The Nintendo Wii is definitely in a different league compared to the PS3 and Xbox 360. Reggie Fils-Aime and other Nintendo officials stated the console will not compete against the competition. However, Yasuhiro Wada, creator of Harvest Moon, says the Wii cannot compete against the other systems. Instead, the main competiiton is the DS. During a interview with Spong, this was brought up towards the end of the transcript:

SPOnG: Final question, you have said that Wii’s future is still uncertain. What three things would you advise Nintendo to do to ensure that Wii is a continuing success?

Yasuhiro Wada: [laughs] Me?

SPOnG: Yes!

Yasuhiro Wada: It’s very difficult. Wii cannot really compete against PS3 or 360, which is why Wii’s main competitor right now is DS. They are competing on the same level. So, Nintendo has to work harder to make Wii’s own market, as opposed to competing against DS’s market. This would be my first piece of advice to Nintendo.

Wii Sports is the only game that can be ONLY played on Wii, not on any other console. So future games plans such as Brain Training on Wii or that type of thing – I don’t think this is such a great idea – as these games are already being played and are very popular on DS… they are not specific to the Wii.

The full interview can be found here: http://spong.com/feature/10109553