Actually, they're not trying to catch up with the Wii.  They're trying to attract some of the expanded gamers by adding motion controls.  However, I think it's a bad move for traditional gamers.  Pretty soon if you want games to be like novels and movies you'll have to read books and go to the theatre instead while gaming turns into Wii Sports clones for the most part.

I think Nintendo are currently digging a pretty big hole for themselves. Their losing valuable 3rd party support, and are going for the quick bucks by keeping the Wii overpriced. Sure it is doing great right now, and will still do fine after Natal and ''Arc'' release. But those will already force Nintendo to drop price. ANd what about next gen? Without the motion control advantage and lower 3rd party support, what are they going to do?

Relax NATAL and Arc will likely be flops, almost certainly if MS and Sony keep following the game plan they've been talking about

Bwahahahaha, what value do the third parties give to Nintendo?

NATAL and the Arc won't cause Wii to lower price, unless Sony and MS alter their methods for going after the downmarket

Nintendo only has to disrupt the market again next gen

Are you kidding me? Rare basically saved N64 back in the day, and 3rd party support made Playstation what it is today. And normally 3rd party software also accounts for the biggest part of a consoles software sales.

And what is a $199 Wii going to do against a $199 360, both with motion control support. Wii will be seriously overpriced.

So basically it's the other way around. It isn't that Nintendo doesn't need third parties, it's all they have is 1st party.

^Rare was second party not third at the time, and this gen, third party has had little effect on the Wii

Price has never been the issue, nor is it motion controls, its software, motion controls onl serve to lower the barriers to entry to gaming, but unless MS can match Wii software in appeal to the downmarket, NATAL will lose

All they need is first party really, as it gives them their advantage with the downmarket that Sony and MS cannot match

Relative power has nothing to do with success, that's what Nintendo realized this gen. Their graphics didn't have to be better than the PS3, or better than the PS2, or better than the NES for that matter. It had to be "good enough" for the mainstream expectations and that are incidentally around the 6th gen level.

There is no rule that "casual gamers always like a generation older graphics than hardcore gamers". No, they always like graphics that are "good enough", and that is a constant, not related to the evolution of graphics at all.

Of course the "next Wii", that almost surely won't be a Wii, might have more power, but only if it is required for some new form of innovation that needs more processing. Other than that, graphics don't matter any more.

ok 1. Nintendo 1st parties saved nintendo. Rare just helped them. Agree with the playstation part.
2. if the 360 is $200 is didn't even dent the wii's sales. The motion controls will have to be bundled of its not doing anytihng.
Also how many  people always buy the console that's the troungest hm?

1. Oh well, I won't even bother answering...
2. Right. And unless Sony and MS bundle them they cannot be a serious threat for Nintendo, even if they are perfectly done and with good games. And even if everything goes well and they are bundled with every new console sold, there is the huge installed base without them, so they'd start to be a possible challenge for Nintendo only next gen.
3. Easy to say, but to do?