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good read, kind of academic but the second part seemed genuinely thoughtful.

Some reasons why console gaming might not yet be dead though.
1. The average Japanese person targeted by both 360 and ps3 have a lot more money to spend than us americans. Money is not really that much of an issue, but rather where the franchises are, that keeps people spending.
2. High tech is very much a commodity in Japan. I don't think that good enough exists at the moment, but very soon that could be the case, perhaps in one generation.
3. Japanese gamers tend to enjoy story more than anything else. Consoles can provide the extended storylines without sacrificing the "good enough" graphics

I'm not sure about all that stuff about the wii. I haven't really heard whether or not they prefer the controller but one thing I do know is that a lot of people, at least that I know, bought a wii specifically for MH3, and other great exclusive games.

Also, another reason why PSP is popular is because it is almost like a mini laptop. Plus the sexy design doesn't hurt. DS is very similar in this regard.

Finally, I just wanted to note that Japanese homes are not that large, and having a large screen tv and a console really sacrifices space. This is coming straight from 3 transfer students I know.