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Nintendo is only concerned about one thing right now. How to get enough Wii's manufactured so there are no shortages during this holiday season.

Sure they are working on a follow-up to the Wii, but to suggest it'll be out in 2-3 years is beyond silly. Wasn't there a lot of this same talk about the DS starting to fade due to the superior PSP graphics? I do believe that since Nintendo is making a ton of cash on the Wii, and since HD technology costs will decrease substantially, you will see Nintendo re-enter the "arms" race for the next-generation.

I'm guessing that will be around 2012 though.