It does offer less raw power, but as many have previously stated in this thread HARWARE IS NOT THE ENTIRE COST! There are design teams, software programmers, technicians overseeing the assembly lines, the cut retailers take and so much more. Yes the hardware is weaker than the 360 and PS3s but graphics aren't everything. In case you have forgotten what the Wii offers is more along the lines of gameplay innovation, and with the recent unveiling of the channels (see the official website to figure them out), it offers multiple uses outside of video games, and of course Nintendo's fine tradition of making sure that everything it has on its consoles runs very smoothly and with fast processing. If you take functionality into your calculations, then the Wii makes up for its lack raw power with oh so many other details.