If this is directed to me I have to say thats absolutely not my point. I just wanted to show that  Wii is stronger then every last gen console. 

So Wii 2 will also be stronger then every last gen console. By this time the last gen consoles will be PS3 and 360. The question was will the next gen wii be more powerful then the ps3. So thats why I made this hypothetical example.

What exactly do you thought I have said ?

The next Nintendo console's power being about on par with PS360 or slightly better/more efficient seems right. I doubt they'll go for something much more powerful, as they've found out 1st hand that's not the way to go. What would be more interesting to find out than its graphical abilties would be the features that'll make it unique.
They'll innovate, that's a given.

Ok you have a point. But the Wii will have a longer life span then the GC its the best selling nintendo home console of all time. Between Xbox and Wii are 5 years time. Between Xbox360 and Wii 2 will be if we assume it release in 2012 which is a reasonable date 7 years time.

In 2 additional years the costs for parts decrease extremly. 

In 2012 the Xbox Hardware is 7 years old. Nintendo is profit driven ok but lets assume the Xbox will be at 100 Dollar in 2012 the production costs will be even lower. So lets assume Nintendo wants to make profit like on the Wii they could build a 180 Dollar console with that money they will easily build a console which is a lot stronger then the Xbox360 or even the PS3 (No bluray No XDRAM no CELL PS3 would be as cheap as Xbox360).

And another thing is Nintendo played it safe they lost two gens in a row normaly they made pretty powerful consoles. N64/GC. So its the first time they made a weak console but now they have tons of money. 

I still think they will stick to their buisness model but they will definetly build a console which is stronger then all HD consoles. The parts will be so cheap in 3 years. The Wii2 could be even cheaper then the WII, (without Bluray) but would still be more powerful then PS3 or 360.

2012 would be much more likely, considering the Wii's success... as for the hardware, lets assume that Nintendo will stick with ATi for their next console.

They could go with a cheap chip, let's say, a RV850, which on a card like the Radeon HD5670 sells for around $100 bucks at retail, and with a profit for everyone (the shop, ATi, the card manufacturer...). A card like that is way above both current "HD" consoles in terms of sheer power, memory, bandwidth, what not. Even better, it would be able to pull out Wii/GC software emulation without effort.

Even with a chip like that, Nintendo would be able to get a profit from every console sold... even if they released it right now and not in 2 years, they would be able to.

The reason I said late 2011 as a release date is because Natal and Arc may force Nintendo to speed up their time-table. 

Nintendo is already running on fumes with their 3rd party developers... the casual market is what is sustaining Nintendo right now.  I don't know how much of an impact Natal and Arc will have on Nintendo sales, but Nintendo definitely has to be concerned.

The Wii already feels dated, and it is being passed over for all the big multi-platform games. 

I think one of the big determining factors will be how good Nintendo sales are through 2010, especially the holiday season.

If sales don't grow or remain flat, then expect to see the new Wii earlier than later. 

it will be more powerful then the PS3 obviously, there will at least be a gap like the ps2 to the wii. That was a 5 year gen for Nintendo, this one will be longer. Nintendo is probably gonna look into a $300 launch price, even at $250 they can make a system more powerful then PS3 for a profit in 2012. The PS3 isn't some kind of god guys, technology gets cheaper quite quickly, and after 6-7 years no matter how advanced it once was it will be outdated.

I don't think the next Nintendo system will be quite up to par with the PS3... although, it may be somewhat close. I really don't think it'll even be HD... Think about it.. PS3 games don't run in 1080p, and to be honest, they don't need to, 720p is good enough.. looking at uncharted.

Also, by the time the new Wii comes out, there will be a new HD standard, and there's no way nintendo's next console will push 2160p, I believe it is. I'm sure the PS4 will do 1080p, but, I'm not even sure if THAT console will even do 2160p... it better have 4GB of ram if it does (I still want it to have 4GB of ram no matter what, lol).... and again, I doubt that, unless that stuff becomes much cheaper by then, and it may.

But, no one's going to be talking about 1080p, the next Nintendo console to come out probably wont do it... so, it wont be in HD, but, close. 720p at maximum...

I just don't know how Nintendo is supposed to get casual gamers to buy this new Wii system... I can see them saying "What's the difference, better graphics? so?" That what happens when you sell to people that know nothing about what they've bought. Look at the PS3, people still don't know all it's capabilities, and trust me, those masses of "casuals" are not going to be so eager to hop on the new system when more than likely, the games that come out on the new system will also be released on Wii as well.. Nintendo did good this gen, but, screwed themselves over for next gen.

My main question is whether Nintendo will go for basic technology or whether it will try to fully compete technologically with the new generation Xbox and Playstations.

I am not sure that Nintendo needs to go all out and compete fully with the next-gens graphics.  Games of this generation are already ridiculously expensive to create.  I am not sure how many developers will be able to afford to use the full graphics capabilities/3D capabilities of the next-gen systems. 

However, Nintendo still needs to be powerful enough so that it can handle some of the better multi-platform games.  The HD dividing line between Wii and Playstation/360 was too strong in this generation.  Nintendo has to do a better job of keeping with the Jones in terms of graphics, while also maintaining innovation, retaining their casual audience, and allowing accesibility to lower-budget game designers. 

As someone mentioned above, Nintendo learns from their mistakes-- and they definitely know that not giving the Wii HD graphics capabilities was a big mistake. 

^ The real question would be: Will Sony and Microsoft go for basic technology or whether they will try to fully compete technologically with the new generation Wii?

My bet is that they will play it safe next generation, no big leaps or anything. They saw the success Nintendo had this generation playing it safe... they took risks, and they were beaten in both console sales and profits by Nintendo with their safe, cheap console.

This is Nintendo we are talking about, they probably will be somewhere in the middle. For example the wii has less memory then the original xbox. So there next system will probably have a pretty good graphics card but be bottle neck due to memory. They probably will not include a hard drive to keep the system price down (upgradeable memory worked fine for them this gen). So like this gen you are probably looking at a system that will be "power wise" between the wii and ps3 and be at least 5 steps behind both the 720 and ps4 (to keep cost right around 250 dollars at launch).