Where did I say that?

It's in the process of happening. Most disruptions take a long time to fully play out. This one has been playing out faster than most.

Hey, 50% of the market agrees with me.

According to the OP, the next sequence is that the incumbent counterattacks, and fails, and then winds up dead somehow. That last part will not happen, and it's because of the previous statement that you replied to.

I find it strange how everyone ignores the fact that 99% of all Wii owners are girls, while 99% of all HD console owners (and PC gamers) are men. There is a significant biological gap between the Wii demographic and the HD demographic.

Which means all Nintendo have really achieved is to split the video game market in two.

The male "core" demographic will never embrace motion controls, nor will they ever care for Nintendo's systems. There are biological reasons for that. If both Microsoft and Sony decide to focus on the female "casual" demographic in the future, "core" gamers will increasingly turn to PC gaming.

Or another company will step up and fill the gap in the market.

Can you try explaining this disruption to me? This is what I gather from the OP:

Disruptor goes in new direction.
Creates new market.
Market Grows.
Incumbent feels threatened.
Counterattacks by mimmicking disruptor.
Counterattack fails.
Incumbent disappears.

I just don't how a) counterattack fails -or- b) incumbent disappears

you really need to delete that before someone decries you as a lunatic.

Your previous assertion, and that's all it was, makes no difference to the outcome. The incumbent usually has more than 50% of the market by this time in a disruption, the fact that the Wii already has almost 50% market share in less than three years shows just how fast a disruption this is.

Please, there's no need for trolling.

this was not a reply to you. The one with you quoted was. That was to that other guy.

I think you are still thinking in absolutes of hardcore and casual. 

A hardcore  audience will convert to the disruptor's product as soon as it will be good enough for them. Maybe it will require WM+, maybe HD graphics in the next generation, but as these aspects will evolve pararell to the expanded markets expectations, they will once start eing good enough for the great majority.  Just as chemical photograpers converted to digital photography, or when people started to visit the cinema less frequently when the TV appeared. 

You might say that gaming is different because as an "art form", it has fanatic supporters, but the previous examples also had their fans, before the innovation. 

That's a very simple way of describing the events involved(as is the original post), it's not a full outline of the strategy or the events involved.

If you are actually interested in disruption, there's plenty of literature about it. Try http://www.ondisruption.com/