Well, you see the problem is actually that developers like money. They typically develop a game and make it work on the lowest common denominator so it can easily be ported to better systems. Take last generation for example, developers would make a game for the PS2, because it had the worst hardware specs. Then they could easily port it to the GC or xbox (it is easier to port to xbox than GC was) and then they can sell 3x as much but only one development cost.
This time however, the consoles are a little different. Xbox 360 and PS3 can have games made for one and ported to the other, with very little hassle, but to take one of those games to the Wii is nearly impossible. This obviously is because the Wii doesn't have the same level of power as the other two. Nintendo did this partly on purpose i believe, because it forces developers to make a game on the Wii, only for the Wii. Yes the games could be ported over to the other two systems, but who would buy it? When they develop for the Wii, they develop with a brand new style of control, and that can't be passed to the other consoles. The problem is that developers won't take the wii seriously because it is so under powered compared to the other two consoles. And because of this, less effort is put into the games that are made for the wii. They have mini-games type party games, and first person shooters and such, but they are not innovativly using the controls. They are designed to be ported to other systems with wii controls tacked on. Take a game like any Nintendo release on the Wii and you will find it to be nearly impossible to port to the other systems because the controls are so different than xbox and ps can handle. Remember, PS3 has tilt support, but wii controllers can actually detect their position in 3d space to within 5 nanometers as quoted in popular science magazine.
If developers want to make killer Wii based games, they need to expect the games to be for the Wii only and not try to make the games easily ported to another system. That is why Nintendo releases are so much better than 3rd party right now. And that is what Nintendo is trying to change with the huge gap in graphics. Rest assured that their next system in 4 years time will had HD and better graphics as the price on parts will drop a lot by that time... and xbox360 and s3 are expected to be in this cycle for 10 years, so in 4 years time, Nintendo will catch up and the other guys will only be half way through their swing.
Also, I like 360 over PS3 and love my Wii, but they are all very different and good/fun systems.
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