Games. That is how Nintendo will innovate and that will always be the difference. No company can touch Nintendo's in-house output.

Most likely they'll just try to capitalize on their current standing and go with an evolution of the Wii (NES - SNES transition).

I wouldn't be surprised if the next Nintendo console was nothing more than an improved spec Wii capable of pushing equal or slightly improved 360/PS3 visuals in HD with improved Motion Plus controls (more than good enough for me). I wouldn't expect to see this happen until the price of components/tech is low enough to produce and sell such a console at a decent profit at a reasonable price and it is accepted that HDTVs are the standard (over 50%) sets in game playing homes.

The problem with going too wacky with "innovation" is that you can end up with products like the Gameboy VR.

While Nintendo likes to market themselves as the torch bearers for innovation in console gaming, all too often it appears in the form of peripherals that lie outside of the standard gaming experience (ROB, Power Pad, Power Glove, Balance Board, Motion Plus). While they all expand the experience and potential for use in games, they are still split market products aside from the standard.

Accessibility (price, controls and games) more than innovation has been responsible for Nintendo's success this generation.

you're using standard in the wrong aspect pyro.
I'm not saying standard as in normal, but standard as in what the dominant group of owners will have right out of the box.

You are right sports resort doesn't need a stick. But it's arguable that without wii fit, wii would be in a tighter race with the 3-6.

As far as your last lines;
I agree about the DS. But gaming has been expanding for 10 years prior due to the ps1 and 2 and their use of "standard" gaming and games. Sure expansion is great, but what other demographics are they going to be able to target?

I personally think that a big market that is being missed is one that exists on the DS but not on the Wii. Wii is still almost all about games whereas DS has so much more. It has dictionaries, translators, visual novels, books, tutorials....basically, information.
The casual demographic is only so varied. The've already hit the body image enthusiasts, family, and age demographics, and there really isn't that much left except variations example: "throwing the thing at the thing" game.

Expanding is always good. But there is a limit to expansion.

The nunchuk is standard out of the box isn't it?

The expanded audience might like the BB, it doesn't interest me yet but this isn't suprising because it was never aimed at me. Just as the expanded audience might not want a dual Wiimote/M+ or nuchuk+ setup like I would. You can't expand and have the same controller for everyone.

Wii probably would have had lower sales without Wii Fit/BB, still wouldn't be a tight race though.

Yes, their is a limit to expansion but we are not even close to that point yet. A lot of Nintendo's innovations won't appeal to current gamers, that's the whole point but some will improve the control for traditional games. Wiimote and M+ have improved nearly all traditional sports games, IR pointer makes the console more accessible, it also provides the best FPS controls excluding the mouse.

If you are going to do something as bad as quote yourself you should at least reserve it for a time where you are actually right. The problem with Natal is that traditional games don't work well on it. The amount of forward space you have is limited. Unless you have virtual buttons to press there will be other actions that become difficult as well. Firing a gun will be extremely tricky, and any kind of fighting game will be impossible for anything but actuall martial artists. The system has some potential but it needs a ton of refinement to be the main control scheme of a console. The beauty of the Wiimote is it made none of the old games entirely unplayable (although some genres come very close) while still opening up a few more avenues for gameplay (Wii Sports would have been laughed off the face of the planet with traditional controls).

I believe we can all see what will be the next "big thing" from nintendo already. Just take a look at what Iwata is saying since the E308.

He says lots and lots about their business model, advertising, turning the Nintendo products an integral part of the family.

They are trying to create a real "developer friendly quality control". In Japan they are trying a kind of "Wii TV". They are making a lot of effort to load the DS with tons of content. etc etc.

Instead of letting other companies make new peripherals, just make them, this way the 3rd-parties can see "what has a good install base" without trying to expand it themselves.

What i'm trying to say is, Nintendo is trying to have companies and entertainment services gravitate around it. Microsoft is doing some great work (maybe amazing) like that also. That should be the "next race" IMO.

What Nintendo really need to make right in the next gen is the right amount of HW prowess *and* (for God's sake!) have a good media (GC discs? aargh!).