Well put.

I think Nintendo probably already is working on a Wii HD, possibly even one that has a full body motion sensing camera. This wasn't exactly a huge secret, I recall people saying MS was working on a device that did exactly what they showed one year ago.

But kudos to MS, that is a real next step. Nintendo should definitely take note. That said I do think Natal like tech + Wiimote wand would be far superior.

For Nintendo honestly I just want to see the new Mario. New Pikmin. More of Sin & Punishment please. Maybe the next Zelda. For now, the best thing Nintendo can do is just make sure they have good games because Nintendo is the only one that can make Nintendo games (go figure).

They may have to answer Natal at some point but that likely will be with Wii HD.

Why would Nintendo launch a new version if the actual Wii is seling like hot cakes?

The same reason they just introduced the DSi. 

The can still continue selling the old Wii for years alongside a new one. 

Because peope like waffles! (Where did Soundwave say anything would happen soon?)

Edit: Obviously right as I was posting this.

@soundwave - Your suggestion of Wiimote + camera is already going into effect with the Ubi-Cam announced last night. It's pretty similar to NATAL (motion sensing/body tracking). Combine that with the Wiimote and Motion+, and you have the perfect balance of body movement and controls.

It's apparent that Nintendo already trumped MS' conference before even going on stage themselves.

So now your problem is that the technology tht was only officially announced yesterday and has only been shipped to developers desks yesterday does not have any concrete examples of how it will be used? I'm sure those things will come out. Give them some time.

But if you can't see how voice recognition, face recognition, and full body recognition can be great for gamers everywhere, then I guess you just have a limitied imagination. I'm not saying this thing will for sure be a success, but it was pretty impressive tech demo despite some of its glitches.

Not now. That's my problem since the presentation, there isn't a new problem. Of course I'll give them time... no rush.

@ bolded... no, I don't see how voice recognition or face recognition is going to be great for gamers, the same way I don't see how fingerprint recognition or eye recognition will. But... once again, surprise me.

For the last time, launching DSi isn't the same as launching a Wii-HD, people!

DSi is portable! If you have a DS, you can buy a DSi and give the old to your lil' brother! If you happen to break your DS (like if it fell on stairs), you can buy a DSi. Portable means, as Nintendo always try to say, one machine PER PERSON.

Wii, PS3, X360 don't work this way, it's one machine PER HOUSEHOLD. If you have just bought a Wii, will you buy a Wii-HD just because it's HD? Really? You just wasted a lot of money.

There won't be games for it. Nintendo would crack it's install base. 3rd-parties won't make games into a platform that have only a handful of owners, when the prior is the fastest-selling!

So, they will make a lot of HD-less games, and... you bought the Wii-HD because it's HD, right? So... "WHERE ARE the games?" You scream. Sorry... there WON'T be games, and you just used a few hundred to buy a gaming machine that can play your old games, but wait! Don't your old gaming machine do the same?

With DSi it's different, you don't buy it 'cause it has a better graphic. You buy it because it has a camera, it can play music and because it's a trend. Or... like I said... Just because you lost/broke/gave your old DS and you can afford to pay a little more to have all those new things.

With that said, we can infer:
EVERY DSi-only game you buy is a PLUS. You are neat!
EVERY Wii-HD-only game you buy is a need!

Do you see it? The DSi is safer to third-parties, the Wii-HD is catastrophic, it's an all-out strategy that can ONLY WORK within a whole new generation.

EDIT: I just read this "Microsoft tends to name its internal projects after cities. Natal is a city in Brazil, which is where Alex Kipman, one of the key engineers on Project Natal, comes from. What Mattrick and Kipman decided to try to do was to get rid of the controller altogether. They wanted a technology that would enable a gamer to control the game just by moving his or her arms and legs and other body parts. The gamer would become the controller." Source: http://www.time.com/time/arts/article/0,8599,1902208,00.html

Yey! I live at the same town! hahaha! Didn't know that Alex Kipman (the name doesn't help) came from here. wow!