I always viewed the "hardcore" Nintendo fans as people who just happened to fit in with Nintendo's business strategy. If you will, you can call them the people who never grew up.
Super Mario Galaxy, Super Smash Bros. Brawl, Twilight Princess and such are all excellent titles, the former is nearly my favourite game yet. They're essentially games made for children, that adults also can play. Generally, saying that there insults a lot of people, because they don't want to be playing children's games.
A fitting way to describe it is that Nintendo games make you feel like a child when you play them. You lose your cynicism, doubts and such and just love the games like a child does. The more "standard" Nintendo games (Mario, Zelda, Donkey Kong, etc) appeal to children, and people who become children when playing the games.
Whether Nintendo targets a new audience (the children) or the old audience (the people who are now grown up, but become children when playing games) is really quite irrelevant - and probably close to impossible to distinguish now - because they like the exact same games.
So I'd say the "old" Nintendo didn't make games for everyone. They make games for children, and the people who become children when playing games. They didn't make games for the rebelling youth, violent people, or the people wanting a proper intellectual challenge. Or just the people who simply weren't "childish" enough to play their games.
Meanwhile, the rest of the industry targeted the people who weren't children at heart. Whether they were children who felt like being adults, teens who wanted to rebel against their childhood or young adults.
Neither really targeted the adults. Nintendo only partially targeted the adults by targeting the ones who liked playing the childish (targeted at children) games, and the rest of the industry did even less. Those are essentially the people Nintendo started doing with the DS.
So mainly, Nintendo attempts to attain new gamers, as well as keep the ones that are children at heart. However, they pretty much keep the ones who are children at heart by just trying to attain new gamers.
Oh, and just out of curiosity - the gaming industry is larger than/on size with the music/movie industries now? Are you sure about that, I don't recall hearing anything about that.















