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sethnintendo said:
Fact is that Nintendo will release a new console system with a little better graphics than ps3/360 have right now. The technology will be so cheap they will be able to make money off the system from day one. They are gaining 3rd party support back lately and will hopefully continue to improve their relationship with them. I hope to see better quality 3rd party games on current Wii and next system. There are a few excellent 3rd party games but Nintendo games still dominate the sales on their systems. I am just waiting for the next F-Zero mainly......

I think your prediction really depends on the definition of "a little better graphics than the ps3/360" ...

Today, the Ati Radeon HD4870 is the top of the line graphics card but the die-size and energy consumption of the GPU are much more in-line with previous mid-line GPUs, and it is manufactured using a 55nm process. There should be a fairly major improvement on graphics over the PS3 and XBox 360 produce if you use a similar resolution and frame rate while rendering with this GPU.

Looking forward to 2011/2012 the Ati Radeon HD4870 will have similar performance to top of the line GPUs as the Hollywood processor from the Wii had to top of the line GPUs when it was released; and the Radeon HD4870's GPU would probably have a similar manufacturing cost to what the Hollywood processor had at the launch of the Wii.

 

Now, in no way am I claiming that Nintendo will use a GPU like the Radeon HD4870's GPU for their next system but people need to consider that surpassing that card's performance at an affordable price in the next generation will be a (fairly) trivial task.