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To answer the question- Yeah, all the casuals I know are pretty ignorant of the market. Most don't know anything about RRoD even.

However, the casuals I know also listen to the advice of their friends who own game systems and aren't so narrow minded as your friend.

Actually, if he works in IT I'm amazed he'd buy anything from MS considering all the IT people I know hate MS with a passion for constantly putting out crappy Window versions and pushing their stuff on you all the time. Big bunch of Linux lovers. They all own PS3 or Wii.