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I mostly agree with your post, but I would say that the PS3 lost the casual gamers to MS, not to Nintendo. This is a reflection of changing times, as most casual early-20-yo's were in their early teens when the Xbox 1 hitted the market.

The main market for the PS3 would be the hardcore-Sony fans. Those who have FF VII in a shrine because it was their first RPG. Those that hate Nintendo because it's Nintendo and etc.