Plus, no third party believed Wii would be a serious succes, and ignored the Wii from launch. Up until recently, much of the development community continued to ignore the success of the Wii, as did many people in 'the industry'. In fact, with Wii sales down so far this year, many of Nintendo's detractors are taking that as evidence their dominance with the Wii is coming to an end, and seem happy about it.
I think there's one reason for that-Nintendo got it right with the Wii, and everyone else got it wrong when it came to the Wii.
As for their next machine, I genuinely don't know. The industry is changing dramatically. The cycle of new consoles every 5 or so years has been broken-partly by spiralling development costs, partly by recession, partly by the losses incurred by Sony, and party because the massive success of the Wii took everyone by surprise, including Nintendo. Microsoft's response to this is Natal, designed to extend the 360's lifespan by another 3 to 5 years.
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