In order to develop "Next Generation" gameplay you have to understand what benefits your new hardware has that will impact gameplay ...
A perfect example of this lack of understanding can be demonstrated with the PS3. The higher resolution output, blue tooth controllers, and widescreen format allows Sony to provide 6 player split screen local multiplayer; if you combine this with LAN or Online Multiplayer this would be a unique game play experience that couldn't be done elsewhere.
As I see it this is also one of the biggest things Sony could (but probably won't) do in order to combat the popularity of the Wii; one of the best ways to get someone to buy your system is to give them a positive first hand experience using your hardware, which Nintendo has done (and continues to do) by introducing high quality enjoyable local multiplayer games. The focus on Single-Player Online Multiplayer games isolates gamers and prevents people from getting first hand experience with the system.
