Has Nintendo ever actually said they want to 'win' the core audience? That's not an audience Nintendo has ever pandered to, and I'm not sure that anything about the Wii U screams 'hardcore.' Have you heard Reggie talk about checking boxes? That stuff is painful. 1080p? Check that box. I don't think that's going to go over well for them, if that's what they're really trying to do.
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Simplicity is the ultimate sophistication.