It's very difficult to say, since it's a completely different market they're dealing with.
I myself to tend to lean towards that it will subside once the next tech flavor-of-the-week comes out, whether that's the iPhone or something else. And there's a reason for this, which also debunks the whole 'casuals don't get tired of the movies' idea.
Movies are socially acceptable by everyone- gaming is not. If it stays this way, then I don't see any long term prospect for these new gamers. People want to fit in, and while the current thing is the Wii, when the next one comes, they will move on to "be cool." Now, even those who have one now and like it might not stick with it if all their friends have changed over to the new 'in' thing...
It will be a much tougher battle than Nintendo thinks to keep casuals on a home console. The reason the DS suceeded and the PSP didn't is that Nintendo understood that the handheld market is vastly different than the home console market. So it's not enough to just extrapolate what happened with the DS and apply it to the home console world.
Plus, as someone else mentioned, it will be harder to compete with the 360 and PS3 are at more reasonable prices ($300 for 360, maybe $400 for PS3). There are a still a lot of gamers (including me) that haven't picked up a next-generation console...they will decide the winner.
Vampyronight
Those are all great points, and I'm not just saying that because I agree with them, but because you're backing up your opinions.
The only thing I disagree with is this line: It will be a much tougher battle than Nintendo thinks to keep casuals on a home console.
I disagree because I'm sure Nintendo does not think it's easy, especially after the GC catastrophe. They're speaking very confidently now because that's what fans want to hear, and they should be confident.
However, I'm sure they are understand that if there are too many game droughts then the console will turn into a GC, so hopefully they're working on clearing that issue. The only problem is that in 2008 the PS3 is going to be an extremely fierce competitor with a lower price, all the standout games available and the PS2 casuals ready to make the transfer.
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