A recent quote at GameIndustry.biz.  The 'he' is Robbie Bach (president of Microsoft's entertainment and devices division)

Now the reason I mention it.

 

I think Robbie has missed the mark.  The casual market isn't a small niche market.  The casual market is THE market.  Hardcore gamers are a niche market.  One that is not financially viable unless you own all of it.  If you look at the success of the Playstation and Playstation 2, they were not successful because they owned hardcore gamers.  Instead, they owned a portion of the hardcore, and most of the casual market.  The 360 is looking to be a hardcore's dream machine, but I don't think it will be profitable unless it reaches out to mainstream.  By branch out, I mean totally focus on the casual market.  Trying to through the bone to the casual market by making Viva Pinata won't do it when the 'big' game each month for 12 months is a first or third-person shooter.  What you end up with is a larger percentage of the ravenous shooter fans, but little else as you are alienating the casual market by trying to own the niche.

 

"Fairly specific appeal." That is the description of niche and currently of the Xbox 360. More than anything else, that is what needs to be overcome in order for the machine to truly excel.  The way to do that? Embrace the casual market as THE market you want.