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Nintendo needed to shift their focus in demographics to avoid performing the same or worse as the GC from a commercial standpoint. They had little hope of gaining market leadership through releasing an expensive console on parity with the 360 and PS3 that would result in a net loss with every hardware sale, especially without the third party support both had on board from the previous generation.

They took a gamble with their blue ocean strategy, went with simpler, more focused hardware that was inexpensive enough to both provide profits with every unit sold from the beginning as well as a consumer friendly price, and it paid off way beyond their expectations.

But the reason for Nintendo's current success is not the source of debate.


Nintendo's core demographic, the ones who kept the GC alive and Nintendo in the console business last generation, seem to feel slighted that the company's focus no longer caters to them, but instead to the demographic of new and non-traditional console owners and potential buyers; the additional demographics responsible for Nintendo's current success.

I think the way Nintendo sees it, is that they already have the Nintendo core demographic locked up, same as they have every generation, leaving them little reason to focus efforts "preaching to the choir."

There are still other events at which Nintendo can make the announcements many of its long time fans have been looking forward to, but they still missed out on a prime opportunity at this year's E3 due to the high level of expectations that had been generated among their core demographic.

But it's important to clarify that Nintendo's core demographic is no longer what is keeping Nintendo afloat as a company, even if they are still largely responsible for buying most of its core hit franchises.