Personally, I am skeptical of the potential success of the Kinect based on the past history of add-on peripherals(noted exceptions being rhythm games such as Guitar Hero, Rock Band, and Dance Dance Revolution). However, some of you all have some really insular, self-important opinions regarding gamers, games, and the games market(and I include the author of this article in that criticism).
From the view of any game company, games and gaming is a business, nothing more and nothing less, and as a business the goal is to make money and remain profitable. Has it ever occurred to some of you all that the reason companies are so keen lately to consider the ocean of casual gaming is because maintaining profitability in the lake of "core/hardcore" gaming is becoming untenable? That maybe the so-called cadre of "core" gamers just don't provide as much financial support as they think they do to continue carrying the game industry? The result being that game companies have to start looking for new markets and ideas to remain profitable. These massive, epic AAA blockbuster titles that you all love so much cost substantial amounts of investment to create, and, let's face it, many of them are every bit as much half-baked shovel-ware as some of the "casual" games some of you decry, only ridiculously more expensive. Even if the game is remarkably good, it may still run into difficulty recouping the investment costs due to insufficient sales because people have only a finite amount of time and money to invest in these kinds of games. Even further, if you go by the attentions of the gaming press, only the same handful of AAA titles ever sell in significant numbers, which mean only the same few game companies reap any potential profit while the others languish in losses. Little wonder why game companies keep just making the same thing over and over when the only thing "core" gamers are willing to buy is the same thing, over and over; they do this to mitigate the risk of loss that comes from making these expensive titles.
At the end of the day, game companies have no choice but to start looking outside the "core" gamer market in order to remain profitable. It's a necessary business decision. Granted, I think this particular decision on Microsoft's part is not so well-thought out and will not garner them as much market and profitability as they may be expecting or hoping for, but the fact is the gaming industry can no longer pay singular attention to one single class of gamer. To remain profitable and continue to grow and innovate, the game industry must reach beyond this so-called "core" gamer market space. Face it guys, this is no longer the period of 1995-2002, when the "core" gamer was king. There are new market realities which have shifted your position of importance.