They don;t need to, they can beat them with a weaker system, oh wait they already did

Only by the PS3, and only by a little, at this rate, it'll pass the Wii sometime next century

They still got crushed by the Wii, a cheaper weaker system, that made far more sales and profit, for a business like Sony and MS, that's gotta hurt

Oh you mean like how Sony did it the previous 2 generations?   See I bring up irrelevant points also

Actually for a business as large as Sony or MS,  it doesnt matter as much since they have other ways of making money.  And its not like they got beat as bad as the last 2 Nintendo consoles did

Nintendo is definitely releasing something new in 2012 no doubt since Wii is rapidly losing steam and, aside from Zelda: Skyward Sword, there are ZERO AAA games on the horizon for Wii in the near future, and with Nintendo focusing their efforts on the 3DS this year, that doesn't look like its going to change.

Sony and M$ however are in better positions to wait it out, as their systems will continue have a healthy library of blockbuster multiplat and exclusives for the next 2-3 years.  Plus, the technology isn't there yet to justify releasing a brand new console at (presumably) $400-$500 like they did last gen when they will only have marginally better graphics than the current gen if released within the next year or two.  Even the PC, which has traditionally spearheaded graphics technology, is barely ahead of the 360/PS3 in terms of overall performance and visual quality of its game library, and with publishers and developers focusing more on multiplatform titles, the line between PC and console games and technology has been blurred even further.

One more point as to why Sony and M$ will wait it out and give Ninty as much as a 2 year head start over their next gen consoles... there's still no guarantee that Nintendo will go back to the days of the "bit wars" and try to leap-frog the competition with their next system.  More than likely, their next system will simply incorporate technology found in the current generation of HD game systems and will be roughly on par with the 360/PS3 in terms of visuals and raw power, so that Nintendo can price it competitively in the $250-$300 range and make a profit right at the start like they've done with every single generation before.  Don't forget, their primary audience in 2012 will still be the expanded (or "casual") market, and not the "core" market that drives the 360/PS3, although I'm sure they'll try to win some of their former loyal fans back who have since moved on to greener and high def pastures.

actually you prove my point, no need to have a more powerful system, as the weaker one wins

Actually they got beat worse, N64 and GCN were profitable for Nintendo, including R&D costs, Sony and MS are no where near as profitable

I don't believe this at all. MS will never let Nintendo have a 2 year lead with the Wii 2, so they will probably go for the late 2013 holiday season.

I don't know about Sony, but if they do go for late 2014, they are really gonna take it hard up the backside this time with both Nintendo and MS getting a huge headstart. So I think sony will probably go for early 2014 or late 2013 as well.

So you jump from sales to profits to prove a point when it doesnt favor you in one way.   

Nintendo made profits on GC, Sony lost all profits made with PS1 and PS2 because of PS3. That's billions of dollars I believe. I'm sure they care.

Anyways, Nintendo isn't going to just release an upgraded console and call it a day, they'll do much more than that, so I'll wait and see how this plays out.