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What happened to Nintendo targeting core gamers? Did that evaporate along with third party support? Or is he simply implying a "for now" condition?

Anyway, I'm fine with Nintendo in their niche, if that's the route they settle into. Nothing wrong with that. Plenty of people would be happy with that direction.

Edit:  It seems Iwata said 2014 will be Nintendo's year for the "highly skilled gamer".  Interesting.  Do they have anything announced besides Bayonetta?