No, they've not abandoned them. That's clear from the huge amount of hardcore games they have in development. What they have done however, is put them to the side. It doesn't mean there won't be hardcore games, it jsut means they won't the in the spotlight as much as things like Brain Training or this new Wii Fit. From their conference it's pretty easy to see why. These games are a lot more profitable and more importantly need the advertising.
Hardcore games don't need as much advertising because the people that play them are avid game players, and will find these games, rather then wait for them to be shown. Wheras non-gamers obviously aren't going to know about these new "non-games" like Brain Training, unless it's shown to them in adverts and marketing campaigns. I can't say I'm happy with this new priority, but whatever, as long as they keep the great first party games coming out, I'll buy them, but I think I might as well get an Xbox 360 for third party games. Last gen I only had a GC and therefore missed out on a lot of games, so it'd be stupid to do that again.
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