Outcast on 14 January 2009
I think we can take this as meaning the following:
Nintendo is not competing for the attention of hardcore gamers.
Nintendo is competing for the attention of non-gamers.
Sony and Microsoft are competing for the attention of hardcore gamers.
Sony and Microsoft are not (this is changing slowly) competing for the attention of non-gamers.
Therefore they are not directly in competition in so far as target audience.
