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Nintendo didn't move away from casuals. Casuals moved away from Nintendo.

The people who lined up to buy the Wii are right now probably playing Angry Birds or "Insert smartphone game" for free. They aren't coming back to buy a $350 console and $60 games for it. By definition casuals don't care much about gaming and are likely happy with the free wish wash they are getting on their smartphones and tablets.

Hardcore are the only ones Nintendo have left.