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Selling a dedicated gaming system to someone who plays games on a smart-phone or tablet will be far easier than selling a dedicated gaming system to someone who doesn't play games at all ...

You can envision the market as a series of islands that are separated by water, the islands are full of people with similar gaming habits. What Nintendo (or any console manufacturer) needs to do is produce bridge games that span the gap between playing Angry Birds and playing games on their system.