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The issue has really nothing to do with "casuals" Vs "hardcore", it has to do with the very notion of what a game should be.

Games should be, above all things, fun.

fun has very little to do with graphics, controls, sound, AI, etc.

fun is all about combining the right amount of the right elements to give new experiences.

Many hardcore have their own definition of fun. The real fear comes from that they don't like to be proven wrong by the industry and the market.