What do they NEED to do? Nothing. Absolutely nothing. Kinect hasn't taken away Wii sales much, and it's not going to propel the X360 to first place any time soon, soo...

Hrmmm. By the looks of it, it could be. The fact that Sony and MS introduced these so late from their introduction it shows that this Gen is gonna be much longer than previous imo

MS and Sony want this gen to last much longer, but Nintendo shouldn't...if they just wait and see they will loose marketshare, Kinect/Move will become more sucessful and next gen will be more difficult to win. A Wii 2 in 2012 will likely cause Xbox 720 and PS4 in 2013.

How is Kinect a success exactly? It's not pushing HW anywhere past normal or is it pushing sales of SW. If anything it will be Kinect holding back sales of the 360 this year due to M$ focussing entirely on the new user experience. You can expect the majority of SW sales to be 3rd party for 2011 as there is nothing really of value coming to the 360 from M$ for their core audience.

Not necessarily if the thoughts are correct it will be a HD Wii. I know that is a big IF, but IF this is the case, they would be the same battle. Wii 2 would have to be substantially more powerful to get MS and Sony thinking about nextgen imo

Xbox has never been above a million... it was this holiday... twice... I don't think that was a coincidence. MS have got people buzzing about the Kinect (in australia at least). Out of all possible outcomes, Kinect slowing sales does not come to mind unfortunately. MS is still making games, MS is still getting exclusives, as shown as the same press conference where they unveiled the new xbox and showed Kinect and when it was released at E3, Codename: Kingdoms was announced. Xbox getting COD map packs first.

MS aint forgetting the "hardcore" section, they are just focusing on the "casuals" as well now. I myself and a "Mediumcore" as I like both sections :)

It won't be just an HD Wii, that's just speculation. If a PS3 can be built now at 250$ they could launch a more powerful system at 400$ in 2012...I'm picking 400$ because Iwata said the relation between the price of the handheld and the one of the home console won't change (DS at 150$, Wii at 250$ back in time).

No one listens to Public Enemy any more.

To ask what Nintendo should do is to imply that Kinect is somehow a threat to the Wii. I think all evidence prooves it is not.

And Nintendo is very much likely working on a lot of Motion Plus games, due to the new controllers. This most certainly means games that Kinect cannot do, since while it has precise motion, it doesn't have buttons, or movement controls (whether d-pad or analog stick). While Move has those, it shows that Nintendo has more up their sleeve, and that is what they were doing anyway, with our without kinect.