Now how did a product from a company which was barely surviving beat the biggies. XBox 360 and PS3 both were beasts in terms of computing power and the host of features they provided. I would not like to delve into the features they provided but to give you a brief, consider this. IBM has come up with a server based on the Cell processor, the heart of PS3. A more interesting article on how an XBox 360, was turned into a laptop can be found here on Make. The point I am trying to make is these two machines were not just gaming consoles but did many more things from playing your DVDs, Blu-Ray's, connecting to net, and host of other things.
Now if we thought that Wii was possible all of sudden with a master stroke of genius we would be wrong. It was a slow visionary approach taken by Nintendo's CEO Satoru Iwata and the legendary game designer Shigeru Miyamoto over five year. Yest Five years, it sounds to long in a world where new products are launched over night. But that's the fact. For a complete story on how Nintendo struck back, read the following article on CNN Money. A must read for any one to do with products. I am sure this story of Wii is going to be as legendary as a Walkman or an iPod.