Okay, all fighting, trolling, flaming etc. in this thread stops NOW! If you can't be civil, then don't post at all.
No, Sony is NOT abandoning the hardcore. Sony London has always focused on casual games since the ps1 era. This is normal. The only thing you could be mad at Sony for is announcing a title then canceling it, but you should be over this by now, since the game was canceled months ago.
And no, Nintendo is NOT abandoning the hardcore. The titles they've released so far easily prove this (though I admit, I wish they'd announce more stuff soon, just to appease my paranoia - honestly, they've announced almost nothing really compelling in quite some time, but I know they have stuff in the works - just let me see ;_;).
And yes, LittleBigPlanet, Mario Kart, and Super Smash Bros. are ALL casual. But they are also ALL hardcore. They are easily enjoyed by everyone, yet provide real depth should you choose to invest the time (particularly SSBB and LBP). Of course, Mario Kart really leans on the casual side, while SSBB leans heavily on the hardcore side. They have their elements of both, however.