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The Blue Ocean strategy is moving into a market where there is no competition (Blue Ocean) rather than fighting in a market where there is a lot of competition (Red Ocean).

The reality is that it can be applied to 'core' games as well as 'casual' games. Consider what would have happened had a publisher realized that there was no high quality 'Mature' videogames for the Wii at launch and choose to produced a high quality 'Mature' launch game; with (almost) no comptition it would have easily sold well and created a (well known) IP.