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They'll probably go for an improved wii. Either way Nintendo have shot themselves in the foot. They may be ahead at the moment, but the market buying the wii will not bother to buy an improved wii as surveys indicate that many wiis are now dust collectors, with serious gamers playing on either the xbox or ps3, resulting in all the hardcore franchises on either the ps3, pc or 360, and not with nintendo.
It's hard to see what Nintendo could do as many people who own HD tvs either already own a wii or are not bothered by one, as hd is for impressive visuals, something the wii is incapable of, and without bluray, is still incapable of delivering in terms of media playback.