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No. Netbook sales have been growing for a couple years and they're like 10% of all portable computer sales.

So folks are buying serious desktops for gaming then? Screw that 360 or ps3 experience? Or maybe they've been buying serious PCs for all those newly unemployed?

I dont know if you are trying to be comical or not, but the experience on 360 or ps3 is miserable when compared to most PC gaming, especially if you game consistently and prefer aiming over auto targeting. Very distinct from the Wii, which fits well and has its own niche.

So yes, most people who buy powerhouse computers do it either becuase they think they need to, or they really do need to to play the newest games.

I agree. I'd also add that the game industry is never given enough credit for the PC revolution. I remember back in the 80s when people started buying PCs and Apples (and others)... almost everyone I ever met said they bought them for word processing or spreadsheets, but what they actually did was play Wizardry and Castle Wolfenstein.

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