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"I could be wrong, but I think of this much the way I think of people who have historically voted Democratic always voting for Democrats and people who have historically voted Republican voting for Republicans. I think that you just kind of own your console of choice and you will stick with that unless they do something really bad."

This is the main flaw in his thinking. Most people I know have little loyalty to a brand of console. Two generations ago Sony utterly dominated Sega, Nintendo and Microsoft. Last generation Sony struggled to just reach parity with Microsoft and is still behind Nintendo. Is it really any surprise this generation was open for movement among all three again?