I don't know if we'll even see the vitality sensor this generation. I think they'll save it for a next generation concept to launch their next generation Wii with if they are still interested in pursuing it. I suspect that as a publicly traded company they'll need to get a new platform out shortly if they cannot maintain profit/market share. It isn't the game market which will kill the Wii but the sharemarket as Nintendo is a publicly traded company. I don't think the Wii sales and profit/revenue will be allowed to drop much further before they start finalising the Wii 2.
Tell that to the guys at Sony. They are still investing in this money pit they call the Playstation brand.
Yeah except PS3 performance doesn't dictate overall company performance given how diversified Sony is. Nintendo on the other hand are a software plus platform royalties plus games company. So you'd see how diminishing returns might reduce their share price especially as that shareprice is inflated on previously extremely good sales / profits compared to now.
Which would only be more reason to drop the line all together. It's not making the company money. All it is doing is taking the profits of the other departments and eating it all away, lowing their net income.
Nintendo, with less assets compaired to Sony, would be better off trying to increase sales of the Wii and release bigger software rather than spend much more resources to make a new system and hope it has the same success as the Wii. With a company who only makes games, launching a console is risky. Again, the reason they would rather try to increase Wii sales rather than to bet the farm on a new system, especially when 2009 has shown potential for the Wii and the software does amazingly well.