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I think Nintendo will release a second console in 2011 early 2012. The new console will  be a "hardcore only" kind of thing while keeping the Wii on the market for a couple more years. Just like how the PS3 and PS2 were three years ago.

Third parties can continue making shovelware for wii without having to compete with nintendo games because they'll be working on games on the new console with the other second party and more powerful third party developers.

It'll be just like that third wheel they were saying the DS was going to be.