Yeah I'm really wondering what the heck Nintendo is gonna do next. From my perspective they've kinda backed themselves into a corner.
They sell two low tech consoles, because they could not continue down a high tech path. It became too expensive.
Those two low tech consoles, imo, sell on two gimmicks, motion control and touch sensing.
So it just begs the question..what are Wii2 and DS2 going to look like? I defy anybody to answer me that in a convincing fashion.
I actually think they have one option left in the console space possible for Wii2. Some sort of full 3D motion detection system using cameras. I'm sure MS, SONY, and Nintendo are now busy patenting everything they can get their hands on related to motion control, so I think Sony and MS could copy 3D motion control anyway.
Idon't think Nintendo cornered themself, in fact they were cornered before the wii, theirs exclusive were not that graphic hungry, they hadn't any hype form their previous product, not strong editors support.
So they gave up the idea of pushing out a high end product, more doing so they limited the financial risk.
But I don't think they do so because it was too expansive, they just feel that they shouldn't aim at that part of the market. they went for chasing casual market (and planed for expend it) while keeping theirs traditional gamers.
For the next wii I think Nintendo will come with something better than the wii, but I can't see them aiming at sky high perfs, the next Wii will just be good enough for its purpose, hd gaming, with ok physic effects, and further improved motion sensitivity.
I also think nintendo will purchase available technology to not bear the cost RD.
My bet is on power efficient ppc (OoO) that 3dilletante spoke a lot some time ago.
something like a SOC with at least 2 cores.
for graphics a mid/low end slightly tweaked AMD part.
My bet would be an UMA design with 512MB of RAM GDDR4 RAM
In fact really close to a 360 but with a better/newer gpu.
Nintendo is a rich company they can afford a lot of stuffs but the hardware don't have to do more than it's marketed for.