Nintendo is releasing an HD console in late 2011. They also had a 5 year head start on controls of the future.
HDD's are not the future for storage, SSD's are but they are not affordable yet. They will build a small console that is at home in the Japanese home. They will build a console that can be enjoyed by many people in 1 room. It will be affordable like all prior console. It will consume little power and have fast loading times. This is what they do.