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Squilliam said:
I described the actions as such as a gross simplification to distinguish the responses. It was easier to write a line, rather than 30 to detail which parts of the market each were going for. The areas I indicated were centres of weight to their strategies, which of course encoumpasses wider elements of the market.

Part 1/2 were never challenged, what I was saying was that Sony was mounting their challenge to part 3, Nintendo moving upwards. I was also saying that Microsoft was not challenging M+ directly, they were challenging Nintendos initial market.

Where we differ, I think, is that I don't see how Sony/MS can stop nintendo from moving up. Devs care only about profits and as Wii's marketshare grows so will Wii's control over larger core IPs. That has been demonstrated over and over again by history.

Your right, MS is definitely trying to capture that expanded market. Natal is not aimed for core games, but for Wii Sports/Fit, etc. But, that ship has sailed and MS didn't catch it.