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You are using your console selection rationale (as a hardcore gamer) and applying it to all console owners (not hardcore).

The majority of consumers prefer the Wii. It is not price or a "gimmick" that leads them to want a Wii, it is just the console that appeals to them the most. The PS3/360 were designed for hardcore gamers, like you. The Wii was designed for everyone else. "Everyone else" is a much bigger market than "hardcore gamers".

The vast majority of consumers do not care about HD gaming yet. The 360 is abundant and cheaper than a Wii, but it is still being crushed in weekly sales. It not because people are not informed about HD gaming.