Although Malstrom is right writing that the new casual market could dwarf the hardcore one, he likes to go over the top and somebody doesn't understand it: no giant meteorite fell on earth selectively making hardcore gamers become extinct, while sparing casual ones' life.
There were roughly 100 million console hardcore gamers and another 100 million PC ones (most probably overlapping with a part being both PC and console hardcore) before Wii, and perhaps now they are even more, as there is a minority of hardcore gamers also in emerging countries.
The long and short of this matter is that casual market is lost for Sony and MS this gen, so they must fight for a limited resource, the hardcore market, while Nintendo is free to do whatever it wants in the new and still unlimited (it isn't, actually, but its limits are very far away, so it can be considered unlimited in the short term) market.
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