A true "next generation" Nintendo console, tentatively referred to as the Wii HD, will hit the market in 2011, according to the folks at What They Play. The site claimed that Nintendo is currently showing early presentations of Wii 2.0 to the game development community, and that Miyamoto's new device will be based on completely new hardware and will contain HD visuals, digitally distributed content and expanded storage. The sources said the transition will be similar to "the shift from Game Boy to Game Boy Advance," meaning key elements (such as Wiimote-game interaction) will stay the same while the core hardware gets taken to a new level. Nintendo's not commenting, but What They Play pointed out that R&D spending at the company has more than tripled—from $103 million to $370 million—since the Wii was released two years ago. Be still my fluttering heart. [What They Play]
I'm very curious to see what Sony and Microsoft do for their next consoles. Because Nintendo has shown they can make MASSES of money with hardware, despite the fact it's not even HD graphics.
Meanwhile Sony is loosing a fortune, and Microsoft has only just had a profitable Xbox year at last. Since in the end it's all a business, why would they not copy Nintendo's formula?
So I wouldn't be surprised if the 360 and PS3 are around for a very long time to come, or that when new ones come out, the machines aren't such a huge leap forward, but are profitable from the start.