I will really hold off my judgement until we know more about Nintendo's next system, but my current thoughts.
If the console is only marginally more powerful the PS3/360 Sony and MS will not have need to move quickly. If Nintendo catch's lightning in the bottle with another new control scheme the PS3/360 have both been able to add on to capabilities of the console and since it looks like the next Nintendo console wont have much of a power advantage what is to stop Sony and MS from reacting and bringing forth a similiar new capability to the current machines at lower cost and with a higher install base of consoles.
I do not believe Nintendo will seel the next console at a loss. So I expect that the console will be more expensive than the PS3/360 at launch with less software and similiar capabilities. Sure the Nintendo faithful will jump on board quickly, but dont expect the hardcore gamer crowd will. I also dont think that the new casual gamer crowd that bought into the Wii is the same type of consumer to look to upgrade quickly. I suspect a lot of them will be glad to be playing Wii Sports 5 years from now.
Its libraries that sell systems not a single game.
