If true, I think Nintendo has made a mistake with the release date.
Their whole strategy has been to create this incredible buzz within the market and hope it catches on with people outside of gamers.... where do you think all that buzz is going to be ONE WEEK (EDIT: SORRY
TWO DAYS 
ING CRAZY/SUICIDE) after PS3 launches?
Every news outlet will have headlines of "PS3 Rush", "Sony Releases New Game Console" so on and so forth. By not releasing before Sony, they lose a lot of buzz in the media and at retailers. Nintendo is doing exactly the opposite of what they want to do in the market.
By waiting out the PS3 launch they now appeal to the niche market... those who were going to get a Wii in the first place, no matter what. On the other hand, people who want a PS3 are going to get it someway, somehow, and they're not going to spend the $500-$600 they have on the side for the Wii.
The market for the consumer who must own every game system as well as the consumer who already has a Wii purchased (in their mind of course

) is a niche market. To appeal to the broad market they would have to release before the PS3 and grab the attention of the broad market they're trying to reach before the PS3 grabs it all.
Their "expansion" now all depends on Sony's showing. Looks like Sony does run the show after all. Not the way I'd do things if I was in charge, but maybe that's why my 2 cents are on a message board and not at an exec meeting at Nintendo
