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Nintendo could play it either way. The obviously don't need to be the ones that start the next generation, they are currently making heaps of money as is, but perhaps they will take the kick-them-while-they-are-down mentality.

However your assertion that the Wii is underpowered due to Nintendo running out of R+D funding is fallacious. It was an intentional design decision, not one forced on them by circumstance.