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I think you're being naive with some of these points. 

2. A well-made game on weak hardware will always outperform a poorly-made game on great hardware.

GoldenEye on the Wii is a better FPS than a lot of PS3/360 shooters and sold far less. Xenoblade is the best JRPG this generation most likely, but probably wouldn't clock in the top 10 JRPG sales this gen. 

6. Gamers can tell the difference between a game made with love and a game made to leverage a market. They will always prefer the former.

Does this mean Metroid Prime 3 was made with 1/20th of the "love" that Call of Duty is? Because they sure aren't equal in 'preference' from consumers (meaning sales). 

10. Core gamers form only a small percentage of the market on all consoles. So-called "hardcore" gamers form an even smaller percentage. "Hardcore" gamers number less than a million, worldwide.

When people are talking about core gamers they are talking about the people who buy and play games like Call of Duty, Assassin's Creed, Halo, Uncharted, etc. The defining characteristics of these games are that they are designed and tailored towards the desires of players who are experienced gamers and perhaps even full on enthusiasts. Now sometimes a 'core' game can become so popular that it transcends these boundaries and is even popular with audiences outside it's intended target market (ie: kids and Kim Kardashian, lol, wanting Call of Duty). 

Nintendo-centric fans tend to rail against the hardcore/core label and don't want it because generally they don't want to acknowledge that there is a rather large base of players that fuel sales of games like CoD/AC/Gears of War/Halo/Uncharted etc. that aren't really interested in Nintendo's own products per se.