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Yeah I think they are sore losers. They can't accept that a console that's less powerful, less costly gets more attention. The best solution they found to counter all of it is to say that they don't target the same audience which is a quite weird argument.

Who are Sony targeting when they release games like Little Big Planet, Eye Toy Games, flOw, Patapon and more? Or Xbox with Viva Piñata? Sure core gamers like it too but it does make more diverse people interested than just your average gamers.

Sure it's not their main target but when did Nintendo said that they ONLY target casuals? They also target core players. Core gamers even play with those "casual" titles. They target everyone and this is why it's selling so well. Also why Sony and Microsoft like to so proudly claim they don't compete with Ninty.

It's not really anyone's place to say what's really on their minds... Cause we can't read it so we can't know for sure but we can theorise and that's fun! ^^