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Why are you saying Microsoft did a great job selling to the masses? The public/masses/casuals DON'T watch these types of events. They don't even watch E3. Most of them don't even know what E3 is.

The audience for events such as these are core gamers.

Casuals won't hop on till they start seeing commercials/hearing celebrities endorse/everyone and their mother starts talking about how hip or trendy it is.