OK, so since when has Nintendo won the battle against Sony? I have a PS3, and to me, I think it blows the Wii completely out of the water. No question about it. Graphics alone, PS3 is far better. I've used the Wii, and frankly, it's a bit boring after a while. The only game I really love on the Wii is Super Mario Brothers... which doesn't even utilize the whole concept of the Wii, being interactive with the joystick/controller.
Whatevs.
I have both a Wii and a PS3 and I play PS3 much more. The problem is, I play it mainly alone. The PS3 has a MUCH better online system, deeper games, and better graphics but my Family, Friends, and Girlfriend are not gamers. It is much easier to get them to play a game of Boom Blox or Wii Sports Resort than a Co-Op game of Uncharted 2. So in my mind, the Wii has it's place and so does the PS3. By the end of the generation, I can see Sony's console overtaking the Wii though.
Also, if I were Nintendo, I would be concerned that the expanded market won't buy their next generation console. They have alienated alot of gamers with their online policies, DRM policies, third-party policies, and lack of content in general so if the older gamers don't go out and buy the Wii 2 in droves like they did the Wii then they could be in for some hard times.