Yes but you're forgetting one important thing:
Most gamers who buy a Wii are casual gamers, or even parents, that just want something clean and safe for their children.
I don't think that 'graduation' is the right term, I think it's more 'migration' that he's speaking of, when they run out of titles on the Wii they'll upgrade to a 360.
Nothing wrong with that, and the Wii offers some really fun games.
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