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Over all, I'd have to agree with the general idea of what he's saying. But I can't help but feel like Microsoft is just wanting to tap into the same 'casual gamer-base' that Nintendo did and make a bit of extra cash, haha. Right now the Wii's problem isn't appealing to the casual, but to the hardcore; while it's the opposite for the 360 and PS3.
We need to find a good middleground. I think World of Warcraft is an example of how a balance between the casual and hardcore play-styles can be obtained.
There is a line between competitive and idiotic that is very easy to break. If people only thought, and learned some kind of ettiquite, that would help. Maybe they should have an ettiquite guide in each online game? Then a quiz before starting, to make sure that they read it? That could help, a little.