 and PS3.  Of course they're competing in the same market.

As far as system power goes, I find the Wii to be more than adequate.  It's still more powerful than any other console ever made except the 360 and PS3.  Play Galaxy, Brawl, or MP3 and you will see what the Wii is capable of.  None of these games could have been done by the original XBox or GC (both of which were more powerful than the PS2).

The Wii is definately targetting more than just the casual and non-gamers; they're going for everybody.