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i guess they did, but it's not like it has hurt them at all. i mean, by deviating from "core" gamers, it has allowed them a huge window to appeal to all other kinds of people. what's the point of only appealing to core gamers when you can appeal to the other vast majority of people. i love my 360 a lot, but i also enjoy playing the wii. i would say that they may have lost core gaming as people like to put it, but gained everything else.