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Good point Alby. I think that MS will have to entirely turn on its "hardcore" fanbase to gain the majority, the general gamer that Nintendo has acquired.

I have a feeling that Windows 7 will be successful, but on the home console side, they will still play 2nd fiddle to Nintendo even in the next generation. If MS joins the motion control market and increases casual support, focus on their hardcore support will wane. Its sort of a tricky balancing act, and even if its perfect, Nintendo only needs to push their next console with another new innovation to trump them.