I think a lot of people are missing the point.
Nintendo NEVER EVER said they wanted to compete with Microsoft or Sony, then NEVER claimed their console was going to change the gaming industry and they NEVER said the Wii would be for the hard-core gamers.
Their hopes, ambitions and stratergy was to allow people who hadn't 'gamed' before into a world of enjoyment.
And they have.
If people only own Wii Sports then so what. It's a fun game. For us hard-core gamers it will never be enough but for people who lead a busy lifestyle, having a fun little toy next to their tv that keeps them amused, allows them to have a quick look on the internet (again, not hardcore surfers), the Wii has proved an instant hit.
My mum (aged 61) has bought one, my boss (a busy exec aged 56) has bought one, the neighbour (39 year old guitar maker) bought one as well as Zelda.
Can you imagine those people going out and buying a Xbox360 or a PS3?
Sorry, but time to face facts here. Nintendo have NOT decimated the Next-Gen wars because they were never in it. But like Microsoft vowed to get a PC on every desk in every home (and nearly have), Nintendo vowed to do the same, and it looks like they may just do it.