"Do you really think they would finalize the hardware before finding out whether the Vitality sensor is a success? If they want to incorporate it on the next system, they will have to wait to see how its received first, hence why the next system hardware is not finalized"

Just making it fully Wii compatible would accomplish that. But I still doubt the systems are complete already if they aren't going to release them in the next year.

Nintendo's hardware R&D lab likely has several versions of the next DS and Wii fully prototyped already (as in physically complete versions that they play around with). Ditto for the Wiimote. For these guys 5 years from now *is* today, that's just the nature of the job. 

More of a question of which one they opt to go with and when they want to release said hardware.

You're confusing "working prototype" with "complete". The latter means they're done and ready to ship. That's what we assumed you meant, and that's what we called you on.

Of course they have prototypes. Nintendo has made that clear about their past systems.

Well ... I think they could also have "complete prototypes" as well.

Wouldn't surprise me if they have basically the hardware side of the Wii 2 for instance pretty much finished right now and are working more on the controller/interface side, which they probably are at a quite advanced stage as well.

But the actual "box" that you'll have under your TV in a year or two or three ... I think they have that already, sitting on their shelves. 

If the Balance Board really hasn't been that widely adopted and Wii Fit is basically the biggest selling game of the decade I believe with a userbase almost as big as the PS3 itself ... I find it hard to believe the Vitality Sensor will become something a ton of third parties use. It's somewhat limited to begin with because you really can't use the nunchaku at all with it. 

I wouldn't mind if its implimented into the base of the next version of the Wiimote though. 

^Hence my point, if its a success, then they want to make sure its in the next gen base hardware, so it'll be used more by third parties, also whether you can use the nunchaku or not is undecided, since the final version of the sensor hasn't shipped.

Well the Balance Board has been a huge success, and that's probably not going to be in the next console either though (not standard anyway).

I think they may be experimenting with a Natal-like camera *in conjunction* with a new kind of Wiimote, and maybe one other new addition for good measure.

For DS2 I think their biggest design issue is likely getting the design back to one (albiet larger) screen rather than two disconnected screens. Because as with the DSi LL you really have to expand the size of the unit to a very large size to get a large viewing area ... if they could get a screen that swivels vertically, they could keep DS backwards compatibility by just dividing the screen into two parts for backwards comp. 

"I think they may be experimenting with a Natal-like camera *in conjunction* with a new kind of Wiimote, and maybe one other new addition for good measure."

No. Nintendo does not copy the other guys unless there is a strong trend. NATAL isn't even released so there is no reason to copy it.

Actually Nintendo has been experimenting with cameras for a while now. Long before Natal.

It probably is the next logical extension of motion sensing wands to be able to approximate full body movement and facial gestures.

Miyamoto said camera-only is bad, but I remember he then added that a camera AND a wand like controller would be interesting.

Beyond that though, I think we probably have to be somewhat realistic ... there probably is a point where Nintendo R&D can only come up with so many ideas, and there's nothing wrong with a NES-to-SNES type transition, which Mr. Miyamoto has also stated would be likely. You don't have to reinvent the wheel every time.