That is why everyone is hopeful that Nintendo's stance on working with 3rd parties during Hardware Development is something that carries over from the 3DS. We are hoping for an adequate storage solution, a more than sufficient amount of RAM and processing power, updateable features set that can run across all games and enough inputs to satisfy the majority of dev and pubs (like 4 useable face buttons [+ @: #], Vitality sensor built into the controller, motion camera, etc etc.) so that the only possible excuses are from those that have a grudge (Epic) or just lack imagination.
As for the rest of what was said I'll just quote myself with a few edits.
:quote... sorta:
Tech-wise Nintendo may be behind a gen (Wii is basically a GC 1.5), but at the same time I think Xbox360 & PS3 may have jumped a little too far ahead (about 1/2 a gen ahead) considering the starting price of their launch consoles and also the fact that they were both taking a loss on hardware, not only from the start, but up until the 3rd or 4th year since release.
We should be on the verge of a new generation end of this year and PS360.5 is where we should naturally be with the affordable unified hardware structure. That is where I think Nintendo will land with the upcoming Wii2, somewhere ahead of PS360, but only in an Xbox over PS2 kind of way, not and PS360 over Wii kinda way.
So I think Nintendo may get back on the curve this upcoming gen, but Sony & MS will probably still be atleast a 1/2 gen ahead and their prices will reflect that. They will push for tech that is still priced too high, hoping for systems that become profitable 3-4 years down the line instead of hardware that is affordable on the day of release. This will make their new systems look very capable next to games on their PC counterparts, but given the cost of developing those type of graphics on a console, we will run into the same issue they had this gen with rising cost, closing doors, increased profit lines & the added problem of diminishing returns.