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I think Jon's point is that gaming was opened up to a wider demographic, and suddenly it wasn't just nerds playing games anymore. Keep in mind, too, he's talking about Europe, which obviously went through a different transition from computers to consoles than the U.S.
Anyway, I think the basic point is that consoles made it so that even dummies could play videogames. According to Jon, the logic is simple -- more dummies than smart kids, so cater to the lowest common denominator. The same is true for any mass entertainment, obviously.
Also, he acknowledges that iOS and such are introducing a lot of innovative new games to the mix. To use Chris Anderson's metaphor, we're now enjoying the "long tail" of gaming. Before we were limited to only the most popular games because we had to buy them from shops, etc. Now we're free to enjoy every new game, regardless of popularity. A lot of those will of course be crap, but a lot of those will be crap to everyone else but treasure to us.
I think Tiny Wings just offends him somehow.
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