With all three consoles out now, it seems to me that Nintendo has gone completely away from the competition. The PS3 is clearly competing with the 360, but is the Wii really doing the same?
I don't know about everyone else, but I consider the Wii and the 360 sufficiently different to consider getting both, but would never get both the 360 and the PS3.
So I guess what I'm trying to say is that Nintendo isn't even trying to compete. Sony and Microsoft seem to be the only ones truly competing.