While I hate to hear about the Wii being lambasted for it's graphical limitations compared to the Xbox 360 and the PS3, it is a little lighter under the hood. Now, I don't think it is nearly as weak as some would say, and I think a lot of developers who don't make games for it are either close minded, or are too lazy to tweak out what is available to them in the Wii engine. From everything I hear, Nintendo made the decision to focus less on the graphical power of the Wii out of necessity. They simply could not compete on the same playing field that Microsoft and Sony were fighting on with the limited resources they had. Still, every other console Nintendo released previously was at or near the top as far as the power aspect was concerned. Well, Nintendo doesn't have to worry about their resources right now; and being that they make minimal bad decisions financially, I don't think anybody sees them falling off any time soon. Even though I think the developers need to stop whining, I believe they will develop more games for their next console if it is comparable to their competitor's offerings. Nintendo could still use support from outside game developers, even with their current track of success going on with minimal help from them currently. Do you think Nintendo will release a console that will compare with the other two on an even graphical playing field next generation?

With the crapload of money that they're making, I think they could release a console that overtakes all the others next gen.

I believe that Nintendo will make a console that will suit their own needs.. If they are willing to bring up their game budget up to 20+ million dollar per game then they will release a graphically advance system... If not then they will produce a less powerfull system..

Well I'm sure they will as they will want to compete. But the reason the Wii had to be so under powered is Nintendo was trying to make a statement. Gaming was going to change and this is how it was going to change. If Nintendo had made the Wii on the same power levels of the PS3 or 360 with the motion controls then what would have happened? The Wii would have been seen as a console just like PS3 and 360 with a little motion controller on the side. If that happened then the Wii would have done nowhere near as well as it did now. They had to make the statement that the Wii is about this new way of playing and developers had to adapt to that. They were not just going to use it as a 3rd platform like the GC was used.

Now that they have that motion controller as the front option, it is only smart to move on to the next generation with a more powerful console. Developers and gamers already grasp it as the systems that have motion controls and now with some more power under the hood. Not to mention they will have to have some separation in terms of hardware from the Wii. Just can't have another Wii with a new control setup as eventually those will stop working. I expect the N6 to be a much more powerful system with a bunch of things that 360 and PS3 have now but still spreading the focus of the machine into this motion sensing and new way of playing strategy. Not to mention, they understand they aren't getting huge support from the developers. But imagine if they could take that all away simply by having their next machine on the similar power levels.

So I certainly expect Nintendo's console to be a lot more powerful. Nintendo has never been one to back down in the power department aside from Wii of course. Gamecube and N64 were definitely powerhouses. But like I've always said, the Wii has always been a console to lead into something else. Nintendo has openly admitted this with their strategy. A console that is meant to disrupt the industry and bring it somewhere else. Wii to disrupt the industry and bring on something else. This is their strategy and they will bring on something else that Wii is leading to. Not the same for DS which was meant to be the disruptor and the end product and Nintendo has played that very very well.

Next generation is not going to be as clear cut but it's going to be interesting. Will have Nintendo with their N6 which might just be a more powerful Wii with some extra features. Same on the next MS console. Might be just a 360 with Natal or other "wii similar" features. And then of course Sony might just stick with PS3. Will be interesting but we'll see how it unfolds. I expect in 2010 (mainly at E3) Nintendo and MS to start detailing their next consoles and how to change the market further.

Nintendo could probably afford to make the most powerful system available next gen and sell it at a loss. They won't do it though.

They'll make a system that best suits whatever software ideas they come up with over the next few years.

Wait, but Sony was doing really well with the PS2, and then decided to make a really powerful system... so why should we say Sony made a mistake, but yet ask Nintendo to do the same?

Because Sony and Microsoft went way overboard this generation in the hardware department, the leap in technology from PS2-PS3 was bigger than any previous jump.

Also

599 US dollars.

Also at $250, Nintendo could have easily released a piece of hardware that was 3-4 times as powerful as the current Wii (still only half the 360/PS3).

By the time their system is released after 2012, They should easily be able to make a console for $300 that outperforms PS3 and xbox 360 by 3:1.

I believe the PS3 was way more expensive than it would have been otherwise because of the Blu Ray player. Nintendo doesn't care about anything but gaming on their systems, so I wouldn't worry about them putting out a $600.00 console.

To say the Wii is not as powerful as the other two console because Nintendo "could not compete" with MS and Sony is wrong, in my opinion. This is how I see the events leading up to Wii.
Nintendo realized there is a relatively small number of "core" gamers out there, and all 3 console makers are trying to get their business. If all three make similar consoles, there are only so many "core" gamers to go around. Nintendo decided to go after people that either do not game anymore, or never gamed. That is a big untapped market that are mostly intimidated by the high tech consoles with the million button controllers. However, how to get these people interested? It has to be affordable, it has to look easy to play, and it has to have a "hook" that can not be found on any other console. Whether you like the Wii or not, you have to admit it was a stroke of genius. Gaming has never been more mainstream. MS and Sony should thank Nintendo. Many of the new gamers that start off with just a Wii have branched out to try the others as well. More gamers is good for all console manufacturers.

Sony went overboard with the unbalanced tech. 360 got it just right. Wii is weaker than Xbox one