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So what exactly is Nintendo supposed to do this E3? They can't just forget and completely ditch their expanded audience, yet the veteran players want Nintendo to make a huge hardcore blowout this E3. What is really the best option for Nintendo?

I really doubt we'll ever see a strictly "core" E3 where they just make one huge announcement after another, or just have one huge core game as their main focus. They're going to need to continue balancing core and expanded games in order to cater to everyone.