You might be right, but the overall point seems to be lost. Microsoft was used to marketing microsoft products to middle aged professionals and now they needed

You might be right, but the overall point seems to be lost. Microsoft was used to marketing microsoft products to middle aged professionals and now they needed to be aware that they may need to think very differently about a very different product from the rest of their offerings (at the time). Also, relatively expensive luxuries (such as video game consoles) do not need to be marketed toward people who have a lot of money. They just need an emotional appeal to the people who will want them -- then those people will either direct a larger percentage of their income toward those items or they'll motivate their parents/grand parents to buy them for them. Lastly, even if a console costs $500, many poor people consider them a very cheap form of entertainment in the long run because that $500 console will last for several years where as a trip to the movies is very expensive since it only lasts a few hours.