@Selznick It's possible to be innovative while simultaneously taking a step back in technology. The way Nintendo has been innovative but taken a step back in technology:
Wii: motion controls - innovative; standard definition resolution, lack of DVD playback function - step back in technology
Wii U: incorporating tablets as additional controllers - innovative; making said controller single-touch when multi-touch exists - step back in technology
The Wii suffered when it came to 3rd party developers, especially in ports. Wii U not incorporating multi-touch technology could also limit the system's potential.
I agree Nintendo is innovative, but it's hard for me to ignore the limits imposed through use of older technology.
Nintendo cutting costs again. Innovation is huge, but it's hard to take a step back in technology to achieve it. I may wait until Wii MU (multi-touch version), Sony Touch (makes for sexy games in combination with Move), or Xbox Kupple.
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