Actually, I find that to be very interesting. I mean, just thinking from a marketing perspective, why would someone affiliated with Microsoft say something like that? I mean, if it was out of confidence on Microsoft's part of the X-box 360's superiority, then his comment makes sense, but if that were the case, why mention the Wii?
There are two intelligent reasons I thought of, and they are almost polar opposite. Either Microsoft is a bit worried about PS3 outdoing X-box 360, and wants to highlight the price issue, making both X-box 360 AND Wii look good (a sort of my enemy's enemy is my friend mentality), or Microsoft is so incredibly confident that PS3 is going to bomb, that they're looking at discrediting the weaker adversary in hopes of making the generation after PS3/360/Wii a two console race. Microsoft's pretty sly, so I suppose I could go either way on this one (or perhaps somehwere in the middle).
In any case, I really can't imagine anyone paying $500 for any system (especially with the current alternatives), but I often underestimate the spoiled, hedonistic modern consumer, so I'm not holding my breath or anything. After all, Lil' Johnny wants one for Christmas, and he'll thow a fit if he doesn't get the biggest, best, most expensive system under the tree, so what else are parents to do?