The Nintendo Wii seems like magic. Good user design and usability considerations along with a great word of mouth publicity has done what no amount of marketing push and technical specifications could have done; for the past considerable period of time, it has kept on pushing both the PlayStation 3 and the Xbox360 by the side, and kept on generating a huge amount of buzz for itself. If you look at these figures, you can see why both Microsoft and Sony are despairing:
Nintendo DS topped the selling hardware chart with 783,000 units sold, followed by Wii (666,700 units), PlayStation3 (405,000 units), PlayStation Portable (337,400 units), Xbox 360 (219,000 units) and PlayStation 2 (188,000 units). Nintendo maintained strong top 10 positions in terms of software sales, for DS and Wii: Guitar Hero On Tour at number 2, Wii Fit with Board at number 4 (372,700 units), Wii Play with Remote at number 5 (359,000 units), Mario Kart Wii with Wheel at number 7 (322,400 units), Lego Indiana Jones: The Original Adventures for Wii (294,000 units) and DS (267,800 units) at number 8 and 9.
Both Microsoft and Sony are trying every trick in the trade, whether that means reducing the price of the unit (Microsoft) or releasing upgraded versions for the same prize (Sony). Both of them are more or less clueless right now as to how to catch up with Nintendo; the Wii is way ahead in terms of customer perception.