WiiHD? Wii Sports 2? I'm sorry, but Malstrom never said that's part of Nintendo's strategy. Because it isn't. There will be no WiiHD. There will be no Wii Sports 2.

I didn't say Malstrom said that. I meant: for more on disruption etc. see Malstroms latest article.
If you think the next Wii won't be HD I think you'll be surprised. Within 5 years HD televisions will be the normal TV's. HD will definitely be incorporated in Nintendo's next console, but it will be presented as something new. And probably for a part of Wii's audience it will be by that time.
Whether it will launch with WiiSports2 remains to be seen, but at least it will be something with the same philosophy. Cheap, Simple but very attractive.

And Nintendo will certainly not promote their next console by explaining that it plays the exact same games. "Hey, buy this new console because it plays old games!" Nintendo are about creating NEW experiences, if you haven't noticed.

Sure Nintendo will. If PS3 would have had complete BC it would have sold better. Wii will sell alot. If people can buy the new Wii, but have the idea that all the games they bought are still valuable, that's a big selling point. If all the people switch from Wii to the competitor they can't play WiiFit and WiiSports etc anymore.

And for Pete's sake, Nintendo aren't earning this money now simply to blow it on R&D for next gen. To some extent that's why they keep large cash reserves, but it isn't to develop a sustaining innovation like a graphical leap or improved motion control. That would be a SNES move or a PS2 move, and Nintendo are no longer looking for sustaining innovations like those.

Surely Nintendo won't "blow" all their money on R&D. But they have much more money to spend than probably ever before. If they spend it wise today they can benefit tomorrow. Don't forget that R&D doesn't need to be hardware only. They can also spend money to improve their production facilities, to be able to produce more efficiently in the future.

I'm not saying they won't add something completely new, but for the most part the new console will be an improved version of Wii.
Nintendo's core business also contains their main games. They are, despite the "revolution" of the Wii dependent on a "regular" game console that suits the Mario's and Zelda's. These core fans of Nintendo cannot be forgotten and they'll demand improvement in the visual department as well. 
If Wii continues like this, it will have a massive audience, which at a certain time will want something better.
Look at iPod. First a disruptive idea, after that sustaining your key advantages.

And one more thing... Wii wasn't Nintendo's "only possibility to survive." They had no debt, high profits and large cash reserves throughout the PS2 era. In fact, Sony vastly increased their first party development and introduced a handheld console as a desperate attempt to copy Nintendo's traditional advantages and get the same kind of stability and profitability. That's how good of shape Nintendo was in last gen.

Iwata said that Wii's "underpowered" specs were necessary to assure that Nintendo would survive even if the console was a complete disaster. Development for Wii was well underway when DS became the massive success it is now. Their low end risk assesment will probably have incorporated a PSP win on the handheld market.

Everything looks very fine for Nintendo now, but investors weren't very happy during the Gamecube days. Sure their financial managing has always been of an almost unparalleled level, but developing new hardware (console and handheld) and software requires high investments.

I'm pretty sure Nintendo would have rather released a console with a little more power, but couldn't take that gamble.

 Because their are factors that affected the Playstation's growth this generation.

Nope, most of the sports licences require EA to make the game for all the big consoles. So it can never release a exclusive FIFA for example.

@disolute:

1. Windwaker was graphically very strong. You may not like the style, but in terms of graphics it was awesome. Mario Galaxy and Metroid 3 were also amazing.  Don't act so immature as if every Nintendo game lacks graphical power.

2. I think that Monolith can make a very decent RPG. And the other examples are also very childish. I bet that Epic couldn't make a good platformer. Every company has its specialty.

3. I agree that Twilight Princess could have been better. It still way better than most of the HD games though.

4. Your peripheral argument is just plain sad. Wii is winning. Get over it.

Anyone saying that Sony and Microsoft will copy them next gen is dead wrong. They may introduce a cheaper price point cause of nintendo (which will result in worse system specs from the get-go...less ram...less features...shorter console lifespan... and is loss for all...thanks nintendo) but I don't see anyone releaseing a motion device as their primary controller. Maybe as a peripheral to capture some of that casual cash...

Nintendo has been playing catchup themselves since n64 and now with the wii they hit a gold mine which saved their ass but they are still behind in software development, hardware specs and variety of games. (first party)

Last time Nintendo was graphically on the cutting edge from a first party perspective was while Rare was still making games for them. Last time nintendo hired actors to give a first party title some voices was...was...help me out here. I don't think nintendo could make a good deathmatch FPS, horror game, action game, driving simulation game or an RPG to save their life. And now they don't have to bother as they got wii fit...

In any case, as long as there is kids, parents and grownups who like to replay games with characters from their childhood, nintendo has nothing to worry about as they will make loads of money. But its more likely Wii will copy 360 and ps3 next gen and give it HD and media capabilities than the other way around...and maybe with the piles of money they are getting from the wii, the will invest some decent cash in the next gen Zelda game and give it voice actors (not for Link as hes a mute :) ) and graphics that are dated to this time period.

Or maybe they will become a peripheral company and just make different types of game controllers for other systems as it seems thats what they do best nowadays.

So lets not praise nintendo for their dominance powers just yet...as they've only been in the sales lead position for 1 year in the last 10 years.

Nintendo has been playing catchup themselves since n64 and now with the wii they hit a gold mine which saved their ass but they are still behind in software development, hardware specs and variety of games. (first party)

I (completely) disagree ...

Sony and Microsoft may not produce a Wiimote which is as simple and intuitive as Nintendo has, and they may make the nunchuck attachment (more or less) the standard set-up, but what Nintendo has done will certainly be copied in some form of another.

Consider (for a moment) that 90% of all uses for the right analogue stick are for manipulating screen-space in a way which is far better suited to the pointing functionality on the Wiimote. Buttons are also a limiting factor in how interactive an environment can be because there are only so many actions you can map to buttons, and the use of these actions is not intuitive. In the future games are only going to be more interactive and (as a gamer) if I'm playing a starwars game as a jedi I want to be able to quickly select a crate and throw it across the room in a simple intuitive way with a high level of accruacy, I don't want to have to carefully navigate for 5 seconds using an analogue stick try to remember which button is the hurl button and then try to clumsily trow the object to where I want it using the analogue stick.