This "hype" of which you speak is ONLY IN the hardcore gamer crowd which comprises a pittance of the overall market, so even if he is wrong, attempting any sort of defense of it by referencing the alleged "hype" that only a few percentage points of the total pie cares about is absurd.
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Nintendo and Apple expanded it, Sony and Microsoft need to redirect those new gamers towards TV-centric playing.
On the other hand, they could go back to the core market and live like it's 2004 again, which wasn't such a bad thing at the time.