Nintendo has succeeded this generation with both the DS and the Wii in differentiating themselves from the competition in every way possible. Sony and MicroSoft will be struggling to be different from each other, but Nintendo will still be so damn different, that Sony/MS's differences will go unnoticed again.
Most consoles innovate at least a tiny bit in some way, but Nintendo has always innovated up the ass. For example, look at every Nintendo controller. Look at the evolution from NES to SNES to N64 to GC to Wii. Every single one is a crazy experiment. Look at the complete lack of evolution from PS1 to PS2 to PS3 or from XBox to XBox 360. Nintendo never rocks the same controller twice.
Nintendo might just really flesh out the user interface, Miis, online, and tighten the controls, and still have a huge success. The Wii2 could come with a better Wii remote and a better balance board and some ridiculous Wii Sports/Fit hybrid that just dominates the entire universe. Throw in some Pokemanz and Nintendogs and they could even DESTROY THE ENTIRE UNIVERSE.
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