No matter how you spin, or troll, or try to convince yourself otherwise: Kinect is sucessfull. Whether this is good or to what degree is up for debate. (But not here) What I want to discuss, however, is what should Nintendo do about it? Is it taking away sales from the Wii? If so, what will the company do? Will Vitality Sensor be the last hope? Does Nintendo have something up their sleeve? Will they unveil a new console? Basically, what will counteract it, and when will the counteraction be revealed?

They Should take Kinect make it slimmer, Bundle it with a new HD Wii/Wii2 and make Billions.

Nintendo should just mind their own business.

Well selling very well, certainly, but cutting into Wii sales? Not according to the numbers we've been seeing.

Plus Kinect is basically a different form of playing similar Wii games. So it's a successful ripoff (which is a rare thing though). If Nintendo were to respond, they would do what they were planning on anyway: make a system different so that they forge another road in gaming, instead of treading old ground.

Topping the Kinect is gonna be hard. Controllerless gaming is the future.

What could possibly be more innovative other than some sort of improved hardware similar to Kinect?

I am going to dispute the notion right now after the calm of a $500 million advertising campaign for Kinect that Kinect is successful on it's own merits, not just the advertising.

Looking at the sales numbers, I agree Kinect is successful. However, numbers are not generated in a vacuum independent from other variables and I am old and wise enough to look at other factors.

Looking at the sales numbers with the advertising campaign, I cannot honestly say Kinect is successful because it is intrinsically better than the Wii and Move at the moment. I firmly believe Microsoft threw everything and the kitchen sink in with Kinect, thus they are reaping the rewards of a good gamble.

This being said, I don't think we can honestly say Kinect is successful until a year after it's release. Microsoft ain't going to keep pumping in $500 million in advertising for Kinect every quarter of 2011. Thus forth, for me, it is a wait and see game depending largely on how Kinect does during the slow months to render an opinion on whether Kinect is truly successful because it's own merits deem it to be or whether a large part of it's success was tethered with a $500 million advertising campaign.

As for Nintendo, they need to focus on the 3DS and building relationships with 3rd party developers so that when the Mii drops, they will have sufficient relationships to not only dominate with their usual Mario, Donkey Kong, Zelda, and on, but more mature titles to siphon away the steam from both Microsoft and Sony.

 Xbox doesn't have the developing talent that Wii does-- which means they will be reliant on 3rd parties.  Many of these 3rd party games will have ports on both Wii and Kinect (Your Shape, Zumba, Michael Jackson, future Just Dance games, etc).  I still think Kinect has the uphill battle in building a solid exclusive library.  

Wii needs to have a price-cut down to $150 this year as well.  If Wii cuts down to $150 it may deter people who don't already have an Xbox from buying a Kinect.  The thinking would be why would they buy a $150 peripheral when they could have a Wii instead? 

A price-cut will greatly benefit the Wii, but they sink or swim based on the games that are released.  The Wii desperately needs to have a good schedule of games in 2011.  Wii really needs some good games for both the 1st half and the 2nd half of the year.  Hopefully Nintendo has some pleasant surprises in store at their upcoming conference. 

Kinect hasn't really cut into Wii Sales at all.  People aren't going out and buying 360 Kinect over the Wii in droves and the numbers prove it.  It is the established 360 user base that is mainly buying the Kinect. Price cut to $150 around Oct or so and a decent line up of games for 2011 will ensure the Wii to stay on top this year.

They should continue to outsell their competitors - thats been there plan this whole gen and it seems to be working for them

I still seriously challenge the notion that Kinect can be considered a 'success' at this point.   Atleast not a 'widespread' success like the Wii has been.   I have very serious questions of performance in games and software implementations of it.  Right now expectations are low for the device,  just jumping in front of your TV and waving your hands in the air will be enough to impress most people,  initially. 

This is where I think many of the more realistic,  logical doubters stand.  Does Kinect have the software on the way to show this off as viable tech (This generation) or will it just show itself as a lame duck that can only fufill dancing, fitness, and water plugging games? 

Kinect clearly has the consumer attention for being fresh and new but after my personal play experience with it, it won't hold up on a core gaming sense in it's current capacity.  They need compelling software that runs very well.  I just don't believe they have it yet.  And with almost no quality studios under Microsoft's thumb they are relying heavily on Rare and Third Party Developers to take Kinect to the next level (Which will be a huge mistake in my eyes).

Nintendo has no need to worry because as a previous poster noted,  Nintendo hasn't suffered from Kinect much at all.  Kinect isn't chewing into Nintendo's sales.  Which atleast to me,  says that much of the Kinect purchasing is to existing users curious to try out Kinect and/or to people ready/waiting to upgrade to the 360slim and are taking advantage of the bundle.