I’ll start with this, people spend as much as they think something is worth – I’m sure if everyone was educated about the various functions of a PS3 it would of outsold the Xbox360 2:1 in all but America – which now in February 2008 it look like it’s poised to do.

So your totally right about the appeal thing but I’m not sure if you noticed that per month all systems are generally selling more per month. This might be due to Consoles this generation being in mainstream media quite a bit more than usual, but peoples pockets seemed to have been prepared this round.
With that said, though amazingly the only company in the black is Nintendo, I don’t think anything Sony does will change that for the next 6 months. Microsoft seems to be the dream cast of this gen – I mean I remember that time like it was yesterday, this is totally dey ja vu.

This cycle, things aren’t actually going faster – theirs just more people involved in it early, so you get bigger numbers sooner. Mainly because of this your going to see the Wii continue with the big numbers probably for a while through 2009, that is of course if Nintendo keeps marketing it right. (Wii musical is Wiifit meets Guitar Hero.)

There are so many other factors – but in the dimension your referring to price point, your right price isn’t one of them – if someone sees the PS3 as being worth it, then they will save and buy it, it would be doubtful they would go get a Wii just because its $600. (Some probably would.)

Sony is fighting and losing a two-front war. They’re bleeding hardcore, dedicated video gamers to the Xbox 360, with its comprehensive online features and its slightly lower price point. At the same time, they’ve completely priced themselves out of the casual gamer market and Nintendo – with its novel, innovative controller – has waggled in and claimed it.

Now I’m not saying that a competitively-priced PS3 would be winning the console war. I argued when the Wii launched that Nintendo’s strategy of competitive differentiation and interface innovation paired with one of the best PR campaigns the industry has ever seen would lead to a more competitive showing from Nintendo this time around. But the reason that the Wii is DOMINATING this round of the console wars thus far instead of merely winning it owes a lot to the PS3′s $600 price tag making it a non-option for casual gamers. I think we’d have a much more even three-way race had Sony gone another path.

I’m not sure why this is, but I think you’re onto something. When it came time to enter this generation of consoles I went with Nintendo, not once considering the 360 or the PS3. I’m no Nintendo fanboy, and the price difference with the Xbox wasn’t much of a factor ($70 for an extra wiimote and nunchuk certainly adds to the Wii’s price).
Trying to figure out why these other consoles seem undesirable though, the only thing I can come up with is that they focus quite a bit on the online component of gaming and that just turns me off I guess. Maybe I’m scared of being trounced by cyber athletes (!) like Fatal1ty, but really I think that it’s just a dimension of gaming that doesn’t appeal to me and maybe other Wii owners as well.