Basically, the main jist of what I was trying to say, is that Nintendo will "accidentally" be the technological leader, simply by default. Just because they will be the first out the box with a new console. I agree with everybody else in thinking it will be November 2012 (one month before the world ends) , but still, that gives them a full year advantage over the 3rd Xbox machine. During this year, they will be the only game in town, if somebody is looking for the next-level experience.
Nintendo isn't going to design a technological powerhouse, but by the simple fact of it not having a 5 year old architecture , the Wii HD should go beyond what we are currently getting with the 360 and PS3. If you simply consider the limited amount of ram that developers have to work with on the 360 and PS3, the extra ram in the Wii HD is going to be a god-send to developers. It wouldn't make any sense for Nintendo's console not to have at the very least 4 times the ram of the 360. Ram is cheap enough now that this wouldn't be an issue. The GPU in the Wii HD isn't going to be anywhere near as good as the one in the Xbox 3 or PS4, but by the sake of it being 5 years more current technology than the GPU's in the 360/PS3, it will automatically benefit from that. I'd be shocked if it didn't have a couple of launch games that are going to be big-time technological powerhouses in comparison to the 360 and PS3 games coming in November 2012. Even though I'm sure Microsoft and Sony will have some bangers that holiday.
I'm sure Nintendo would love to return to the days of the SNES in terms of having 3rd party games that sell huge numbers. Back in the SNES days, Nintendo made huge amounts of money from selling their own games, but they were also the platform on which the 3rd party games usually sold the most. That's quite a bit of extra revenue that Nintendo has missed out on in recent years. Games like Modern Warfare and NBA 2K11 and Bulletstorm, etc, etc, sell very well on the 360 and PS3, but the developers don't seriously consider making a Wii version, but with a "relatively" powerful Wii HD on the market, it wouldn't make sense for those games to not appear on that console, and to run at a much higher resolution, with a better framerate and higher rez textures. For the most part, the 360 and PS3 have 720p games running at 30 frames per second. A legit next-gen console should be capable of running games in legit 1080p at 30 fps. It could also have 1080p games that run at 60 fps.
I think early adopters and graphic whores would be all over this console if it happens, which I fully expect it to. Nintendo could potentially sell 2 to 3 million units worldwide in the fall of 2012 if they have enough supply, and can get the price in at about $299.99 .