I came across this Analyst prediction on the future of gaming consoles for the year .
Analyst Opinion - If you think about it, this will be a fascinating fourth quarter. Nintendo Wii, to pretty much the surprise of everyone, is the product to beat, Sony, the old champ, is on life support but getting a short term uplift, and last week even the Xbox Core unit (which has never sold well) sold very well.
From what I have seen the games in Wii look bad, but the cost and the interesting interface makes it very attractive. I would say Wii is priced exactly right for a impulse buy, especially during holiday season.
Anyway, I also read that last week the sales of Wii has come down drastically in Japan. But I think US and other countries, especially like India should be focus area for Nintendo now to boost sales and maybe somehow get atleast one really good game (a blockbuster like Halo maybe) out there..