Right now I'm confused about their decision to abandon the Wiimote though. If they're upset that they didn't get as many 3rd-party titles, IIRC that had more to do with the hardware constraints of the platform (I remember it being described as two GameCubes strapped together).
> they could sit out a whole console generation and still produce
> another one... don't count them out so fast.
Isn't that the story of Sega though? The Saturn was a flop, and then the DreamCast wasn't enough to rescue them from becoming a software-only company.(1) I don't think Apple would buy Nintendo but...
(2) If Wii U flops worldwide (as many expect) then Nintendo's default option is to go the Sega route and just produce software.
(3) Unlike Sega however, Nintendo's IP is worth substantial market share so I'd expect a major bidding war for exclusivity. Exclusivity would also allow Nintendo to continue to develop for a single mobile and home platform as they do now.
It may not be a games console as such but think something with a large screen , an app store and some new input method that lends itself well to gaming.
So either they will focus on a different category of gamer/games or there will have to be some other more game specific input device such as a controller.
Does Kinect not count as a hardware differentiator? For this reason alone MS has the be the favorite among dedicated game boxes.
Nintendo's been the most innovative historically but they've already shown their hand and sadly for them it's holding a ginormous controller that I'm 97% sure is a refurbished Sega Gamegear.
The only question left about Nintendo is who wins the exclusive rights to Mario/Link and co. It's probably worth the most to Microsoft but Apple has a lot of cash overseas they don't know what to do with.