Our friends over at Digital Trends analyze why the Wii is beating the Xbox 360 and the PS3. There is a rumor that the Xbox 360 Arcade will be soon selling below $200. Still, consumers are still likely to pay $50 more for a Wii in my opinion than go for the cheaper Xbox 360 if they can get one.

Quote: "Nintendo has gotten family and friends involved with their system without the multimedia sharing capabilities that the other systems offer. The interesting lesson here (and one taught by the Palm Pilot and the iPod) is that creating a product that is simple and does its primary job well while addressing an unmet need can lead to unusual success. At its peak Palm had a higher stock market valuation than GE and the iPod is what saved Apple. "
Read the full report on Digital Trends.