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Upscaling isn't the same thing as actually having the textures designed with high definition in mind from the beginning, I believe.

Sony has a similar motion control coming out and better features. The price of sony's machine will drop. Nintendo doesn't want to get rid of the wii, because it has a chance to become the best selling home console of all time. I don't think it is out of the question to think that Nintendo may somehow update the wii, with games that are hd if you have the upgrade but still work in low resolution if you don't.