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 I guess afer GC, they feel the need to differentiate themselves not just in software but hardware as well.

RolStoppable said:

There's one really easy way for Nintendo to always differentiate itself from the competition: By making the box that plays Mario games. Sony and Microsoft can't copy that. Neither can third parties.

Nintendo doesn't need surprise. They just need to make the games that their competitors either aren't willing to make or simply cannot make. But it seems that Nintendo doesn't want to take that route. What's the currently biggest announced game for the 3DS? Super Mario 3DS. That really says it all.

GC says hi. So does N64.

Those two had great games but Nintendo was in dead last with them.

So hardware is important for them too, not just software.