It's in a different market because it delivers a different user experience, one that appeals to a different group than hardcore gamers. I felt this most keenly when I played the Zelda game and actually finished it - if I had to play it on a standard controller instead of being able to slash the sword and stuff, I'm sure I would have found it boring and too challenging. That user experience is totally delivered by the hardware.

Games are also key, I agree, but again the experience and the hardware also end up defining the games to a great degree.