Nintendo Wii to Rule the World?

I've been reading reports by "analysts" who say that Nintendo is going to dominate the console gaming market until 2009/2010.
Huh? How does a console which is mediocre at best dominate?
Don't get me wrong, I'm a huge Wii fan. And when I got mine I realized that this is truly an innovative console. Well at least parts of it is.
While it's true that the controller is truly innovative, which leads to very innovative gameplay, overall I don't see the rest of the console being innovative.
I can't connect to my media computer and stream media via the Wii, nor can I watch movies on the Wii. I can, however, play games with my Mii, with his oversized head and undersized other parts, but is that innovative?
To me the PS3 is innovative. While I don't own one of these, nor have I spent more than a few minutes playing it I think the PS3 with it's backwards compatible upscaling streaming abilities is the most innovative.
Of course Microsoft will have another Xbox in a couple years and THAT will be the next innovation (can we say streaming to your Zune?) but to say that the Wii is not only THE console market leader, but it will continue to be for a few years is a little short sighted in my opinion.
There are just too many innovations in consoles for that to remain true. Sure it could be considered the leader now. After all it's far outsold the PS3 and will soon outsell the 360 even though it's been out a full year longer.
No, I don't think the Wii is going to hold its market share unless Nintendo can innovate a little more. It's great that I can play GameCube games, and that I can download Nintendo classics via the virtual console. And it's also cool that I can see news from around the world, but that's what those things are - cool. And that's all they will be.
In order to maintain it's share I think Nintendo first needs to fulfill it's demand for Wii's. I know it's working on it, but that's part of the problem.
It's like the holy grail of gaming - if you own a Wii you're a lucky person. However I bet many Wii owners get bored with the Wii (unless they buy or rent a lot of games) mostly because the movement and motion gets stale after a while.
So first they need to fulfill that demand, then let the jury decide if Nintendo's Wii is truly the market leader.
But at that point, once they are nearer to filling the supply chain, they also need to continue to add new features. Whether that is via a Wii V2 or simply upgrading the firmware and offering hardware upgrades.
The Wii could easily stream media I'm sure. It is already wireless enabled, so it just needs the ability to find media. That could be built into software which is loaded on a disc.
They also have the DS which could be worked into this somehow. Much like the PS3 will stream to the PSP over the internet, the Wii could stream to the DS.
Then you'd have an entertainment system that can dominate.

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