One thing both interviewer and interviewee seem to fail to realise is the insignificance of "What would Wii owners buy if thy don't already have a PS3"
Excuse me, but that demographics Nintendo DOESN'T HAVE TO WORRY ABOUT, as:
(1) they Already own a Wii, job done, they'll buy games for it
(2) if they don't own a PS3 at this stage in the game, then PS-Move is not going to change much
One thing Reggie should be worried about is the millions of PS3 owners and prospective PS3 owners who DON'T own a Wii yet, how is Nintendo going to sell to them? I own a PS3 but have not bought a Wii yet and the big question is "Why should I spend $220 or £140 on a Wii when the PS3 will be offering all the appeal of the motion-controller only only in a far more refined format".
He has to realise it is both Cheaper and Easier for PS3 owners to buy a Playstation Move bundle than buy a Wii.
And say a family is lagging behind, they only have a Playstation 2 and haven't gotten a Wii yet due to all the shortages, but maybe got a HDTV due to the digital-switch-over.
A PS3 will be hugely appealing to that family as it offers:
-a "hardcore" games platform
-a blu-ray player
-a Wii-like "casual" games platform
-Also a DTV with PlayTV
And all the other freebies of free online multiplayer, a convenient web browser, movie download service, Netflix in USA, BBC iPlayer in UK. I hate to sound like a shill but Nintendo is going up against a LOT and Sony are advertising the crap out of their console, especially with their re-vamped look this Move interface is going to be really appealing.
I hope Nintendo responds to this simply by MASSIVELY cutting the price of the Wii down to as close to $100 as they dare, make it so that it is competitive with the price of a PS3-Move bundle, directly target it AT PS3 owners to go with a proven Casual-gaming platform rather than a relative newcomer.
Why do I personally hope Nintendo just makes their console more affordable? One word:
Zelda