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Expanding the market is phase one of Nintendo's strategy. The taking over happens later when the install base has been established and third parties can ignore the Wii at the risk of thier very existance.

You're a fool if you truly believe the PR spin by both Microsoft and Sony that the Wii is in an entirely different market than the 360 and the PS3. I don't even think both companies believe it themselves. If they do, well, good luck being in distant second and third place for not being prepared enough.

Remember, hardcores are a significantly small portion of the market, but they do buy a significantly higher number of games more than the casuals. Nintendo makes hardware so they can sell their software. Put two and two together.