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I think it's very possible that they could (don't know if they really want to, though). It's not like Nintendo being behind everyone this generation as far as hardware is concerned that it is behind in the long run. The PS2 was behind as far as hardware is concerned, but they seem to have the best hardware now with the PS3. One generation can make a big difference for Nintendo as far as hardware is concerned.

I do have a question about graphics in general, though: We say "good graphics" means that it looks good, right? Or does it mean something more than that?