Yes, ioi should put Wii in its own section of VGChartz, and give it a nice little 100% market share. And a little crown too, and a staff, and it'll most likely need a cape.

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Amazingly enough, Wii is a video game console. You play video games (gasp) by using a control method to direct the action on the television screen. So yes, in that sense, Wii is competing with other objects that perform that very same function (aka 360 and PS3). Just because Wii is expanding the market, doesn't mean it's in an entirely new one.

By your definition DS isn't directly competing with PSP either. Hey ioi! Give PSP and DS their own sections, with lil' crows and staffs too! 100% baby!

I really don't think this issue would be such a bother if Wii wasn't selling so well...

Tell Activision they aren't competing when it decides where to spend its next development dollar, or when you look over there financial statements for how Guitar Hero 3 sold on each console.

Actually, the issue is that it's selling better than it did, when Nintendo was playing by the assumed rules of console wars. 

If it somehow outsold the others, with specs on par with them, it may not have been seen to be such a shakeup. Yet the seeming judo flip this times seems to make some want to "disqualify" the Wii from the console wars. 

Even that isn't true, there are many Non-Nintedo fans that are 15-30 and are buying the Wii.

A bit of topic 

To add into the confusion I would like to say that they are all in competition with the PC, on the software side it's direct, it's just easier to see with 360/PS3 on a game by game bases.

Getting really off topic

The Wii is having good success in getting PC Gamers to buy a Wii and Wii games, just as the Xbox & Xbox360 managed to do earlier in it's life - but for very different reasons.

From a (possible) PC Gamers point of view - now totally off topic.

This Gen there has been more focus on T/FPS on consoles then ever before. Both Microsoft and Sony have put them forth as there BIG games, Gears of War, halo 3, Resistance: Fall of Man,  KillZone 2.

All these games have held center stage and yet they are almost meaningless to PC Gamers due to the very large library in this genre, the Wii gave them Wii Sports which proved to be something totally new and  refreshing, there is't so much "hummmm crap graphics" as it's not a PC, it's not expected to have great graphics, PC gamers always knew that consoles were weaker then PC's.

PS3, XBox360? Why get them, they offer nothing new. Nothing a decent PC doesn't offer. Get away from a single player experiance and play with your friends and family? - Go for the Wii, it's whats it's made for - what it's focused on.

Will the wii hurt the PC market? No, at least not hardware, but it might take a bit of a hit in game sales but as they are so hard to track anyway there is no way to prove it.

Back on Topic

Where the competition is clearest is people upgrading from the PS2 to the Wii, these people might of eventually gone to the ps3 or even the Xbox360.

 It's clear that both sony and Microsoft want to claim the "semi-casual" market of PS2 and are slowly starting to create games directed at them, just because these games are not selling the system doesn't mean there are not in the same market...it just means they are doing poorly. 

Also it should be noted that New/Casual gamers are introduced to  games with more depth that the Wii also offers - these people may become "hardcore" - IMO these people are unlikely to go to the Ps3/X360 once they have become experts with motion/wii controls - just like how some M&K users don't like Gamepads.

The fact that the Wii is very very different from the PS360 doesn't mean it's not directly competing. That's just smart business. You want to differentiate yourself from your competitors, to advertise a unique experience that they can't provide.

The Wii being really different is part of the DIRECT COMPETITION. And it's a huge asset. Meanwhile, some people can't really tell the difference between a PS3 and a 360, except one has Halo.

Also, a lower price point is also part of the competition. If you're different AND cheaper, people will remember you.

without definition, Adding "directly" in front of competing, just gives a line that can be moved back at will any time it's shown that they are directly competing in some specific (and important) area/s. So they are competing for market share, shelf space, consumer's videogame dollars, business' (ala best buy and walmart) videogame budget, 3rd party's attention and money and talent, so on and so forth. It doesn't mean they aren't DIRECTLY competing, because it doesn't fulfill some criteria that you have defined yourself as being "directly competing".

I can say the wii isn't directly competing because it supports gamecube controllers and the other systems don't. Suddenly all those ways that it is directly competing are irrelevant because it doesn't fit my criteria of directly competing.

If Nintendo had taken that approach, and GTA could be done on the Wii, then they would be competing for the same market. Because the same kind of games can not be played on each system, they are only competing for the market that likes both types of games.

Personally, I don't even think of the Wii as a console. I think if it as a Nintendo machine. Nintendo has more popular IP's then anyone else, and if you like there IP's, you buy a box to play them. I can not think of a single IP I would look to a Nintendo box for, that's not owned by Nintendo.

I own a Wii (along with a 360 and PS3), and I have zero 3rd party games for the Wii. My next purchase will be WiiFit, another Nintendo IP.

And as for your last comment. No, they are not fighting for the same dollars. If a fine Swiss Chalet was right next to Burger King, and then Burger King closed, the Swiss Chalet's business would not grow. No one out to get fast food would stop in there instead, they would find another fast food restaurant. Same goes for the Burger King if the fine restaurant closed.

This is true only if you can offer, to the same gamer that wants to play Halo, MGS, or FF, something that they would rather play. The Wii does not do that.

i already posted evidence of the wii competing directly in japan.