It means a few things:
1) I'm going to need a lot more money for console gaming than I did in the PS era.
2) I don't need to lug my Nintendo console around when my friends want to play Smash Bros.
3) I await Super Mario RPG type collaboration games for the DS / Wii. Please?
As for Nintendo direction, they're just going to keep doing what they're doing now - give the "hardcore" their share of games while making big hits like the Wii series to stay in the lead. I have no clue how they'll be able to hold onto the lead when the next consoles come out though, because if their next system is just a "Wii2" their competition will be able to replicate it (or close to it, better than this gen at least).