In the last gen after three years the PS2 had sold 53 million and the lowest two competitors were both at 10 million, and yet noone talked about how the industry was going to collapse.

http://vgchartz.com/hwcomps.php?cons1=PS2&reg1=All&cons2=GC&reg2=All&cons3=XB&reg3=All&start=36821&end=37920&weekly=1

If the Wii wasn't around, both the 360 and PS3 would've sold some amount better, and the industry would be doing just fine.  There just wouldn't be a clear smashing victor like there was in the PS2.

After three years, the PS2 was only at around 45 million, not 53 million,my god, do you even know how to look at graph?  Let me explain to you, three years is 156 weeks (52 X 3), at 156 weeks, PS2 had sold only a little over 45 million.  Also the reason no one was talking about the collapse of the industry last gen, was because all of the consoles were essentially the same, systems with more power than their previous generation, this time the market diverged with the HD twins going off in their own direction and being largely snubbed by the market.

Also, by saying that they would be doing better without the Wii, you're admitting that the Wii is in direct compeition with the PS3 and 360, and admitting that the public prefers the Wii, indicating that they are not happy with the HD consoles, that they have snubbed the HD market in favor of the disruptive Wii, either way you are admitting that people are not happy with the HD twins and want something different.

How is selling at a rate faster than the previous market leader snubbing HD consoles? The market would be just fine without the Wii, and yes of course the public chose the Wii over the HD consoles, that's pretty easy to see.

And forgive me for misinterpreting the graph that wouldn't start at March like I wanted it to, I gave you extra to help out your argument. Apparently it went unappreciated.

Some people are unhappy with HD consoles and want something different, but if the Wii wasn't around it doesn't mean that the industry would fade into nonexistence, that's just silly.

Avinash, you mean "only", right?...>_>

By the way, Avinash, your 3rd prediction (in your sig) from top to bottom is almost impossible.

No, its not, see your first flaw is to assume that the market would be doing fine without the Wii, in fact, considering the state of the economy and the historical sales trends of consoles at various prioces, the liklihood is that sales of the HD twns would not be much better than they are right now.  In fact even with their price cuts, the sales of the HD consoles seems to be trending downwards rather quickly.

Actually yeah it does mean that the console industry would eventually fade into a niche market at best, look at Japan, where sales of consoles are terrible, and especially bad for the HD consoles, Japan is merely ahead of the curve in that regard, sticking with a trend that is unwanted by the public, and refusing to expand the market, will eventually lead to a collapsed market.

Wii isn't selling like gangbusters in Japan either. Doesn't that mean according to your theory that the Wii will decline and it did nothing to save the industry?