Its a good point but I don't think its going to hurt the industry unless you sell your console at a loss, which nintendo don't. But I don't think its gonna bring that much to it either.

But I don't think the Casual audience is going to spend that much money on games. So you might get a lot more people in, but they are going to be spending a lot less and buy a lot less games.

I think this kind of ties in with Iwata's talk about surpassing the 100 million PS2's sold (though in the Wii's case, that's more likely to be made up of machines in use, rather than replacements ;).

Imagine these sorts of numbers:

Casual market -> 100M Consoles x 2 games bought per year = 200M Game sales

Hardcore market -> 20M Consoles x 10 games bought per year = 200M Game sales

Overall, you have pretty much the same amount of games sold each year but to a company like Nintendo, who make a profit on each console sold (not forgetting extra controllers, etc), the former is more appealling. Meanwhile, Sony and MS mainly make a loss on their systems so they prefer the hardcore market outlook, because they make their money back on the games sold.

In this model, you don't need to sell a huge amount of games to each console owner, you go for market breadth. Sony achieved this, somewhat, with the PS2, but they're reverting back to the limited system adoption for the PS3, simply because their pricing makes mass-market penetration a lot, lot harder. In fact, with the estimated losses on each PS3 sold, they can't afford to go mass market in the near future.

I can understand analysts worries, as they are in synch with my own. I've said before I'm all for growing the market that would otherwise shrink under me too games but at what cost? I've decided to place my money on Nintendo.

Implode or explode, Nintendo must be very careful not to destroy everything they have spent years building.

Analysts, who are they? Still, even they or the mighty Nintendo can both be wrong.