I really don;t follow the OP much at all.
How is Nintendos next home console alienating the markets?
HD graphics, better online are the only thing the core market wants.
Price efficient, easy pickup and play entertainment is all that the casual crowd wants.
I can agree with you that the economic situation is going to hurt ALL of the future consoles effectively immediately. Beyond that, I don't get why you're shouting about the sky falling.

The Carnival of Shadows - Folk Punk from Asbury Park, New Jersey
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