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Pyro as Bill said:

Nobody beats Nintendo when they are being Nintendo. Motion control is Nintendo's domain now.

You kids weren't around to see what happens to companies that challenge Nintendo at what they do best. Sony got lucky and combined with Nintendo making an overly complex controller and abandoning their fans by dumping 2d Mario in favour of the "hardcore" cost them. Well it didn't actually cost them because they still made a profit unlike certain conglomerates that can piss money down the drain to hijack gaming for their own ends.

You kids might not remember something called a Gameboy, it killed all challengers with it's casual shades of green. You think HD means anything compared to different shades of green V colour?

Nintendo is going to continue to put it's biggest IPs onto the motion control stage while MS and Sony half heartedly tack it on.

The 3DS is just a taster of what Nintendo can do to the competiton. I'd love to see Nintendo crack open their 26Billion dollar warchest. How many timed exclusives would that buy? 

Nintendo doesn't seem to have an interest in the moneyhatting approach.  They just roll out their first party stuff and get the bulk of the sales.  What they do look to do, is create systems that developers can get interested in, and will do stuff.  They likely listened to third-party developers outside of Nintendo's internal, and made the 3DS something they would get excited over and create games for.

Nintendo, at its roots, is a game company, that has a history over 100 years (first started with playing cards).  They know and understand play, and how to put stuff that delight and captivate.  They have been rocked in the recent past, but seemed to learn from it.  They have acted as leaders along the way, showing class to... this time around.