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I always think of 'casual' and 'hardcore' is a way of playing a game rather than describing a game, for example my Mum loves playing art style picopict, what many would consider a 'casual game' but plays it in a very hardcore manner.

There is definitely a divide within the industry on the matter.  At my 6th form college, most gamers I would consider 'casual' play fitness games, FPS and racing games.  The people I consider hardcore generally play platformers and jrpgs.  But that is a massive generalisation.