Depends on how you define appetite, I suppose. I think they could easily increase sales, particularly as more games are released over the next year, if they could only reduce their prices to remain competitive with Nintendo.
The 360 and PS3 are very pricey. Probably too pricey for most people to buy for their kids, but about the right price for young men of ages 18-35 to buy.
But this is the problem with the tech industry. If you design something to appeal to young, tech oriented men, that will limit your customer base.
Tech journalism suffers from this problem. It's almost all written by techie men, who are a minority. Real profits are to be had by producing something that enables ordinary people to do great things without a steep learning curve. Nintendo understands this. Microsoft and Sony do not.
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