Probably the same reason why everyone isn't watching DVD's on £1000+ Denon and Arcam DVD decks.Top brands and technology cost premium money.Most people are quite happy to watch DVD's on a £20 special from Asda,others would rather spend the extra and get the better quality.Simple as that really.
So nothing at all to do with the fact that the Japanese games market more than anywhere dictates how well a console does? The only exception to the rule was the Dreamcast, which flopped here (with the masses anyway) yet carried on selling until 2004 with games still being produced into 2006.
Nintendo have 118 years experience and know what buttons to press. People say they got it wrong with the N64 and Gamecube, yet consider this....... Ask people what console they would buy out of N64 and PSOne now? Or see the number of Gamecubes littering the windows at gamestation compared to that of PS2 and Xbox. Nintendo may not of had the razz-a-mataz of Sony and Microsoft but they have longevity and they are fun.
The virtual console on the Wii has generated more sales for 1 game than Sony have sold PS3's around the world. Go to Blockbuster/Game/Gamestation etc there is no buzz, not the buzz there has been for the PS2 Wii Xbox latest Zelda etc. In Japan people were queueing for days for a Wii. The were huge 4 hour queues to pick up the latest batch of DSLites on the day when PS3 came out. Yet it was possible to pop in and pick a PS3 console up. In Japan and America you can get a PS3 off the shelf yet....Pre-Orders of The Fastest Selling Console Of All Time* are still being taken and fullfiled.
This time around it isn't about what looks pretty (oh and there is this myth that the Wii doesn't have goof graphics
) This time it is about a step to the side, a revolution in gaming. Sony is trailing behind and may not have an answer. Blu-Ray (Beta-Max)?
*Thanks to Gamesmaster Magazine