Nintendo has always been a company that releases new technology and ideas into the industry. Although some were more successful ventures than others, they've kept on trying to change the way that we play games. 

However, in the same way that Sony was under a lot of pressure to maintain an image of "power" when releasing their Playstation 3, Nintendo are now in a situation where they can't just release more of the same, because we are expecting something completely different each time.

The question is, is there a chance that Nintendo will make one innovation too many? Rumors of an HD Screen inside the "Wii 2" controller sounds like a risk, if true (which I doubt). How about the 3DS? How many people are going to be scared away from the purchase due to the inclusion of 3D? 

Just something which I was pondering - has anyone else been feeling the same way?

Just 2 things.

The silly rumor about the screen in the controller isn't a Nntendo innovation.

3D isn't a Nintendo innovation.

So... No.

Well, the screen in the controller would be very different to the one in the Dreamcast - I think it would have enough differences to make it an innovation (if true, which it's not)

Pandering to third parties, rather in investing in new studios of their own and dominating, that will be their downfall I think.

I see your point, but they must be doing something right.. and even if they release something which fails, it isn't like they don't have other successes to fall back on while they rehash and fix things. I think they'll be around for a while yet

i think i disagree with you on this

First off, Sony wasn't "maintaining an image of 'power'" because their previous consoles were not really powerful compared to their competition. They decided to move away from what was successful for them to take on the strategy that had suited their competition so poorly.

With that said, Nintendo has achieved success by creating a market based on asymmetric values. This has ensured that their product is distinct from their competition ensuring that no one sees buying a competitor’s product as being just as good as one of Nintendo’s products. As long as they can maintain this asymmetry their products will sell based on their own merits rather than based on how they stack up to the competition in the minds of consumers.

no you can't have to much innovation in my opinion. 

In a word:  Virtual Boy

It'll happen again eventually, they'll survive.   Innovation is always a risk, but when well played, can be an extremely profittable one.

I think you confuse the term innovation with invention.