You know how Nintendo has basically run away with this console cycle? The fact that the Wii, despite being launched a year later, has already taken over the lifetime sales of the Xbox 360 and shows no sign of slowing down, not to mention leaving the PS3 in the dust? Yeah, you’d think that would perhaps worry some of the corporate executives a bit, but it seems that isn’t the case. In fact, according to Sony CEO Howard Stringer, his company is not at all concerned about the Wii, because the PS3 doesn’t want those boring old Wii gamers anyway.

"The Wii is a well-made device that has found a new target group. For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue. Playstation games are rather designed for those who play a lot. Although it’s a different strategy, it pays off. We currently have a production bottleneck with the Playstation 3."

He also stated that in spite of all that, Nintendo may actually have a "superior business model" due to the fact that they make money on every Wii sold, while Sony takes a loss every time it moves a piece of hardware. Stringer is quick to add, though, that:

"The Wii is not succeeding at our expense - it is not hurting us."

While Sony is making progress in this generation’s console war, the company is still deep in the red due to all the costs associated with producing the PS3. The company spent over $3 billion to get the machine onto the market, money which Stringer doesn’t expect to see recover, "for as long as I live." So while the company may choose to believe that Nintendo isn’t affecting their sales, the fact that there is a cheaper console available with cheaper games that appeal to a wider audience is usually a recipe for lost sales.

- Via GamesIndustry.biz