i don't think microsoft is afraid either. Both systems are for different gamers. And both companies in general are. Here is one example and I wish i had taken pictures. Go to your local wal-mart. look at what games are offered for any Nintendo system, and then compare it to any other system. It was more evident with the DS. There were at least 4 rows of games that were either movie to game games, party games, mario games, pokemon games, nintendogs, catz, dogz, hamsterz, you get the point. Out of the entire bunch of games, the only racing game was Cars. At least with my Wal-mart, it is MORE than evident what kind of crowd Nintendo is aiming for. 8-13 or younger, no mature games, not even Resident Evil was available.
What i'm getting at is that Nintendo to me, by what I see at my local stores is very obvious that Nintendo is geared to the younger crowd. Which is fine, it's working for them so why stop whats working, whereas the 360 you have the movie to game conversions, but you also have a good mix of other games, you think Microsoft is going to develope a cartoony sport game? No, do you think Nintendo is going to develope a Gears of War type game..no. I know the Wii has not been around as long, but everybody knows already what type of games are going to come out for it, its no suprise, and then you have the fact that there are going to be games that the Wii will not have just because the hardware will not be able to handle it. Just wait til PS3 and 360 get a couple more years under its belt, no doubt they will make the Wii look more and more outdated than it already is.