If we're going back to which companies should be making consoles, then I say get rid of Nintendo and bring back SEGA. That's just me though.

At any rate, the X-Box is growing constantly in popularity, and for a good reason: It's an awesome machine. If things are multi-platform, I always go for the X-Box version. Why? It plays best, has the best graphics, and oftentimes has the best controls. The GC is never even a consideration unless I can't get something elsewhere or won't be able to for a long time (Resident Evil 4, Animal Crossing, SSBM.). The PS2 remains awesome, although much of the time I prefer the 'Box because it's just a slicker package IMO. But, while the X-Box and PS2 both have a raft of games which make the consoles worthwhile, similar games on the Cubay are very few and far between. (Resident Evil 4, Animal Crossing, SSBM... that's about it.)

So, it does not seem to me as though Nintendo's vaunted capacity for making games instead of consoles is so wonderful. Whilst Sony and Microsoft rely largely on third party groups, and have a good selection of games, Nintendo has a much, much smaller base of games and this is often due to their failure to appeal to third parties. (For example, making the N64 cartridge instead of CD based, and the small discs for the GC.)

Nintendo's innovation can be brilliant. But so can the other groups. For example: Kula World, Intelligent Qube, Katamari Damacy, Ico, and Amplitude. The X-Box doesn't have the same originality, but it does things incredibly well at times instead. EG Halo, sports games, Soul Calibur II.

I do hope this works out well. Of course I do. I'm a gamer, I want to see more games doing more things in more ways. But I have very strong doubts that this will do well.