Robbie Bach, President of Microsoft's Entertainment & Devices Division, had some things to say about the Wii that I found somewhat surprising:

I'm actually not -- the product has gotten more broad-base acclaim that I would have expected. It's a very nice product, but it actually has a relatively specific audience and a fairly specific appeal, frankly, based on one feature, which is the controller itself. And the rest of the product is actually not a great product -- no disrespect, but … the video graphics on it aren't very strong; the box itself is kind of underpowered; it doesn't play DVDs; there are a lot of down-line components [that] aren't actually that interesting.

...

So the challenge for us is how do we drive to more casual users, and how do we bring more casual experiences to Xbox and Windows? And the challenge for them is figuring out, "Hey, how do I broaden beyond a casual demographic?" We'll see how that plays out.

See, that's a complete misunderstanding (or misstatement) of where Nintendo is at - they aren't really trying to go after the crowd that wants to play Halo, or Gears of War. They recognized that the market for casual games (at an affordable price) is much, much larger than the one for "hard core" games. They don't need to broaden their audience; they just did that by offering better game play. I think Nintendo is quite happy to let MS and Sony duke it out in the "we lose money on each sale of expensive hard core systems" space. While they do that, Nintendo just quietly cashes checks.

Technorati Tags: marketing