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axt113 said:

Yes the GCN was powerful, but when it came down to the Wii, they were not able to stay in the graphics arms race while still offering an affordable system, so there is a good chance they will end up not delivering a high power system this time


It isn't that they "couldn't" provide a more powerful system, it was that they choose not to ...

Hypothetically speaking, Nintendo could have easily paired up a PowerPC 970MP @ 2.0 GHz with a Radeon X600/X800 and sold it for $300 without taking a large loss; and the system would have potentially been very small and energy efficient as well.

Why they didn't do this is something only Nintendo knows, but I suspect it was because they were uncertain of the success of the Wii and didn't want to expend the hundreds of millions of dollars in R&D and licencing fees to make it happen.