miniDVD isn't failed any more than miniCD did, I know companies that make business cards and the like that print them on miniDVD/CDs you can also make your own by just cutting down a regular DVD. MiniDVD was never really a seperate product.

Uh yeah I do... But im also comparing with other systems that are not just nintendo. Compare the N64 with the ps one. thanks.

Well to those who doubted me, seems Miyamoto has confirmed the rumors are false and that we shouldn't believe everything we read

http://gamrfeed.vgchartz.com/story/85712/miyamoto-on-wii-2-there-isnt-smoke-without-fire/

What Miyamoto denied and what you were saying are two very different things ...

Probably 90% of the people who were arguing with you would admit that any details "leaked" about Nintendo's upcomming system should be taken with a grain (or brick) of salt.

Your core argument was that, even though the technology exists and is inexpensive, Nintendo couldn't possibly produce hardware that was substantially more powerful than a 6/7 year old system.

 Actually my point was about all the "Project Cafe" Rumors being too fanboyish, and with regards to the power, thatthere was a good chance it would not be more powerful than the PS3 or 360, due to costs, size of form factor and power consumption reasons.  I never said they possibly couldn't, they certainly could (heck they could probably outstrip the next PS4 and 720 if they wanted to most likely), but due to various reasons, there is a good chance it will not be that powerful, just as the Wii was arguably not more powerful than an original Xbox.

I read through the link that you quoted a few times, but I can't find the section that suggests that Nintendo is not planning on making a powerful console for the next generation. 

Didn't say that it did, I was pointing to him saying that the rumors were not to be believed

Traditionally, videogame console manufacturers have chosen hardware that is the equivalent of 2 year old PC hardware for their systems (at the time of release) because they are particularly inexpensive, very reliable, and don’t consume much energy; and after they have done the hardware modifications, balanced the system (CPU, GPU, Memory and general components) for maximum real world performance, eliminate a bloated and inefficient operating system, and developers focus on optimizing for their hardware in general these systems tend to perform (more or less) like cutting edge PC hardware.

A particularly good example of a system built in this way was the Gamecube being that all the components were fairly unimpressive on their own, but the performance of the system was far greater than systems with much more (theoritically) powerful hardware. After all, many games that were eventually ported to the PC required hardware which was released years after the Gamecube even though most of the Gamecube's hardware was fairly old when it was released.

Why I bring this up is that, when you factor in when Nintendo's system is suggested to be released (2012), even if Nintendo starts with older technology than would be typical for most console manufacturers they should be able to produce a system with substantially more powerful hardware than the HD consoles. The reason I say that is the 3 or 4 year old hardware that they would be choosing (see components from 2008/2009) was already significantly more powerful than the HD consoles, and the gains Nintendo should be able to achieve should push that even further.

In other words, there is no issue with producing an inexpensive system, selling it at a profit, and outperforming the HD consoles.

To illustrate my point further, Microsoft has sold the XBox 360 core/arcade version for $199 for many years already and it is difficult to believe that they are not turning a substantial profit on that hardware today (and have been for several years).  Why would Nintendo have difficulty producing hardware that is substantially more powerful that a system which is (likely) being manufacturered for less than $100 when their target price is probably $300 or $400 and the system won't release for 18 to 24 months?