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I don’t think it would necessarily be a bad thing to market towards kids and casuals. But obviously it would not be smart to do that now.
At the very least, they should wait until the Nintendo Switch 2 is a thing.
By that time, the NS1 will be pretty affordable, maybe $150, half its launch price. And that’s not counting any other variations or cheaper models they introcude later down the line.
Then, they can target the teenage/adult/dedicated gamer audience with the NS2.
We already see them doing that strategy with the 3DS.