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I would argue that Nintendo's biggest advantage is that the industry is focusing on fewer styles of games in fewer genres leaving an ever-growing hole that Nintendo is happy to fill. In the previous generation, Sony, Microsoft and third party developers producing HD games completely ignored local multi-player and stopped producing family friendly titles for these systems; and Nintendo capitalized by selling hundreds of millions of copies of local multi-player or family friendly titles.

If Sony and Microsoft's consoles have a similar shrinking of styles of games (and gameplay) in the upcomming generation that they had with the previous generation Nintendo may be able to expand their market further