@TBD Wow, I'd forgotten all about the Newton! 
I really don't see Nintendo and Sony as competitors too much. They both do things so much differently. Don't take this offensively, but there is truth in this analogy I'm about to use. Swapping the companies from the gaming industry to the auto industry; Nintendo is like a Ford Mustand (affordable sports car, but yet powerful enough that anyone can afford and still have a great time in), Sony is like a Nissan 350 Z (pricey sports car for those with higher expendable income, extremely powerful, and only after the price dropped did you see the average drivers purchasing them). So they are in the same market - like the cars - but, only after a few years of the high-end systems becoming affordable mainstream systems.
The Wii U and iPad 2 - like it or not - are going to be near direct competition though. The reason is that these casual gamers that were dropping $90 on Wii Fit, likely already own an iPad, and the free/cheap games will likely keep many of them on their iPads instead of buying Wii U system.
Wii U will sell, there is no doubt about it. It's just that after the Wii, everyone either wanted an deep expansion of the Wii or something entirely new and innovative and if you were Twittering during the conference, Twitter exploded with "Nintendo Pad" content for hours on end, and Nintendo's poor presentation on it didn't do a good job of setting Wii U apart from the iOS/iPad market.
Hmm, should I play Game Center CX 2 (Retro Game Challenge 2), or The Legend of Zelda: Links Awakening DX today?


