"The Wii costs a lot less, people will be more tempted to buy cheaper machines"
Actually that is kind of what I meant. People are buying cheaper machines with poorer graphics instead of the latest machines.
No, it is not a matter of money in most cases. The most successful games are expensive games with additional hardware, sometimes almost similar expensive than the Wii itself. People are buying some big sport pads with software, guitars with a game and similar. They are spending a lot of money for the Wii.
The reason is not that they want to sacrifice graphics because of the money. They are interested in the new style of entertainment. Families and older people are buying the Wii. This console entered new markets. I know a lot of sportsmen buying the Wii only because of the sports games or for their kids to let them move and do sport in the living rooms.
There is more than only graphics and price, it is just new exciting entertainment, a new feeling, fun. It is not a hard core console for lonely youngsters sitting alone in their stinky little dark room. It is for the living room, for parties, for groups and families. And this might be cool for a bunch of people.