I think Nintendo is in a very good position to release a highly successful system in the next generation (probably in 2012)...
From a hardware perspective, the High End cutting-edge/bleeding-edge hardware of today will be similarly inexpensive and low energy consumption in 2012 as the Wii was upon release; and there is nothing saying that they couldn't produce a more powerful system that had a tighter-margin at launch. They can keep the performance requirements of their next system (relatively) low because they can focus on 720p/1080i rather than trying to get good performance out of 1080p. And (finally) due to how low performance the Wii is it should be easy to produce hardware that provides obvious improvements (to the average consumer) at a very affordable price range (under $300).
From a software perspective Nintendo will not face the same level of doubt heading into the next generation as they faced heading into this generation, and you should see (at least) good third party support from the launch of the system. On top of this, most developers are learning the lesson that better graphics for the sake of better graphics does not lead to better sales and (therefore) more third party publishers will be able to produce games at a cost where the game/company can be profitable. This means that the industry will be in a position to produce low cost unique and inovative games as well as big-budget conventional games for the same platform.
