Actually, Nintendo has repeatedly stated that new technology is NOT what they see in gaming trend. In fact the Wii was supposed to avoid superior graphics and focus on the game play, mostly in controller technology.
Sadly, this isn't what people want. Oh, yes the Wii is the largest selling game console if you read the market reports. Which IS good for Nintendo, but what they don't care about, nor does it show, is that the Wii is the no. 1 returned console on the market. People will by and return it more often than any other console unit. In fact, if I remember, the XBox 360 is the least returned at the moment.
People do NOT want new innovations, they want familiar things, maybe spruced up and better looking, but they like their old shoes. Which is why you have game lines like Final Fantasy, Grand Theft Auto, Saints Row and all the other lines that are doing well, but aren't new premises. Some games actually manage to make a head way, but it's mostly for their novelty rather than their longevity. And that's just it, you can tell a game is 'good' or 'liked' by how many clones and extensions it spawns.
People don't want new things, they want old things, preferably in new clothes or 'skins'.