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I also disagree with Nintendo's strategy the past few years, where I indeed feel they squandered away their advantage in the market. However, I am not sure Wii U has abandoned the mass market yet. Maybe they realize that $350 is too expensive for that Wii Sports-market anyway, so their focus will shift more back to them once they are able to drop the Wii U price.

At that time, the Wii U will probably be the cheap alternative to Xbox 3 and PS4, and a good option for the budget gamer. Today it isn't.