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If HD gaming will "Die" because of the Wii then there must not have been much of a market for HD gaming in the first place and it would have died anyways ...

Realistically HD gaming is the future, but the market is not large enough today to support the massive development costs yet, HDTV adoption isn't high enough that enough people care about HD to really make it a major selling feature, and the single minded focus on the "Hard-Core" gamer alienated enough of the typical gamers to cause another videogame industry crash if someone didn't target them.