The technical advancements (resolution, polygons, shaders, frame rates, anti aliasing) generally matter a lot less to the current typical Nintendo Wii owner.
While it will be more or less impossible to overlook the difference in visuals between the Wii and Nintendo's next console, the question remains will a handful of new releases when the console debuts be enough to convince the tens of millions of Wii owners to line up to replace their beloved Wii.
Considering that the Wii will likely be selling for $99-149 by the time this new console is released, you will end up having a much, much larger market for the Wii, even as Nintendo tries to get its current customer base to upgrade.
In short, Nintendo's biggest competition may well end up being themselves for the first year or two of the "Wii 2" just as many PS2 owners did not see the value in upgrading their $149 PS2 for a $499-599 PS3.
The key difference however, will be that Nintendo will be able to sell their HD console for $299 or less and still post a profit on every unit sold as the hardware needed to produce HD visuals will cost significantly less to produce by the time the console is ready for production.
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