What we can however discuss in some detail are the two central philosophies behind the Revolution controller and their market implications.

* The increasingly hardcore nature of the game industry is causing a contraction of the industry.
* New intuitive controller options will result in innovative game play that will bring new gamers into the fold.

Is Iwata-san spouting nonsense or is Nintendo actually onto something?

Very compelling article that describes the general gaming market, and then the OTHER gaming market.

I think he's right, at least about the hardcore segment. It motivates why video games within a genre become more similar over time, why we see a dozen clones and then they fade off. The audience continues to grow smaller, but more profitable. And Nintendo cedes that market, and goes back to casting a creative net for new genres to catch and release new niches.

Lost Garden: Nintendo's Genre Innovation Strategy: Thoughts on the Revolution's new controller