With the release of the Nintendo Wii, and the following success of it, is gaming changing its focus onto the untapped market?

It's proven to be a good move by Nintendo, and stands to make them a nice piece of cash, so I'm wondering whether Sony and Microsoft will follow suit.

I mean, it'd make good sense, money wise, because they wouldn't have to spend lots of money developing the latest technology, they could just stick with their previous efforts. Also, they wouldn't have to spend money on the games, they could just make arcade type games and sell them to the new members of the gaming world.

Obviously, they'll still be a market for the hardcore gamers, but will games go backwards in time to cater for those new members who potentially have more money to give?

Or can we all fit into this ever growing market?