There's not an inherent problem with niche markets, as long as you are the only big fish in the pond.
Having said that, there's nothing wrong with venturing into other platforms, to expand the market for your product. And one untapped field is the growing Linux community. Make a port to that system, and the starved Linux base, which uses 'wine' to play regular pc games if it can, will buy the product out of sheer gratitude.
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