I don't know why everyone thinks Nintendo is incapable of making a powerful console. Their last three were the most powerful of their respective generations (GameCube tied with Xbox). They weren't sure how well the Wii would be received, so they wanted to make sure they still made some nice cash if it sold 10 million lifetime.
Believe me, they know that they have alienated some of the more fickle gamers by making a graphically weak system--they will rectify that next generation and STILL make profit per system sold. And don't even try bringing up the DS--it was meant to be a handheld POWERHOUSE until PSP specs were announced.
@Topic: There'll obviously be graphical increases--they'll probably have the current consoles' peak performances as the 'low bar'--but they'll focus on interface more.
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