I basically agree with what Doktor is saying. I think when it comes to Nintendos next console, it's not going to have overly excessive amounts of processing power that it'll be priced outside of massmarkets range. They'll do JUST ENOUGH for it to be competitive with whatever Sony and Microsoft bring out. They'll do JUST ENOUGH for it NOT to be left out of about 50% of the third party games they're missing this gen. They'll do JUST ENOUGH for them to break even from the get-go, maybe even make a nice little profit.
To put it into perspective, wasn't Nintendo making a $50 profit the very day the launched the Wii? If they were to bust their balls just a little bit, and put some of that money they're swimming around in to good use, they'll be very competitive next generation.
At the same time, Sony and Microsoft will be looking to stay competitive with Nintendo, which is why it'll probably be the gen of Wii 2, 3 and 4. :D
