That's the wrong question. This is the real one: What will the two others players do with graphics or hardware? Will they follow Nintendo? The answer is probably yes. Nintendo's new strategy works without a shadow of a doubt, so the others are forced to act in a similar way.
It seems clear that graphics have reached a certain point where megaleaps of hardware increases shows less and less difference than before. The differences between this generation and the last were smaller than the one between PS1 to PS2 and those were smaller than the ones between snes to PS1. Isn't that the reason that Nintendo came with the focus on fun and not graphics? That wouldn't have worked well before the wii. There was a staleness creeping in the gaming bussiness. Nintendo saw it, acted after its feeling and struck gold.
Neither company's will not throw much money down a hole when it's not needed. None of the three. The funny thing is that Nintendo doesn't depends on graphics but on color and style. So it possesses a clear advantage over its rivals. The next generation could be very interesting.
In the wilderness we go alone with our new knowledge and strength.
