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That situation would greatly benifit Nintendo, it would be a war between Wii60 and PSWii. There really would be no room for the PS360 because both consoles are just too similar to warrant the extreme cost of buying both.
I think that this is going to be the real kicker for the Wii. In the past generation people could buy a PS2 and an XBOX and not buy a Gamecube. For the most part, if people are looking for another console this generation, the only logical choice is the Wii. For a long time I always trashed on Nintendo's marketing for being the worst in the world, it makes me wonder how they made a complete 180. Must be the Regginator...
Right now Nintendo has the cool factor going, thanks to the Wii-mote(with all it's nifty little tricks) and they have their own competition endorsing them. Nintendo is really sitting on top of the world; they would really have to do something stupid to screw up what they have going now.