The Wii U

Some people seem to hate on Nintendo's concept for Wii U, while others are excited. I think the skepticism is understandable because it's hard for people to imagine a new thing that's different from current things. I still am reeling from people on my forums who "couldn't imagine how the Apple iPad could be of any use," and now it's created a new category of device that may eclipse PCs. The gaming world in general couldn't really imagine the Wii catching on (what's with the weird remote and lack of power??), but it dominated for years. Even the *balance board* accessory outsold the entire PS3 platform, last time I checked. So perhaps its best to look at some history, first.
Nintendo's History
Nintendo has always made good games, but they've also always used a hardware strategy that sets them up for success. (How the hell they make such consistently good games, regardless of hardware, is beyond the scope of my post, but an interesting question, too). Their strategy has been to make new "verbs" and then design games for those verbs. This is actually their term, though I forget if it was Miyamoto or another Nintendo representative who used that term. What they mean is their hardware gives players a new way to interact with games, and so Nintendo can offer new experiences.
If you think back to E3 several years ago, Nintendo boldly announced "We won't be announcing the controller for the Wii at E3." Yes, they actually announced that they would not announce something, and that made news. Why would they not announce the controller? Miyamoto explained that Nintendo was the first system to have a d-pad, and now that's standard. They were the first to have rumble. They were the first to have an analog stick. I think there were other firsts in there somewhere too, but the rest of the industry copies them and they wanted even more of a headstart on the Wii, which is fair enough. We now know that the secret at the time was that they were the first to bring motion control to consoles and the mainstream.
Iwata's Promise
In 2006 at the Game Developer's Conference, Nintendo's President Iwata addressed a packed auditorium about the future of Nintendo. At events like this, you can kind of feel the tenor of the room, if people are angry or bored or whatever else. In that room, the feeling was excitement and skepticism. Iwata's story of the future was exciting but, I think many (including me) thought it was kind of a fairy tale.
Iwata told a story about a company who was doing well and top of their industry, but then another company came along and took their crown. It was about Nintendo losing to Sony, remember that's what happened during the days of PS2. The punch line is that his story was really about Pepsi losing to Coke. Pepsi found itself on the #2 end of the cola wars, and Pepsi's strategy then, he said, is exactly what Nintendo's will be now (in 2006). Rather than sink more money into fighting Coke on the same battlefield, they diversified. Pepsico then created the #1 selling bottled water, the #1 selling sports drink, the #1 selling energy drink, and several other categories. They were fighting on a battlefield that Coke didn't even know they were supposed to care about.
The DS, he told us, is this kind of disruptive