There's nothing wrong with retooling a system to work better and releasing it as a new product. The rub in that, however, is that the product has to do something noticeably better than the previous iteration to convince people to sink more money on it. You have to pander to a new set of values to pull that off well.
Also, I don't much care for the sound of Grampy's alternate universe, as it implies that Nintendo just loses all originality as soon as Sony and MS depart the market, and that nobody fills the void. There's always waves of imitators who want a piece of the market. The only reason they backed off during the PS2 era was because the cost of making a "current gen" console at the time was prohibitively expensive. But now that the entry point is readjusted, we should see renewed interest in trying to be competitive in the console market from firms who probably have even less reason to be in it than MS or Sony. And from ones that have better reason too.
Sky Render - Sanity is for the weak.
