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Horrible.

First of all, $300 is not expensive for a video game system.  NES cost $200, Atari cost $200, Intellivision cost $300.  When you factor in inflation and $300 isnt costly at all, if not cheaper.

Secondly, catering to an adult audience will not hurt Microsoft and Sony at all because the younger audience that is attracted to Wii, DS, and the like will eventually grow into Micrsoft and Sony's target market if they aren't already brought into gaming through the systems already.  To think that one day kids wont want video games because XBox 360 and PS3 didnt cater is kinda silly.