Keep in mind that for the most part, Nintendo is aiming at the Japanese market, where they are far stronger than Xbox, and can even duke it out with Sony. So the name is going to be "biased" to appeal to that market.
Having just checked the Wii site it went into the reasoning for the name. "We", the pronounciation, reflects gaming together with friends, family, etc. The two i's represent a unique controller, and expresses (I guess visually) the feeling of getting together to enjoying gaming together with others. (This from their site).
And if this thing has any of the power or momentum of their DS handhelds (which have been sold out on pre-order since they hit the market here) it should be an attractive system. I guess we'll see.
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