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lol the whole problem with this era is console price. It has nothing to do with "fratcore" or "hardcore" gaming.
devs are getting shafted because nobody is buying the "fratcore" games.
Nobody is buying the "fratcore" games because not enough people own the systems which they are on.
Because when Wii was released both MS and Sony were still flirting with 400-600$ consoles, although they each had cheaper versions.
Even now, in a recession the ps3 is 400$. This is the highest price for a console 2 years after debut in a long time. Other consoles at that price fizzled, but both ms and sony have had 400$ systems this gen.
This isn't an era of casual gaming, its a era of casual spending.

As such, I disagree that Nintendo predicted that the other consoles would cost 400$.